NIXSOLUTIONS: Google Ads Now Shown in AI Chats

Google has begun displaying ads within the dialog interfaces of startup chatbots, a move aimed at reinforcing Alphabet’s dominance in the digital advertising sector. This step comes as the rise of generative artificial intelligence presents new competitive threats to Google’s core business.

The company’s AdSense for Search network, typically used to serve ads alongside search results on third-party websites, is now being integrated into conversations with AI-powered chatbots. According to Bloomberg, the new ad placements are appearing in chat interfaces run by startups specializing in AI technologies. Google had started testing this initiative last year, and several startups—such as iAsk and Liner—have now joined the program, sources say.

NIXSOLUTIONS

Ad placement alongside Google’s own search results has historically been the cornerstone of its advertising business. However, that model faces disruption from emerging players like OpenAI and Perplexity AI, who offer users alternative ways to search for and discover information more efficiently. In response, Google is exploring new monetization strategies for generative AI interfaces. “AdSense for Search is available for sites that want to display relevant ads in their conversational AI products,” the company confirmed. Meanwhile, iAsk and Liner have declined to comment on the specifics of their relationships with Google.

Testing Monetization in the Chatbot Ecosystem

Google’s ad revenue continues to draw scrutiny from regulators. In 2024, the company’s search-related revenue reached $198 billion, representing about 60% of Alphabet’s total annual sales. In April, a U.S. federal court determined that Google holds a monopoly in online advertising. However, Google maintains that its market position stems from offering effective and easy-to-use advertising tools.

By partnering with AI-focused startups, Google can experiment with ad formats tailored to chatbot environments, notes NIXSOLUTIONS. These young companies often depend on advertising to offset the substantial costs associated with AI computing. Some, like Perplexity, have already introduced direct partnerships with advertisers—allowing brands to sponsor user queries. iAsk places ads beneath AI-generated responses, while Liner integrates several ads tied to user queries. Although chatbot users tend to click on ads less frequently, Liner says it aims to create a format similar to the early days of Google search ads: minimal, but highly relevant to the user’s intent.

Google’s evolving ad strategy reflects a broader push to remain competitive as search and information discovery shift. We’ll keep you updated as more integrations become available.