
Google announced at its Marketing Live conference yesterday that it had started testing new Gemini-powered ads in its search engine. The new ad formats are coming first to the conversational AI Mode, which recently crossed 1 billion monthly active users.
In AI Mode, users may see two new types of ads: The first one is called “Conversational Discovery ads”, which will offer relevant details about a product that may meet a person’s needs. The second one is called “Highlighted Answers,” and it will display “highly relevant, high-quality ads” in a list of recommendations generated by Google’s AI Mode. Both new ad formats will display a “Sponsored” label.
“To help people evaluate their choices, both of these new formats will feature an independent AI explainer as part of the ad,” Google explained yesterday. “Our Gemini model evaluates and synthesizes information about a product or service, and displays that context alongside the advertiser’s creative. This coherent, independent response ensures transparency and builds trust.”
We’re reinventing ads for AI Search to feel like a natural, helpful part of the conversation. These next-gen formats close the gap between a person’s initial question and their final purchase. pic.twitter.com/azLp3oBW3u
— Vidhya Srinivasan (@VidsSrinivasan) May 20, 2026
In addition to these new AI-powered ad formats in AI Mode, Google also plans to test new ad types in its traditional search experience. In the coming months, the company will launch new Shopping ads featuring an AI-generated text explaining why a product may be relevant to a specific query. A Gemini-powered Business Agent for Leads will also allow users to ask questions about a product to a brand agent right from search results.
This is still early days, but Google is preparing to overhaul how ads appear in its Search engine, which will move away from the familiar 10 blue links we’ve been accustomed to. Google is making its search engine more conversational, with AI-generated suggestions and new information agents that can operate in the background. Personal Intelligence in AI Mode, which can provide more personalized responses using data from Gmail, Google Photos, and soon Google Calendar, has also been expanded to 200 countries and territories across 98 languages this week.