(Reuters) – Google will start testing search and shopping ads in its AI-generated answers in the U.S., the Alphabet-owned company said on Tuesday, days after it rolled out the AI Overviews feature widely at its annual I/O conference.
Ads will appear in a ‘sponsored’ section within AI Overview based on the query’s relevance and information, , the company said in a blog post.
Google has been looking to extend its dominance beyond traditional search advertising to emerging generative AI tech.
It aims to boost its ad sales, a major source of revenue for the tech giant, by integrating AI in its search engine.
Google reported a 13% increase in advertising sales, reaching $61.7 billion in the first quarter ended March 31.
The company said it would continue to test and learn new ad formats, getting feedback from advertisers.
Last week, at its I/O conference, Alphabet showed how it is building on AI across its businesses, including a beefed-up Gemini chatbot and improvements to its prized search engine.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)
