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How Ads Are Taking Over AI Search

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Over the years, we’ve all become comfortable seeing ads in our Google search results. Scrolling past sponsored results before getting to relevant content is the accepted norm. And in cases where we come to Google with an intent to buy, the ads could even be the answer we are searching for.

But our expectations when it comes to AI search are different. We don’t expect to be presented with an ad for an upcoming AI training course when we ask ChatGPT, “How can I best leverage AI to make my SEO campaigns more effective?” And we certainly don’t expect that we will need to wade through sponsored content before we can read over ChatGPT’s responses.

But the time is coming when ads will play a front-and-center role in AI search. In fact, you can expect that 2026 will be the year that AI search will go fully ad-driven. Consequently, companies need to ensure they have a solid AI search optimization strategy to deliver as ads take on a more prominent role.

Why ads are being elevated by AI search platforms

The shift in the AI search landscape is driven by the fact that the companies behind AI search, like all companies, need to make a profit. The use of their platforms is skyrocketing, which drives up their costs. 

Reports show that OpenAI, which makes ChatGPT available, loses money on its $200-per-month ChatGPT Pro subscription. And paying users make up only 5 percent of the 800 million total people on the platform.

Shifting to an ad strategy that capitalizes on all of its user activity is the only thing that makes sense for ChatGPT and other AI search platforms. Some people may see it as a corruption, but it is actually a natural progression. It’s the revenue model that has driven success in the digital age, from Google to YouTube to Facebook and beyond. 

Users shouldn’t be surprised that the shift is coming. It is beyond inevitable; it’s unstoppable. Google has already briefed ad agencies on how ads will work for users in AI Mode.

And companies shouldn’t ignore the implications. Platforms like ChatGPT, Perplexity, and Google AI Mode are becoming the place where companies connect with buyer-ready traffic. The companies that adapt now by developing an AI search optimization strategy will own the flow of attention in the AI search space.

How ad-enhanced AI search will be different from traditional search

With traditional search, paid ads and organic results are distinct. With AI search, however, the distinction gets blurry, with ad placements shifting toward more conversational answers rather than embedded or link-based ones. 

For instance, a user who asks ChatGPT for the “best CRM for small businesses” could see an answer sponsored by Salesforce or HubSpot in the AI’s response, instead of a link marked as “sponsored.” Alternatively, ChatGPT could include brand mentions in its answers, similar to how it currently works, but some of those mentions would be more subtle, paid placements.

A brand new ecosystem is emerging where organic visibility and paid placement collide in the answers AI platforms provide. A strong AI search optimization strategy opens the door to those answers, which guide users in their decision-making.

The new ecosystem shifts ad strategies from a focus on individual keywords to a focus on full conversation context. It’s a fundamental shift that will replace traditional link-based search with answer-based search.

When someone asks Google AI Mode for help with identifying financial management software, for example, the response is not simply links to studies, guidance, or sales pitches. It kicks off a conversation with AI about the volume of sales and expenses that need to be addressed, the other platforms the software will need to integrate with, and the budget that is available for the software.

The companies driving this shift have figured out that the future of search is as transactional as it is conversational, so they are re-engineering their platforms and refining their business models to take advantage of the change. The new model will embed ads for relevant products within the answers provided by AI-driven search tools.

How to develop an AI search optimization strategy

To develop an effective AI search optimization strategy, companies need to acknowledge how search behavior has changed. Simple keywords — “budget vacations,” “roofers near me,” or “how to learn an instrument” — still matter, but they’re only the starting point because AI search resolves intent, not keywords. Searches leveraging the power of AI are conversational: “I’m planning a vacation for my family, which includes me, my husband, two kids, and a dog, and need help finding a place near the mountains where we can make great memories and spend less than $500/day.”

AI platforms are analyzing the conversation, sifting incredibly rich intent data from the conversation, and providing answers. It will trigger ads when it believes the person asking the question needs exactly what you are selling, even when the keywords that ad would have traditionally targeted don’t enter the conversation.

In this new ecosystem, companies are no longer competing for clicks. They are competing to be the answer, which means their brand must be trusted, and their AI search optimization strategy must produce content that AI will cite as authoritative. Succeeding isn’t only about being found; it’s about being chosen as the answer.

Many of the tactics companies adopted to improve their rankings with traditional search will continue to be valuable. Experience, expertise, authoritativeness, and trustworthiness (EEAT) are critical for AI visibility. But now, LLMs, rather than search engines, become the gatekeepers. AI search optimization strategies expand your focus from SEO into GEO (generative engine optimization), which requires a nuanced approach tailored to serve LLM retrieval methods and other key AI functions.

Overall, earning a place in AI search results requires authority building. The battle for visibility now involves competing for citation credibility, not rankings. The companies that win will be those that produce authoritative and well-structured content that appeals to AI as the optimal source for answers.

About the author

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Nikki Lam

Nikki Lam is a seasoned SEO expert who has helped elevate the online presence of global brands like Adobe, Lenovo, Samsung, Under Armour, Levi’s, T-Mobile, Office Depot, American Airlines, Western Union, SoFi & more. As Head of SEO at NP Digital, she oversees the Organic Search offering, leads a growing team of passionate search strategists, and assists in pitching and formulating award-winning SEO campaigns for NP’s growing roster of enterprise and Fortune 1000 clients. Nikki's impact extends globally, as she collaborates with NP Digital's growing global Earned Media teams to ensure consistency, foster innovation, nurture collaboration, and uphold operational excellence.