Google Expands AdSense to AI Chatbots, Testing Ads in Conversational AI Experiences

Google is quietly testing ads in AI chatbots

Google has built an enormously successful business around the idea of putting ads in search results. Its most recent quarterly results showed the company made more than $50 billion from search ads, but what happens if AI becomes the dominant form of finding information? Google is preparing for that possibility by testing chatbot ads, but you won't see them in Google's Gemini AI -- at least not yet. A report from Bloomberg describes how Google began working on a plan in 2024 to adapt AdSense ads to a chatbot experience. Usually, AdSense ads appear in search results and are scattered around websites. Google ran a small test of chatbot ads late last year, partnering with select AI startups, including AI search apps iAsk and Liner. The testing must have gone well because Google is now allowing more chatbot makers to sign up for AdSense. "AdSense for Search is available for websites that want to show relevant ads in their conversational AI experiences," said a Google spokesperson. If people continue shifting to using AI chatbots to find information, this expansion of AdSense could help prop up profits. There's no hint of advertising in Google's own Gemini chatbot or AI Mode search, but the day may be coming when you won't get the clean, ad-free experience at no cost. Google is racing to catch up to OpenAI, which has a substantial lead in chatbot market share despite Gemini's recent growth. This has led Google to freely provide some of its most capable AI tools, including Deep Research, Gemini Pro, and Veo 2 video generation. There are limits to how much you can use most of these features with a free account, but it must be costing Google a boatload of cash.

Google is reportedly showing ads in chats with some third-party AI chatbots | TechCrunch

Google's AdSense advertising network started supporting ads inside users' chats with some third-party AI chatbots earlier this year, Bloomberg reported. The company is rolling out the feature following tests with AI search startups iAsk and Liner, the report said, citing anonymous sources familiar with the matter. "AdSense for Search is available for websites that want to show relevant ads in their conversational AI experiences," Bloomberg cited a Google spokesperson as saying. The search and advertising giant is ostensibly seeking to capitalize on -- and offset the potential threat of -- the burgeoning trend of users increasingly using AI chatbots like OpenAI's ChatGPT, Anthropic's Claude, and Perplexity to search the web and answer common queries. Google has invested heavily in AI tools and products, with a slate of large language models and frequent updates to its Gemini AI apps and models. The company late last year started showing ads in AI Overviews, the AI-generated summaries it supplies for certain Search queries. Google did not immediately respond to a request for comment.

Google Places Ads Inside Chatbot Conversations With AI Startups

Google's ad network has begun showing advertising within the flow of conversations with chatbots -- part of Alphabet Inc.'s efforts to keep its edge in digital advertising as generative artificial intelligence takes off. Earlier this year, the Google AdSense network, which traditionally displays ads in search results and in the margins of websites, has expanded to include conversations with chatbots operated by AI startups. Google made the move after conducting tests last year and earlier this year with a handful of startups, including AI search apps iAsk and Liner, according to people familiar with the matter who asked not to be identified discussing private information.

It sure sounds like chatbots are about to enter their ad era

The company was running tests for this AdSense expansion last year. Google's Search business is a big part of the company's revenue. This business is held up by all the ads that are served alongside search results. Soon, it could be further bolstered by ads served alongside conversations with your favorite chatbot. According to Bloomberg, Google conducted tests last year to create an ad business model around chatbots, with the help of AI startups like iAsk and Liner. These tests allowed the tech giant to expand its AdSense for Search network earlier this year to include chatbot conversations. Now, the ad network is starting to show ads in the flow of conversations with chatbots run by AI startups. "AdSense for Search is available for websites that want to show relevant ads in their conversational AI experiences," a Google spokesperson told the publication. If you're wondering what form this could take, the outlet mentions iAsk shows ads below generated responses. Meanwhile, Perplexity lets brands sponsor follow-up questions to a submitted query. It's not surprising that Google is toiling away, trying to find a way to monetize chatbots. When generative AI first caught people's attention a few years ago, Google saw AI tools, like ChatGPT, as serious potential threats to its Search business. As more people turn to AI to have their questions answered, the smaller Search's audience gets. Google doesn't want to lose its edge in digital advertising.

