When Google first rolled out its AI Overviews feature, many people wondered: Is this the future of search? Instead of giving a list of blue links, Google now offers quick AI-written summaries at the top of the page. It feels faster. It feels easier. But for businesses and advertisers, a big question remained: Where do the ads go?
If users get their answers right away from AI, would they even see the ads? And if they don’t see ads, how does Google make money?
Fast forward to 2025, and we’re starting to get some real answers. Google has begun testing and showing ads inside AI Overviews. It’s early days, but this move is likely to shape how search looks (and works) in the years ahead. In this post, we’ll break down what’s happening, why it matters, and how it fits into a bigger trend across AI companies.
First, What Are AI Overviews?
If you’ve used Google lately and noticed a quick paragraph answering your question before any links show up – that’s an AI Overview. It uses Google’s generative AI to summarize information from the web into a short and (hopefully) helpful response.
For example, if you search “how to clean white sneakers,” you might see a step-by-step cleaning guide written by AI at the top of the page — even before you see any websites. This is different from how Google worked for the past 20 years, where you mainly got a list of links and had to click around to find what you needed.
Google says AI Overviews are meant to save users time, and based on early reports, people like it. In fact, by early 2025, about 1.5 billion people each month were interacting with AI Overviews in search.
But while it’s great for users, it raised a real concern for Google’s business: if people get answers instantly, do they still click on ads? And if they don’t, how does Google keep making money?
Are Ads Already Showing in AI Overviews?
The short answer is: yes, but it’s just getting started.
Google first talked about this back in May 2024 during their Marketing Live event. They said they were thinking about putting ads into AI Overviews – but in a way that wouldn’t feel too pushy.
Later in 2024, Google started testing ads in AI Overviews on mobile devices in the U.S. Now in 2025, ads have quietly become part of the AI Overview experience, but only when the search shows commercial intent. That’s just a fancy way of saying: if you’re searching for something you might want to buy, like “best shoes for running” or “cheapest hotels in Paris,” Google may show you a few sponsored products right inside the AI-generated answer.
The ads are clearly labeled as “Sponsored” and are meant to match the AI response without being too distracting. You might see them right above or below the AI summary.
In other words, the ads are not gone – they’ve just found a new way to fit in.
Why Is Google Doing This?
One simple reason: money.
Google’s whole business depends on advertising. In fact, in the first quarter of 2025, Google’s parent company, Alphabet, made about $90.2 billion. Out of that, $66.9 billion came from advertising. That’s roughly 75% of their total earnings.
Most of that advertising money still comes from search ads – the little text ads you see when you Google something. Search ads alone brought in over $50 billion in the first three months of 2025.
If AI Overviews made people stop clicking on ads, it would be a huge problem for Google. So instead of fighting the change, Google is adapting. They’re making sure that even as search becomes faster and more AI-driven, ads still have a place.
It’s not just about keeping the money flowing. Ads also fund all the free stuff we use from Google — Gmail, Maps, YouTube, and more. Without strong ad revenue, those products would either get worse or start charging users.
In short, Google can’t afford to lose ads – so they’re finding ways to make ads work within the new AI search style.
What It Looks Like
Let’s say you search for “how to remove wine stains from carpet.”
You’ll likely get a neat little paragraph at the top of your search results with cleaning tips. But now, you might also see a small section right there in the AI Overview offering stain removal sprays or carpet cleaners you can buy – from real brands, with a clear “Sponsored” label.
You still get your answer. But Google gets to show you a few ads without needing you to scroll down the page.
It’s a smart move. Users aren’t forced to click anything, but if you’re already looking for cleaning advice, you might actually want to see a product suggestion. It feels helpful instead of annoying.
What About Other Companies? Are They Adding Ads to AI?
It’s not just Google thinking this way. Across the tech world, AI tools are starting to figure out how to bring ads into their products.
OpenAI and ChatGPT
When ChatGPT first launched, its CEO Sam Altman said he didn’t like ads. He wanted people to pay for the service instead. But now, reality is kicking in. ChatGPT has hundreds of millions of users, and most of them don’t pay.
According to reports, OpenAI expects to start making money from free users soon – and that likely means ads. While no official ads have launched yet inside ChatGPT, it’s clear that OpenAI is working on ways to add them without ruining the experience. This could mean seeing small sponsored suggestions during chats or product mentions in answers.
Perplexity AI
Another AI company, Perplexity, is going even further. They’re launching their own web browser that tracks what you do online to show ultra-targeted ads. That’s right – they’re trying to copy Google’s success by learning as much about users as possible.
It’s a little creepy to think about your AI browser watching your every move, but it shows how valuable ads are for companies trying to grow fast in the AI space.
Microsoft and Bing
Microsoft has already added ads to Bing’s AI chatbot. If you use Bing’s Copilot to search for something, you might see a sponsored hotel, product, or travel site right in the AI answer. Microsoft isn’t shy about it – they know ads are necessary to make AI tools free and available to more people.
What Could This Mean for the Future of Search?
If you’re a marketer, business owner, or just someone who uses Google every day, these changes matter.
Here’s what could happen next:
- More Ads in AI Summaries: Right now, ads in AI Overviews are mainly shown to users in the U.S., but they have also started appearing in some other regions, including parts of Europe.
- Smarter, More Helpful Ads: Instead of random ads, expect to see ads that actually fit what you’re asking about. If you search for “best camping gear,” you’ll probably see ads for tents, backpacks, or boots — not something unrelated.
- New Advertising Formats: Businesses may soon have to adjust how they create ads. Maybe new formats will appear that blend into AI answers more naturally – like mini product cards, quick suggestions, or smart links.
- AI Influencing What You Buy: Just like social media made people discover products they didn’t know they wanted, AI-generated answers could start suggesting products you hadn’t thought of yet. Shopping could become even more seamless – and more impulse-driven.
- Privacy Concerns: If AI tools start tracking more of what we search for, click on, and buy, people might get worried about privacy again. Companies will need to be careful and clear about how they use personal data.
Final Thoughts
The future of search isn’t just about getting faster answers. It’s about mixing real information with relevant ads – in a way that feels natural, not annoying.
Google’s move to add ads to AI Overviews makes sense. They need to protect their main source of money, and they want to keep search free for users. As long as the ads are useful and not in the way, most people probably won’t mind. In fact, if you’re already looking for a product or service, a well-placed ad might even save you time.
Other AI companies are following the same path, even if they started off saying they wouldn’t use ads. It’s clear now: ads are here to stay – even in the world of AI.
If you’re a business, it’s time to start thinking about how your ads might appear in AI search results. And if you’re a user, get ready for a search experience that feels a little different – but still familiar in one important way: ads will be right there alongside the answers you’re looking for.