Google will begin testing search and shopping ads in its AI-generated responses in the US. The Alphabet-owned company made the announcement on Tuesday, days after the AI Overview feature was widely launched at its annual I/O conference.
The ads will appear in the “Sponsored” section within the AI overview based on the relevance and information of the search query, the company said in a blog post.
Google is looking to expand its dominance beyond traditional search advertising to include emerging generative AI technology.
By incorporating artificial intelligence into its search engine, the company aims to increase its advertising revenue, which represents an important source of revenue for the tech giant.
Google reported a 13% increase in advertising revenue to $61.7 billion in the first quarter ending March 31.
The company said it will continue to test and learn about new ad formats while gathering feedback from advertisers.
Last week at I/O, Alphabet showed how it is relying on artificial intelligence in all areas of its business, including a beefed-up Gemini chatbot and improvements to its prestigious search engine. (Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)
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