Google partners with AI startups to put ads in their chatbots

The latest experiment from Google Labs uses Gemini to help teach you a new language Summary Google is placing ads in third-party AI chatbot conversations via AdSense network. Testing for the new initiative reportedly began last year. Google has faced scrutiny for its ad business in recent years. Google is placing ads in AI chatbot conversations. As reported by Bloomberg and picked up by TechCrunch, Google's AdSense network has been offering ad placement in third-party AI chatbot interfaces since earlier this year. AdSense is a Google program that places ads on websites. Advertisers pay Google a fee for placement, and Google passes on some of that money to the owners of pages displaying the ads. Selling ad space on third-party websites and directly in Google Search results is how Google makes most of its money. As AI interfaces draw more eyes over time, it makes sense that advertisers would be willing to pay to hawk their wares within those interfaces. It seems Google is now happy to facilitate that interaction for a fee. Testing for AdSense ads in conversational AI interfaces reportedly started last year with AI startups iAsk and Liner, and this year, the feature will be rolling out more widely. "AdSense for Search is available for websites that want to show relevant ads in their conversational AI experiences," a Google spokesperson told Bloomberg. AI and ads: A match made... somewhere Google has been in hot water in recent years over its dominance in the online ad space. In 2019, Google lost an EU antitrust case centered around ads placed in Google search results on third-party sites, though that decision was annulled in September. Just last month, a US judge ruled that Google maintained an illegal monopoly on both online ad exchanges and publisher ad servers. Google plans to appeal. Yesterday, Alphabet CEO Sundar Pichai testified in a separate antitrust trial centered around Google's monopolization of online search. The US government may seek to force Google to sell off its Chrome browser, which, the Justice Department argues, has propped up Google's ad business by gathering user data that can be used to sell more specific ads.

Google's chatbot is now showing ads when talking to AI startups

Its dominance has already come under fire by the DOJ and others Google is now showing ads in chatbot conversations via its AdSense for Search network, marking a shift in its digital advertising strategy as generative AI becomes not only more commonplace, but increasingly used in place of traditional search engine tools. Previously, ads were shown within the search results of other websites, however Google added them to conversations with chatbots operated by AI startups earlier in 2025 (via Bloomberg). The rollout comes after the tech giant conducted tests last year, and earlier this year, with AI search apps like iAsk and Liner. Google's ads business has been an incredibly lucrative area for the California company, which maintains a 90% share of the global search market (via Statcounter). However, with the emergence of rival AI chatbots like OpenAI's ChatGPT, consumers are now able to obtain information more succinctly and more quickly, putting Google's business under threat, and therefore its ads network. A company spokesperson has confirmed: "AdSense for Search is available for websites that want to show relevant ads in their conversational AI experiences." Google's collaboration with startups is a strategic move to stay profitable even if the search market as we know it is shrinking, but it hasn't gone unnoticed. Two US senators recently questioned Google about its partnership with Anthropic, expressing concerns about competition in the sector. Microsoft's deal with OpenAI was also under fire. The Department of Justice also recently noted Google's search engine market monopoly is helping its AI strategy, and that its use of AI if further enhancing its search market monopoly. Earlier in April 2025, a US judge also deemed Google violated antitrust laws by "willfully acquiring and maintaining monopoly power" in the advertising technology market. Though found guilty, a further hearing will be required to determine potential remedies.

Google places ads inside chatbot conversations with AI startups

Google's ad network has begun showing advertising within the flow of conversations with chatbots -- part of Alphabet Inc.'s efforts to keep its edge in digital advertising as generative artificial intelligence takes off. Earlier in 2025, the Google AdSense network, which traditionally displays ads in search results and in the margins of websites, expanded to include conversations with chatbots operated by AI startups. Google made the move after conducting tests last year and earlier this year with a handful of startups, including AI search apps iAsk and Liner, according to people familiar with the matter who asked not to be identified discussing private information. Showing ads alongside its own search results is the heart of Google's business, bolstered by a business that serves up advertising across much of the web. That empire has come under threat as new entrants like OpenAI and Perplexity AI seek to siphon off the search giant's audience with products aiming to help users find what they are looking for more quickly. As Google invests heavily to protect its lead, finding the best way to monetize generative AI will be crucial, said Tomasz Tunguz, a general partner at Theory Ventures. "Feedback loops are incredibly important," Tunguz said. "Having greater visibility into what's working" is essential to success. A Google spokesperson confirmed that "AdSense for Search is available for websites that want to show relevant ads in their conversational AI experiences." Startups iAsk and Liner declined to comment on their relationship with Google. Regulators are increasingly scrutinizing Google's influence over the advertising economy that underpins the open web. Google Search, an industry juggernaut, yielded more than $198 billion in revenue in 2024, almost 60% of Alphabet's annual sales. In April, a federal judge found that the Alphabet unit violated antitrust law in the markets for advertising exchanges and tools used by websites to sell ad space, known as ad servers. The company has argued that it has a dominant position because its tools are effective and easy to use. Now, with its burgeoning business relationships with startups, Google aims to profit even if its share of the search market dwindles. Running experiments with AI startups will allow the company to test the waters for advertising in the relatively new world of AI chats. Generative AI startups are increasingly exploring advertising-based business models to offset the high costs of answering users' questions with artificial intelligence. For example, before inviting users to ask follow-up questions, iAsk shows ads below its AI-generated responses. In addition to Google, startups such as Koah Labs have begun allowing brands to serve ads to the chatbot audience. AI search startup Perplexity, one of the most prominent players using AI to reshape internet services, establishes relationships directly with brands that want to buy ads on the site, according to a person familiar with the matter. Perplexity allows brands to sponsor follow-up questions to users' queries. To keep its product accessible for students, a key audience, Liner has focused on delivering a select number of ads tailored to users' searches. People using generative AI tend to click on fewer links -- which may pose challenges for startups seeking to make money through online advertising, where brands often pay per click. But Liner users, who come to the site for research, often click on links, and the longer queries allow for more targeted advertising, Chief Executive Officer Luke Jinu Kim said in an interview. With its advertising, Liner is trying to achieve something that is "more like a very early version of Google search ads," Kim said, adding that he hopes the site will show a small number of ads that are highly related to the query. 2025 Bloomberg L.P. Distributed by Tribune Content Agency, LLC.

