Google integrates Gemini into Search with new AI-driven ad formats

Google has officially announced the introduction of new advertising formats powered by its Gemini model within Search results, marking a significant shift in how brands connect with consumers during the research phase. The company is currently testing 'Conversational Discovery' ads, 'Highlighted Answers', and AI-powered Shopping ads, which are designed to provide personalised product guidance and transparent explanations. These updates aim to integrate conversational, AI-driven experiences directly into the search process, moving beyond traditional static listings.

Central to these new formats is an independent AI explainer, where the Gemini model evaluates and synthesises information about a product or service, displaying that context alongside the advertiser’s creative. This approach is designed to answer specific questions and explain why a product might be suitable, with suggestions appearing while users search or shop online. To ensure transparency and build trust, these new ads will continue to be clearly labeled as “Sponsored” while offering coherent, independent responses to consumer queries.

Google is also expanding its 'Direct Offers' pilot, which was initially launched in January 2026 with partners including Chewy, Gap, and L’Oreal. The company is upgrading this experience to allow more offer types and make it easier for shoppers to act on deals. Direct Offers will now naturally surface in AI Mode responses as users explore options, making deals more instantly discoverable. Google cites that 75% of people report making faster, more confident decisions using AI Mode in Search, highlighting the potential efficiency gains for consumers navigating complex purchases.

In addition to standard search results, Google is introducing 'Business Agent for Leads', a feature built with Gemini that places a smart brand agent inside the ad itself. Instead of requiring users to fill out a static form, individuals can click “Chat” to get instant answers based on the advertiser’s website. This interactive element is designed to turn practical interactions into valuable leads, particularly for high-consideration purchases or services where detailed information is required before commitment.

Advertisers are encouraged to utilise existing Performance Max and AI Max tools to prepare for these changes and take full advantage of the upcoming features. Google stated it will continue to test these formats to ensure they deliver a positive experience for consumers while building a future where marketing is more actionable. The rollout of 'Conversational Discovery' ads and 'Highlighted Answers' is expected in the coming months, though specific availability by region or user segment remains subject to ongoing testing phases.