Ads in Google AI Mode: how they work – and why e-commerce brands should get ready now
Google is now putting ads straight into its AI answers. In the US and ten English-speaking markets it is already reality, and the UK is next. It has not reached Sweden or the rest of the EU yet. Here is how the ads work according to Google itself, what it means for your campaign structure and how to prepare without buying into the hype.
TL;DR – the essentials in 30 seconds
- What: Google shows ads above, within and below AI Overviews and directly in AI Mode answers – in the US also in follow-up questions.
- Where: the US plus ten English-speaking markets since 28 October 2026. The UK, Brazil and Mexico are planned for Q4 2026. Google has not mentioned a date for Sweden or the EU.
- How: the same auction as regular search ads. Existing Search, Shopping and Performance Max campaigns are automatically eligible. Exact and phrase match only count when someone clearly wants to buy – the exploratory conversations are reached with broad match, AI Max, Shopping and Performance Max.
- Our take: be quick off the mark, but don't buy the hype. If your product data, campaign structure and measurement are in order when it arrives, you can take a big share of the market before your competitors have reacted.
From list to conversation
For twenty years Google has worked like a list: you type a few words, get ten blue links and click your way forward. AI Mode turns that around. You ask a question in your own words, get a summarised answer and keep asking follow-ups until the answer is right. According to Google, AI Mode queries are on average three times longer than traditional searches (US data from May 2026).
- AdRunning shoes – free delivery todaywww.exampleshop.com
- Best running shoes for beginners 2026www.runnertest.com
- How to choose the right running shoewww.runguide.com
- Men's & women's running shoes – huge rangewww.sportchain.com
- Forum: which shoes for beginners?www.runforum.com
You get a list. You do the comparing yourself, tab by tab.
What we see from the accounts we run: Google has lost a lot of search volume to AI services, but mostly informational searches – not the ones that lead straight to a purchase. Most people still buy from an online shop they trust, or one they meet in an ad. Even so, the shift is clear. Much of the discovery and research now happens in a chat, where we reason, add context and refine the answer. Ads in AI Mode are Google's way of making sure that phase still happens on Google.
Where do the ads show?
There are two surfaces. AI Overviews is the summary at the top of a regular results page. Ads can appear above, within or below it. AI Mode is the fully conversational mode, where ads are woven into the answers – and in the US also into answers to follow-up questions.
All ads are labelled "Sponsored". Google is clear that buying ads does not influence the AI answers themselves. Also new are AI explainers: short texts written by Google's Gemini to give the ads context. You cannot write, edit, approve or opt out of them.
- Above + within: allowed on the same search.
- Within + directly below: not allowed – the same ad doesn't show in both places.
- The AI explainer is written by Gemini. You can't change it or switch it off.
How ads are matched: direct or contextual
This is where your account structure matters. Google uses two ways of connecting an ad to a search:
- Direct query matching – when the search shows clear commercial intent. Exact and phrase match can take part here too.
- Contextual matching – when someone explores, compares and asks broader questions. Only AI-powered targeting counts here: AI Max for Search, broad match, Shopping and Performance Max. Exact and phrase match are not eligible.
- Exact matchSearch campaign
- Phrase matchSearch campaign
- Broad matchSearch campaign
- AI Max for SearchAdd-on to Search
- ShoppingProduct feed
- Performance MaxAll surfaces
There is no setting to target ads only to AI Mode or AI Overviews, and you can't opt out of them separately from regular search. Negative keywords, brand exclusions and pinned assets apply as usual. Results are reported together with the rest of Search in campaign reports and the search terms report. Bidding is the same: cost per click or conversion-based bidding, where Google recommends conversion- or value-based Smart Bidding.
| Campaign type | Eligible on the AI surfaces? | Reaches exploratory conversations? | Role |
|---|---|---|---|
| Search – exact/phrase | Yes, automatically | No, only clear buying intent | Brand and the most purchase-ready searches |
| Search – broad match | Yes, automatically | Yes | Catches longer, more descriptive questions |
| Search with AI Max | Yes | Yes | Matches against your site and ads, adapts text and landing pages |
| Shopping | Yes, automatically | Yes | Product cards right inside the AI answers |
| Performance Max | Yes, automatically | Yes | Covers all Google surfaces with feed and assets |
When is it coming to the UK and Europe?
On 28 October 2026 Google announced that ads in AI Mode are expanding to ten new countries, with Brazil, Mexico and the United Kingdom following in Q4. The ads are in English for now. Sweden and the rest of the EU are not mentioned.
Why is Europe taking longer? Google hasn't said anything official, but our assessment is that EU regulation – not least the Digital Markets Act, under which the European Commission is already examining how Google favours its own services in search – is slowing the launch. We are still convinced it will come. Google is driven to keep owning search, and ads inside AI answers are how it intends to do that.