Google's ad empire expands into AI chat

Google has started showing ads in chatbot conversations through its AdSense for Search network, expanding its digital advertising strategy as generative AI becomes more prevalent. The tech giant conducted tests with AI search apps like iAsk and Liner last year and earlier this year before rolling out the feature to AI startups in 2025, according to Bloomberg. Google's ads business remains highly lucrative, maintaining a 90% share of the global search market, according to Statcounter. However, the emergence of rival AI chatbots like OpenAI's ChatGPT is threatening Google's dominance by providing consumers with quicker and more succinct information. A Google spokesperson confirmed that "AdSense for Search is available for websites that want to show relevant ads in their conversational AI experiences." This move is seen as a strategic effort to stay profitable as the search market evolves. Research: Google's AI eats your clicks Google's collaboration with AI startups has raised concerns among regulators. Two US senators recently questioned Google about its partnership with Anthropic, citing competition concerns. The Department of Justice also noted that Google's search engine market monopoly is supporting its AI strategy, while its use of AI is further enhancing its search market monopoly. In April 2025, a US judge ruled that Google violated antitrust laws by "willfully acquiring and maintaining monopoly power" in the advertising technology market. A further hearing will be required to determine potential remedies.

Google begins its deployment of ads in AI chatbot conversations

As an Amazon Associate, we earn from qualifying purchases. TweakTown may also earn commissions from other affiliate partners at no extra cost to you. With the gradual shift from traditional search engines to AI chatbots, it was inevitable for tech companies to explore ways to monetize AI chatbots through digital advertising. That time appears to be upon us, with Google's ad network beginning to display ads in chatbot conversations. Credit: Getty Images As reported by Bloomberg, Google's AdSense network began testing AI-based ads last year on apps including iAsk and Liner. Since then, Google's AdSense for Search network has expanded to include generative AI conversations, a move that seeks to consolidate its position as a leader in search, AI, and digital advertising. "As Google invests heavily to protect its lead, finding the best way to monetize generative AI will be crucial," said Tomasz Tunguz, a general partner at Theory Ventures. Given the high cost of LLM queries, the subject of monetization for AI startups is a perplexing one. Perplexity AI, a key competitor in AI search, operates on a model that establishes direct relationships with brands to advertise on the platform. To contrast, Google's model operates on a programmatic scale, utilizing an automated, data-driven system for buying and selling ad space in real-time. How advertising affects the chatbot experience remains the key factor for users. Perplexity, for example, allows brands to sponsor follow-up questions to certain queries. iAsk, before inviting follow-up questions, displays ads below its AI-generated responses. Liner is described to deliver a "select number of ads tailored to users' searches". While the current advertising models are relatively noninvasive, the future of digital advertising in a landscape molded by AI remains uncertain. It's certainly possible that the difference between real and sponsored outputs will remain clear. But like AI-generated video, text, or imagery - it might soon become harder to distinguish.

