Google denies Gemini ads report as AI chatbot monetization debate intensifies

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Google has firmly denied reports that it plans to introduce ads to its Gemini AI chatbot in 2026. Dan Taylor, VP of Global Ads at Google, called the claims inaccurate and based on uninformed sources. While Google confirms no current plans for ads in Gemini app, the company continues testing ads in Search's AI Mode, leaving future monetization possibilities open as competitors like ChatGPT face user backlash over similar strategies.

Google Denies Report on Gemini Ads

Google has publicly rejected claims that it plans to introduce advertising to its Google Gemini AI chatbot, responding swiftly to an industry report that sparked concerns about the future of ad-free AI experiences. The Adweek report claims that Google briefed at least two advertising clients about plans to roll out Gemini ads in 2026, though details on pricing, formats, and testing remained unclear

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. Dan Taylor Google Ads VP moved quickly to counter these assertions, stating on X that the story is "based on uninformed, anonymous sources who are making inaccurate claims"

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Source: PYMNTS

Source: PYMNTS

Dan Taylor emphasized that there are no ads in Gemini app currently and confirmed no current plans for ads exist to change that status

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. Ginny Martin, Google's Ad Liaison, reinforced this position while clarifying the company's broader advertising strategy across its AI products. She noted that ads are available in AI Overviews in the US and expanding to more English-speaking countries, while Google continues testing ads in Search's AI Mode

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The Monetization Challenge for AI Chatbot Services

The denial comes at a critical moment as Google faces mounting pressure to monetize its substantial AI investments. Google revealed in October that Gemini has over 650 million users, a number likely increased following recent product launches

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. Serving free access to hundreds of millions of users daily presents significant challenges, particularly given current AI compute resource scarcity. The demand has grown so intense that Google recently adjusted limits on its free tier temporarily.

Source: Gadgets 360

Source: Gadgets 360

Advertising revenue forms the backbone of Google's business model, making the question of monetizing Gemini service not if, but when. The company has built its empire on offering free services supported by ads, and Gemini represents a substantial departure from this proven formula. Not everyone will subscribe to paid Google One AI or Workspace plans, leaving Google to absorb the considerable costs of serving AI responses to a massive free user base.

OpenAI ChatGPT Backlash Shapes Industry Approach

Google's firm denial arrives amid significant user backlash against its primary competitor. Recently discovered code within the ChatGPT app revealed hidden references to features like "search ad" and "ad features," though implementation details remain unclear

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. OpenAI CEO Sam Altman reportedly called a "code red" for employees in late November, motivated by Google's increasingly powerful AI tools. Altman instructed employees to pause select projects, which included plans to bring ads to ChatGPT.

The situation escalated when ChatGPT began displaying app suggestions that resembled promotional content, recommending brands like Peloton and Target after users searched for related topics. Even paid subscribers encountered these suggestions, triggering substantial criticism. OpenAI's Chief Research Officer Mark Chen confirmed the company has paused displaying these messages, with plans to offer users more controls to adjust or disable suggestions when they return

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What Google's Careful Wording Reveals

While Taylor's statements clearly address the immediate future, the phrasing leaves room for strategic flexibility. The repeated use of "no current plans" doesn't explicitly rule out Google changing its approach later

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. This careful language matters because Google is actively experimenting with ads in related AI products. The company recently confirmed it's testing ads in Search's AI Mode, where sponsored results now appear alongside AI-generated answers—a feature newer than Gemini itself

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Source: PC Magazine

Source: PC Magazine

The distinction between Gemini, AI Mode, and AI Overviews creates multiple testing grounds for advertising approaches. AI Mode operates within Google search as a chatbot-style interface, separate from the standalone Gemini system but functionally similar. This allows Google to gather data on user response to ads in conversational AI contexts without directly affecting the Gemini app experience. Industry observers note that given Google's history of monetizing free services with ads, it seems only a matter of time before ads find their way into Gemini as well

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Industry Implications and What Users Should Watch

The competing pressures of user expectations and business sustainability will likely define the next phase of AI chatbot development. Both Google and OpenAI face the challenge of maintaining user trust while finding viable paths to profitability. The anonymous sources cited in the original Adweek report, despite Google's denials, highlight ongoing industry discussions about advertising integration timelines and formats.

Users should monitor how Google's ad experiments in AI Mode and AI Overviews perform and whether user feedback influences broader strategy. The OpenAI ChatGPT backlash demonstrates that users remain sensitive to perceived commercialization of AI tools, particularly those marketed as helpful assistants rather than search engines. As compute costs remain high and AI capabilities expand, the pressure to introduce some form of monetization beyond subscriptions will intensify. The question facing both companies isn't whether to monetize, but how to do so without triggering the kind of user backlash that forces product rollbacks.

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