Google began testing several new AI-generated ad formats in both standard search results and its AI Mode at Google I/O 2026, with AI-generated brand and product ads now appearing below responses to some users' prompts in AI Mode, and the company's “direct offers” ads for discounted products expanding from AI Mode to standard search results. For the new “conversational discovery” format, Google uses Gemini to create ads based on users' prompts by drawing text and imagery from brands' websites and marketing materials, with all ads labeled “sponsored” and advertisers able to use a tool called AI Brief to emphasize or remove phrases. The ads will not appear in Gemini yet but Chief Business Officer Philipp Schindler previously said “a format that works well in AI mode would transfer successfully to Gemini app.”