Google is testing place ads in AI chatbots - Phandroid

AI chatbot ads are here -- just not where you'd expect them. According to Bloomberg, Google has started testing AdSense ads inside some third-party AI chatbots, including iAsk and Liner. The program began earlier this year and is currently limited to developers who opt in. Still, it's a clear sign of what's coming: chat, but monetized. Until now, most bots avoided ads. But the reality is, AI isn't cheap to run. Even OpenAI doesn't expect to be profitable until 2029. Smaller startups need a way to make money fast -- or they won't survive. This is where Google steps in. By offering its existing ad tech, chatbot makers can now plug into AdSense just like websites do. A spokesperson confirmed that AdSense for Search is available "for websites that want to show relevant ads in their conversational AI experiences." It's not the first time Google's done this. Last year, they started showing ads in Search's AI-generated Overviews. This move just extends the same idea into the chat space. It might feel weird at first -- ads inside private conversations -- but this was always going to happen. Running a chatbot isn't cheap. OpenAI reportedly won't break even until 2029. So if the leader in the space is still burning money, smaller startups have no chance without a revenue plan. Wherever people spend time, ads eventually follow. And in the age of AI, conversations are just another surface.

Is your AI-generated answer actually an advertisement? Google is turning chatbots into ad real estate

ChatGPT caught lying to developers: New AI model tries to save itself from being replaced and shut downWhat once felt like a private and intelligent digital dialogue may soon echo with the clinks of commerce. According to a report from Bloomberg, in a quietly unfolding move, Google has started placing ads inside conversations with third-party AI chatbots, transforming once ad-free exchanges into subtle marketing zones. The initiative, part of Google's AdSense for Search programme, is now being expanded after initial testing with AI startups like iAsk and Liner earlier this year. These aren't the flashy banner ads of yesteryear, nor are they the sponsored snippets seen on traditional Google searches. Instead, the ads blend directly into the flow of AI conversations -- strategically designed to appear helpful, even conversational. But make no mistake, they are still ads. This shift reflects a pressing need at Google's end. As more users opt for generative AI platforms like ChatGPT, Claude, or Perplexity to answer their questions, Google's once unshakable dominance in search advertising has started to waver. The classic search engine, long the goldmine of targeted ads, is no longer the only place people seek information. So, Google is following the users -- right into their AI-powered chats. A Google spokesperson confirmed the development to Bloomberg, noting that AdSense for Search is now being made available to websites with conversational AI experiences. Translation: your chatbot's next answer might come with a side of subtle sales pitch. At its core, this marks a deeper shift -- one that could change the very nature of how we interact with AI. If ads begin appearing mid-conversation, will users trust their AI assistant the same way? Will advice, suggestions, or product mentions be genuinely helpful -- or commercially motivated? What's unfolding is not merely a technical update but a philosophical reckoning. Google's move may well set a precedent for other tech giants. As advertising infiltrates generative AI experiences, the blurred line between unbiased help and targeted influence is set to get even murkier. The next time your chatbot offers a product recommendation, you might have to wonder: was that insight... or an ad?

Advertising Enters the Chat: Google Integrates Ads Into AI | PYMNTS.com

Google has begun integrating ads into chatbot conversations, marking a significant evolution in its digital advertising strategy as generative AI reshapes how users search for information online. According to Bloomberg, the tech giant has extended its AdSense for Search program -- which traditionally places ads on third-party websites' search results -- to also appear in interactions with AI chatbots. This shift follows a series of trials conducted with AI startups such as iAsk and Liner, Bloomberg reported, citing individuals familiar with the matter. This move comes as Google faces mounting competition from AI-driven search alternatives like OpenAI and Perplexity AI. These platforms promise faster, more conversational answers, challenging Google's long-held dominance in online search. In response, Alphabet Inc., Google's parent company, is ramping up efforts to maintain its leadership in advertising, which remains the company's primary revenue engine. Search advertising brought in over $198 billion in revenue for Google in 2024 -- comprising nearly 60% of Alphabet's total sales, per Bloomberg. But as user behavior changes in response to conversational AI tools, Google is adapting by embedding ads directly into these new interfaces. "AdSense for Search is available for websites that want to show relevant ads in their conversational AI experiences," a Google spokesperson confirmed. The strategy reflects broader industry experimentation with monetizing generative AI platforms. For instance, iAsk now places ads beneath AI-generated answers, often prompting users to continue the conversation after viewing sponsored content. Similarly, Koah Labs has begun working with brands to deliver advertisements tailored for chatbot users. Read more: On Witness Stand, Google CEO Challenges DOJ's Proposed Remedies In Search Monopoly Case While some AI startups are tapping into Google's ad ecosystem, others are forging their own paths. Perplexity AI, according to Bloomberg, has established direct relationships with advertisers and allows them to sponsor follow-up queries on its platform. Liner, which focuses on students and research-oriented users, displays a limited number of highly relevant ads -- an approach reminiscent of Google's early days, CEO Luke Jinu Kim told Bloomberg. "Feedback loops are incredibly important," said Tomasz Tunguz, general partner at Theory Ventures, speaking to the importance of refining ad strategies in the evolving landscape. Despite regulatory scrutiny and a recent federal ruling that found Alphabet violated antitrust laws in digital advertising markets, Google continues to invest in emerging ad formats. The company argues its tools remain dominant because of their effectiveness and ease of use. As users interact more with AI-driven tools and click on fewer traditional links, the advertising landscape will likely shift further. Still, companies like Liner see opportunity in longer, more nuanced user queries, which can provide fertile ground for well-targeted ads. With its latest expansion, Google is not only responding to the current wave of AI innovation -- it's laying the groundwork to ensure advertising remains a profitable part of that future.

