Google is testing ads in third-party AI chatbot conversations

Google started placing ads inside chat conversations with some third-party AI assistants, according to a Bloomberg report, marking another step in its push to monetize AI-powered search alternatives.

Driving the news. Google’s AdSense network — traditionally used for placing ads in search results and across websites — is now running ads within chatbot interactions, according to people familiar with the rollout.

The company reportedly began testing the feature earlier this year with conversational AI search startups iAsk and Liner.

A Google spokesperson confirmed that AdSense is available “for websites that want to show relevant ads in their conversational AI experiences.”

Why we care. Google’s move brings targeted advertising into a new, fast-growing channel: AI chatbots. As users increasingly turn to conversational AI for answers instead of traditional search, placing ads in these interactions ensures brands stay visible where attention is shifting. This also opens up new, highly contextual ad formats that could deliver better engagement and insights than standard web placements.

The big picture. AI chatbots like ChatGPT, Claude, and Perplexity are reshaping how people get answers online – a space historically dominated by Google Search.

Google has responded by integrating its own large language models into products like Gemini and Search.

Last year, it began including ads in its AI-generated overviews on Search results pages.

Between the lines. By partnering with AI startups, Google can capture ad revenue regardless of who owns the search experience.

Liner tailors a small number of ads to longer user queries, a model CEO Luke Jinu Kim likens to an “early version of Google search ads.”

iAsk places ads below AI-generated answers before prompting follow-up questions.

Yes, but. AI-driven platforms often see lower click rates – a challenge for advertising models built on volume and engagement. Still, research-heavy use cases like Liner’s may offer more targeted opportunities for brands.

What to watch. Whether users find ads in AI chats useful or intrusive, and how Google balances monetization with user trust in an evolving AI search landscape.

View the full article