At Google Marketing Live 2025, Google quietly made one of the biggest changes to how search works — they introduced something called AI Mode. It’s a new way of searching that feels more like chatting with a smart assistant than typing into a search bar. Powered by Gemini, Google’s AI now gives you full answers instead of just links, right at the top of the page.
And in between those answers? Ads.
These are called AI Mode Ads, and they show up right inside the AI-generated results. They’re not off to the side or clearly marked in a box. They’re part of the flow – meant to feel more helpful than interruptive.
The big shift here is how ads are chosen. You’re not targeting AI Mode directly (yet). Instead, Google picks ads from your existing Search or Performance Max campaigns based on how relevant they are to the user’s question. It’s less about exact keywords, and more about how well your content fits the intent.
Right now, there’s no special setting to control this. You can’t turn it on or off. And there’s no separate reporting for AI Mode placements either, which means you might be getting clicks from it — without even realizing it.
But make no mistake, this is a major shift. Your ads could now show up inside the most visible, most read part of Google: the answer box itself.
Right now, AI Mode is only live in the U.S., but Google has made it clear that more markets are coming soon.
Why AI Mode Ads Matter More Than You Think
At first glance, AI Mode Ads might seem like just another placement. But the truth is, this isn’t a small tweak, it changes where and how people see your ads.
AI Mode isn’t your usual search page. When a user types something in AI Mode, they’re not just getting a list of links. Instead, Google shows a fully expanded, richer layout with images, videos, and AI-written content that gives context to the query all in one view. It feels more like chatting with a smart assistant than searching the old-school way.
Even better (or more complicated), the conversation doesn’t stop there. Users can ask follow-up questions, and Google continues the chat. That means your ad might show up not just once, but as part of an ongoing, dynamic search experience.
This changes what visibility really means. Instead of hoping someone scrolls down to see your ad, you’re now part of the main content area – where users are actively looking, tapping, and reading.
But there’s a catch.
Right now, you won’t see “AI Mode” broken out in your campaign data. If your ad shows up there, it’s reported just like a normal Search click. No label. No filter. Nothing.
And because of how some of these clicks are routed, you might even see them show up as “Direct” traffic in analytics which makes performance harder to track.
So yes, these ads matter more than they seem. They’re not on the sidelines. They’re showing up where attention lives. And your reports haven’t caught up yet.
How Much Control Will You Really Have Over Ads in the AI Era?
That’s the question on a lot of marketers’ minds: If ads are being placed inside AI-powered experiences, how much control do we really have left?
Right now, the control isn’t gone but it’s definitely shifting.
The copy that appears in AI Mode Ads still comes from your active campaigns, Search and Performance Max. That means your headlines, descriptions, and creative assets still matter. You can write them. You can review them. You can lock certain ones in place.
But what you can’t do (yet) is control how or where they show up in AI Mode. You won’t see a preview of how your text blends into the AI’s answer. You won’t know if it appears during the first user query or in a follow-up. It’s happening in a black box and you only see the outcome after the fact.
Targeting works the same way: you’re still setting audiences, exclusions, and signals. But systems like Google’s new AI Max – a more automation-heavy version of Performance Max — are clearly moving toward full input-output models. You give goals, assets, and signals… the rest is handled for you.
And with AI Mode layered on top, this becomes even more hands-off. Your campaigns are no longer just running on a search page. They’re operating in a conversatio, one that adapts, expands, and doesn’t always follow the old keyword logic.
So what’s next?
We might see more advertiser-facing controls soon. Maybe even reports that tell you when an impression happened inside AI Mode. Or tools that let you tune ads specifically for conversational formats.
But today? You’re giving Google the raw material and hoping the algorithm uses it well.
Can Your Brand Voice Survive in AI Mode?
One of the biggest concerns with AI-generated ads is tone. If Google’s systems are writing or tweaking your ad copy, how do you make sure it still sounds like you?
The thing is, AI Mode Ads don’t create brand-new text from scratch at least not yet. They pull from the assets you’ve already uploaded. So if your brand voice is strong, clear, and consistent in your existing headlines and descriptions, there’s a good chance it’ll come through.
But here’s where it gets tricky.
AI systems are trained to write in a “safe” tone, neutral, generic, and built not to offend. That’s fine for utility, but it can make your brand sound bland. If your voice is playful, bold, or slightly offbeat, you’ll probably need to work harder to make sure it survives the system.
There’s also the risk of AI rephrasing or reshuffling your message inside the interface. And since there’s no preview of how your ad shows up in AI Mode, you might not realize something feels off until after it runs.
Where is this headed?
We might see new tools that let brands upload voice guidelines or train custom AI models on their tone. Or maybe more manual review options will show up for AI-heavy placements.
Until then, the best move is to treat every asset like it could be dropped into an AI-powered answer box – because it might. Your headlines, images, even CTAs should feel on-brand the moment they’re created.
