Finally, the Google I/O announcement you've been waiting for.
Big Tech Google Google is bringing new AI-powered ad formats to search Finally, the Google I/O announcement you’ve been waiting for.
By Will Shanklin May 20, 2026 3:39 pm EST Google With Google transforming search into an AI-driven experience , it was only a matter of time before AI ads entered the fray. As part of its Google I/O week announcements , the company previewed how Gemini-powered, conversational ads will start appearing in search results. Fortunately, all of the new AI-generated ad formats will be labeled as "sponsored." Google is testing two new ad types in AI Mode , both powered by "an independent AI explainer." First, Conversational Discovery Ads will appear in AI Mode's answers. The company explains to its advertisers that "your ad answers a person's specific question." (Who among us hasn't dreamed of their questions being answered by ads?) Then there's "highlighted answers," which insert ads into AI Mode's recommendation lists. For example, if you ask it about the best language apps, a sponsored entry for Duolingo might appear.
Standard Google Search will also be getting AI ads in the coming months. AI-Powered Shopping Ads are tailored to "big" purchases. (Google's examples include a refrigerator, TV, or espresso machine.) When searching for one of these items, sponsored products will appear in the AI-fueled search results. As the company explains to its advertisers, "Gemini will pull up your most relevant products and instantly write a custom explainer highlighting why your product may be the right choice for them." Then there's Business Agent for Leads. This Gemini-powered ad format places a "smart brand agent" (a custom chatbot that speaks as a company representative) within search ads. For example, a student researching universities might see a box with a "Chat" or "Ask a question" button within a sponsored search result.
Finally, Google's Direct Offers feature is expanding to include more personalized deals. You'll start seeing things like AI-powered product bundles, giveaways, and local coupons. Meanwhile, a built-in checkout feature lets you snag deals without leaving search, and you'll also start seeing personalized travel deals within AI-assisted trip planning.
