Google’s AI Mode – What does it mean for Advertisers?

Google's AI Mode ads are set to scale in the US as we head into the autumn months. After successful testing over the last few months, advertisers using Performance Max, Shopping and Search campaigns with broad match (including AI Max for Search), are eligible to appear in AI Mode. The question facing many UK advertisers is: when will we see AI ads and how will they disrupt the PPC landscape?

AI Mode - A Recap:

• AI Mode is a search engine feature that utilises generative AI to offer conversational responses to user queries.
• Current adoption as of August 2025 sits at 100+ million global users.
• In the UK, ads are not yet available across AI Mode or within the AI Overview itself. However, AI Max will unlock in-response AI Overview ads when they do become available.
• AI Mode ads will only appear below and integrated into the AI Mode response, serving ads based on the entire context of the AI conversation. These will be text or Shopping-based ads.

This new ad format is another example of the transition from granular, keyword-based ads towards a more conversational, thematic basis. Highlighting the need for:

• Richer creative assets (including text) that answer complex questions
• Comprehensive custom segment audiences (including search themes)
• Strong product feed hygiene where relevant

With the variation and volume of search behaviour shifting, Google reiterates the need to show up for potential customers wherever they choose to search. Ensuring ads are tailored to the context in order to avoid frustration. Whilst ads in AI-driven environments will help advertisers stay on top of the changing landscape, there are questions about how users will perceive and interact with these ads. The general assumption is that AI Mode works best for exploratory or question-based searches. This sits further up the funnel than the traditional search terms that most advertisers are bidding on. Raising the question of whether the KPI for success should transition towards a more upper-funnel KPI such as Cost per 1,000 Impressions (CPM).

Before AI ads rollout to the UK market, we are hopeful that Google will comment on accountability of these ads. Particularly about the segments that will be available in reports, alongside the recommended metrics and measures of success to base performance on. As US advertisers scramble to test AI Mode and AI Overview ads, the7stars is testing the validity of AI Max for Search across our clients. With early adoption being key to gaining a first-mover advantage and understand how the future of search will evolve.

Written by Millie Bland, Paid Search Director

AI Mode is a trademark of Google LLC and this article is not endorsed by or affiliated with Google in any way.