What Does AI Mode Ads Mean for Ad Performance?
So, how well do AI Mode Ads actually perform? Right now, it’s hard to say, mostly because we’re flying a bit blind.
Since Google doesn’t break out AI Mode performance separately in your reports, you can’t see exact impressions, clicks, or conversions from that placement. Everything just rolls into your regular Search or Performance Max results. That means if your CPA drops or your CTR improves, it might be because of AI Mode… or not. You just don’t know for sure.
Still, there are a few things we can assume.
First, visibility is likely higher. Ads placed inside rich, AI-powered answers are right where people are paying attention. No need to scroll, no ad blindness – they’re in the content, not beside it.
Second, engagement could go either way. These ads might feel more helpful and contextually relevant, which is great. But if users start to feel like they’re being sold to inside a trusted answer, they might ignore them altogether. We just don’t have the data yet.
What we do know is that Google is betting big on this format. They’re already testing new video tools, creative automation inside Performance Max, and predictive models through AI Max. The trend is clear: fewer manual inputs, more AI-optimized outcomes.
The takeaway?
If performance is going to be increasingly tied to placements you can’t fully see or control, the quality of your inputs, creative, copy, targeting signals – matters more than ever.
Will AI Mode Ads Kill Manual Campaign Management?
This is the part that makes some PPC experts nervous – and honestly, it’s understandable.
AI Mode, along with tools like Performance Max and the newer AI Max, is built to make things smoother. Less setup, fewer manual decisions. You set the goal, upload your assets, and the system handles the rest. It sounds efficient and a lot of it is.
But here’s the trade-off: you don’t see everything anymore. The controls you’re used to keyword-level bidding, structured ad groups, custom audiences, exclusions – they’re either buried or gone. Instead, you’re working with a system that makes real-time creative and targeting decisions on its own.
So does that mean the role of the PPC expert is fading out?
Not really. It’s just… shifting.
Yes, some classic tasks are being handled by AI now. That includes things like keyword research, asset rotation, and even budget pacing. But this isn’t about replacing humans, it’s about giving them new responsibilities.
You’re no longer just the campaign builder. You’re the strategy brain behind it. The one feeding better inputs, writing smarter prompts, building stronger asset libraries, and spotting gaps the machine might miss. And maybe most importantly the one explaining to clients or teams what the AI is doing, and why it matters.
New tools need new skills. Things like creative QA, AI behavior monitoring, prompt testing, and deeper analytics are quickly becoming part of the PPC job description. And those aren’t things you can automate easily.
So no, manual campaign management isn’t dead – it’s just evolving. And the people who learn to guide the system, not just operate it, are going to be the most valuable in the room.
How Should PPC Teams Adapt to the AI Mode Era?
If AI is doing more of the heavy lifting, then what should PPC teams focus on now?
The short answer: stop thinking like button-pushers and start thinking like input designers.
In this new setup, your job isn’t just to launch and tweak. It’s to train the system well with better data, better assets, and better creative direction. AI Mode and tools like AI Max can do a lot, but they still rely heavily on what you feed them.
Here’s what that looks like in practice:
- Get obsessed with creative: If your assets are vague, generic, or outdated, AI can’t fix that. Strong visuals, sharp headlines, and clear CTAs are still everything – even more so when you’re not choosing where they show up.
- Start writing like a prompt engineer: Whether it’s naming your assets, writing descriptions, or setting campaign goals, the more clarity you give, the better the system performs.
- Monitor results in a new way: You won’t always see where your ads showed up or why, but you can track signals, patterns, and shifts in performance. New metrics might not exist yet, so PPC teams need to get creative about how they measure success.
- Think long-term, not reactive: With less real-time control, it’s better to plan campaigns in structured waves – test, analyze, adjust, repeat — instead of micromanaging every change.
And maybe most important of all: learn fast, share faster. This space is moving quickly. Teams that document what works (and what doesn’t) are going to have a serious advantage.
AI won’t replace skilled PPC professionals. But teams that rely only on old playbooks, those might get left behind.
What’s Next: AI Mode and the Future of Search Advertising
No one has the full roadmap, but it’s clear that AI Mode isn’t just an experiment – it’s becoming a core part of how Google Search works. As AI-driven results replace traditional SERPs, ads are starting to appear inside these conversational layouts. That means paid and organic content are merging in ways we haven’t fully seen before. The line between “ad” and “answer” is getting thinner, and that brings both opportunity and risk for brands.
Going forward, we’ll likely see new ad formats built just for AI surfaces, better tools for controlling messaging inside AI conversations, and (hopefully) reporting that actually shows what’s happening. Until then, the smartest thing PPC teams can do is stay flexible: test early, write stronger inputs, and think long-term.
AI may handle more of the execution, but strategy, creativity, and brand understanding? That’s still on you.