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At 25, Google Ads Bets on Generative AI as Search Shifts to Answers

Analysts warn AI answer boxes could compress ad inventory, testing Google’s click-based revenue model.

Overview

  • Google marked the anniversary by promoting new agentic tools that automate campaign optimization and scale creative generation across its ad platform.
  • Recent search pages now feature AI-tailored answers above ads and traditional links, a placement experts say may reduce impressions and click-throughs.
  • Google has begun inserting advertising into AI-generated responses, yet ad-tech executives note a single summary can replace an entire results page of inventory.
  • Publishers express concern that AI summaries lessen the need to visit websites, threatening traffic-dependent business models.
  • Observers argue Google’s Ads infrastructure and reach across Search and YouTube position it to adapt, with Bank of America estimating daily active users up 13% year over year.