Overview
- Google has officially launched 'AdSense for Search' to include ads within AI chatbot conversations, partnering with startups like iAsk and Liner.
- The move is part of Alphabet's strategy to maintain its digital advertising dominance as generative AI reshapes search and information discovery.
- Generative AI startups, including Koah Labs and Perplexity AI, are adopting ad-based models to offset the high costs of providing AI-generated responses.
- In April 2025, a U.S. federal judge ruled that Google violated antitrust laws in advertising exchanges and ad servers, intensifying regulatory scrutiny.
- Google Search ads generated $198 billion in revenue in 2024, accounting for nearly 60% of Alphabet's total revenue, highlighting the stakes of adapting its ad model for AI-driven platforms.