Beyond Search: Google Eyes AI Chatbots as New Ad Territory | PYMNTS.com

Google must be careful not to degrade the user experience and may need to explore selective ad categories or offer an ad-free option to avoid losing ground to AI-native competitors. Google is testing the placement of ads inside AI chatbot conversations in an aggressive move to protect its bread and butter: search ads. According to Bloomberg, Google has begun embedding ads directly into conversations with artificial intelligence (AI) chatbots from startups, including iAsk and Liner. It's an expansion of Google's AdSense for Search network and sets the stage for a new era of AI-powered monetization. In the pilot, Google inserts contextual ads into real-time chats between users and AI chatbots. By doing so, the company ostensibly seeks to defend its turf since search ad revenue comprises 56% of its total revenue, according to its first-quarter earnings results. In April, Google held a 90% market share in search, according to Statcounter. The picture is reversed when it comes to AI chatbots: Google Gemini comes in at 2.3% compared to OpenAI's ChatGPT at 84.2%. This is a classic example of Google facing the "innovator's dilemma," a concept conceived by the late Harvard Professor Clayton Christensen that explains why successful companies often fail when facing disruptive technologies. According to the theory, incumbents facing disruptive technologies often offer existing customers improved versions of what already works. Smaller companies that use the new technology serve niche or small markets first before improving and becoming good enough for the mainstream -- and take over from the incumbent. "They do face the innovator's dilemma today," said Nick Cummings, an analyst at investment research firm Intelligent Investor, during a recent podcast episode. "They're being attacked from multiple angles with large language models ... that are using AI to provide a better experience in some respects than their traditional search engine." "Google is experimenting and integrating their own AI as well but it's a huge risk to the business," Cummings added. In March, Intelligent Investor made a call to sell its holdings in Google parent company Alphabet. Kaveh Vahdat, president of marketing firm RiseOpp, told PYMNTS that Google's move is "less about short-term monetization and more about safeguarding its long-term control over the discovery layer of the internet." As users shift to AI chatbots, Vahdat said, Google risks losing the behavioral data and ad real estate that underpin its business model. "By preemptively commercializing chatbot interactions, it is trying to reassert that control. But doing so at a time when its market dominance is already under antitrust scrutiny could accelerate regulatory pressure." Google's dominance in search -- which generates of nearly $200 billion in ad revenue -- is under attack. Rival generative AI chatbots from companies like OpenAI and Perplexity AI are attracting users with more fully formed responses compared to traditional web links and search result pages, which is a core source of Google's ad revenues. By extending AdSense into chatbot experiences, Google hopes to keep advertisers within its ecosystem -- even if user behaviors shift. Google's partners, iAsk and Liner, already show ads embedded within or beneath their chatbot responses, according to Bloomberg. For example, iAsk displays sponsored content before prompting users to continue the conversation, while Liner tailors ad placement to student research queries -- a strategy it says increases click-through rates compared to other generative AI platforms. However, Google should tread carefully because users expect an ad-free experience in AI chatbots compared to traditional search. "Ads, in general, make the consumer experience worse," said Daniel M. McCarthy, associate professor of marketing at the Robert H. Smith School of Business, University of Maryland, College Park. "So while they surely are looking at ads as a way to defray the enormous costs of LLM training and inference, in a bid to improve their possibly negative contribution margin, they are highly incentivized to not cede further market share to their already-dominant competitors," McCarthy told PYMNTS. One mitigating practice would be to introduce ads in categories where consumers would be expecting them, such as shopping and travel, McCarthy added. Another idea would be for Google to introduce an "ad-free toggle" for a fee to give users a no-ads experience, he said. Google isn't the only one experimenting with ads in chatbots. Perplexity AI, for example, is working directly with companies that want to place ads in its AI chatbot, according to Bloomberg. It already has a program that lets publishers sponsor follow-up questions related to a query.