Google announced on Tuesday that it will begin experimenting with incorporating search and shopping advertisements into its AI-generated responses in the United States. This move comes after the wide release of the AI Overviews feature at its yearly I/O conference, as stated by the Alphabet-owned entity.
Advertisements will be displayed in a ‘sponsored’ area within the AI Overview, selected based on the relevance to the query and the information provided, as outlined in a company blog post.
Google is taking strategic steps to maintain its leading position in search advertising while branching into the burgeoning field of generative AI technologies. Integrating AI into its search engine is part of its strategy to enhance advertising sales, a pivotal revenue stream for the corporation. Google reported a significant 13% rise in advertising revenue, totaling $61.7 billion for the quarter ending March 31.
The tech giant has expressed its intention to persist in experimenting with new advertising formats while gathering feedback from advertisers.
At its I/O conference last week, Alphabet showcased its advancements in AI across its various business sectors. This includes significant enhancements to its esteemed search engine and the more powerful Gemini chatbot.