What does it mean for e-commerce?
When the AI gathers specs, reviews and prices for the customer, the top of the buying journey gets compressed. Fewer people click around to compare, but those who do click through have often come further in their decision. Google says click-through rates are already similar between sponsored and organic product listings in AI Mode (US data from August–September 2026) – the ads are seen as a natural part of the answer.
Two things become decisive. First, that the AI understands your products, which makes your product data in Merchant Center more important than ever. Second, that your account is built for conversations and not just short keywords – otherwise you are not even in the auction while the customer does their research.
Our take: quick off the mark, but no hype
Every time Google launches something new there is a wave of "everything changes now". It rarely does. This update isn't live in Sweden, the first version will have teething problems and most purchases will still happen in shops customers already trust.
But the direction is clear. We are moving from a results page that is a list to a conversation, and discovery is moving into the chat. Whoever is prepared when the ads arrive – with clean product data, an account structure that reaches the conversations and measurement that holds up – can take a big share of the market before competitors have even launched their new campaigns.
So: do the groundwork now, test when it launches and evaluate on real business numbers. That is where the head start is – not in being first to post about it on LinkedIn.
Assessments and observations from Zkond's own client work, not a controlled study.
How to prepare
None of this requires AI Mode ads to be live in your market. It makes your Google Ads and Google Shopping better already today.
Let the AI understand your products
Complete titles and descriptions with brand, model and attributes. Add product highlights (Google recommends 4–6), additional images and lifestyle images. If you use AI to write titles, there is a dedicated field for that. Keep price and stock in sync with your site.
Build for conversations, protect your brand
Let broad match or AI Max, Shopping and Performance Max catch the exploratory questions – together with value-based Smart Bidding. Keep exact match for your brand and the most purchase-ready keywords, and look after your negative keyword lists.
Write to be understood
Clear product and help pages that answer the customer's questions directly, and structured data for products, prices, reviews and FAQs. It helps both Google's AI and your visitors – and it is our recommendation, not a Google requirement.
Measure what pays the salaries
AI Max can send visitors to other pages than the one you set. Make sure tracking templates work for every page, that conversions and values are sent correctly and that you evaluate on contribution margin – not just ROAS in the account.
The AI Mode checklist
0/8 DONEWhat it doesn't mean
- Not live everywhere. For now the ads only show in English in the US and selected English-speaking markets.
- No new campaign type to buy. There is no "AI Mode campaign". Your existing campaigns become eligible automatically.
- Not the end of exact match. You still need it for brand and clear buying searches – it just isn't enough for the conversations.
- No way to buy your way into the AI answer. The ads appear next to the answer and are labelled "Sponsored". They don't affect what the AI says.
Frequently asked questions about ads in Google AI Mode
What is Google AI Mode?
AI Mode is a conversational mode in Google Search built on Google's Gemini models. Instead of a list of links you get a summarised answer and can ask follow-up questions. According to Google, AI Mode queries are on average three times longer than traditional searches.
Where are ads in AI Mode available?
In the US and, since 28 October 2026, ten English-speaking markets. The UK, Brazil and Mexico are planned for Q4 2026. Google has not mentioned a date for Sweden or the EU.
Do I need a new campaign for AI Mode?
No. Existing Search, Shopping and Performance Max campaigns are automatically eligible. You can't target ads only to AI Mode or AI Overviews, nor opt out of them separately from regular search.
Does exact match work in AI Mode?
Partly. Exact and phrase match can show when the search expresses clear commercial intent (direct query matching), but not for broader, exploratory questions. Those require broad match, AI Max for Search, Shopping or Performance Max.
Where do ads appear in AI Overviews?
Above, within or below the overview. The same ad can show both above and within on one search, but not both within and directly below. All ads are labelled "Sponsored".
What are AI explainers?
Short texts written by Google's Gemini to give context to the ads in AI answers. Advertisers can't write, edit, approve or opt out of them. Sometimes a static header appears instead.
Can I pay to be part of the AI answer?
No. According to Google, buying ads doesn't influence the organic AI answers. Ads appear as separate, labelled results.
What should an e-commerce brand do now?
Improve product data in Merchant Center, make sure the account has campaigns that reach exploratory searches, protect the brand with exact match, secure tracking and save a baseline. All of it improves your campaigns today – and gets you ready when AI Mode ads reach your market.
Sources
- Google, "Ads in AI Mode expand to new markets", Shashi Thakur, 28 October 2026.
- Google Ads Help Center, "About ads in AI-powered experiences in Google Search", read 10 November 2026.
- Google Merchant Center Help, product highlights (product_highlight), title and structured_title and image requirements (image_link), read 10 November 2026.
Facts about Google's ad products are taken directly from the sources above. Assessments and advice in this article are Zkond's own. Also read our analysis of the Meta Andromeda update and of AI Max and Performance Max.