In short. Google tests paid placements below and within AI Mode responses, with sponsored labels and rollout limits that vary by format.

Definition: Ads in Google AI Mode are paid placements below or within responses in Google's conversational search experience. As of 17 October 2026, Google's announcements describe advertising tests and pilots, with placement depending on relevance.

Key facts

Google's May 2025 announcement introduces tests of ads below and integrated into AI Mode responses.
The Google Ads launch roundup specifies English in the US for those tests.
Google's February 2026 update describes a retailer ad format below organic shopping results, labeled “Sponsored.”
Google's May 2026 announcement adds tests of Conversational Discovery ads and Highlighted Answers, both with an AI explainer and a sponsored label.

Where can ads appear?

Google's original announcement describes two positions: below an AI Mode response and integrated into the response. Its example concerns someone asking how to build a small business website with limited resources. Google describes a website builder ad as a possible next step after the guidance.

The February update describes organic shopping recommendations selected for relevance to the query, followed by a tested ad format showcasing retailers that sell those products. Its illustrated flow places the ad below the organic results. Google also reports similar tests in travel.

The labels documented in that flow and in the Direct Offers announcement are:

Sponsored
Sponsored deal

“Sponsored deal” identifies the illustrated Direct Offers placement, a Google Ads pilot for presenting offers directly in AI Mode.

What are the rollout limits?

The Google Ads launch roundup describes AI Mode ad tests available in English in the US. It gives a separate rollout description for ads in AI Overviews, the AI-powered responses discussed alongside AI Mode in that announcement.

Google's May 2026 update continues to describe new AI Mode formats as tests and Direct Offers as a pilot. A complete, updated country and language list for every AI Mode ad format is not provided in these announcements.

Which campaigns and newer formats does Google describe?

Google's keyword matching documentation describes broad match as allowing ads on searches related to a keyword. The original eligibility announcement names existing Google Ads campaign types: Performance Max, Shopping, and Search campaigns with broad match, including AI Max for Search campaigns. It describes these advertisers as eligible for ads in AI Overviews and AI Mode.

The May 2026 announcement describes Conversational Discovery ads as creative tailored to a person's specific question. Highlighted Answers can appear in an AI Mode recommendation list when an ad meets Google's relevance and quality criteria. Both tested formats pair advertiser creative with an independent AI explainer that synthesizes product or service information, and both carry a “Sponsored” label.

For Direct Offers, Google's January announcement describes retailers setting offers in campaign settings. Google uses AI to decide when an offer is relevant to display. The initial pilot focuses on discounts.

FAQ

Can my existing campaign be eligible?

Google's eligibility announcement names Performance Max, Shopping, and Search campaigns with broad match, including AI Max for Search campaigns. Your campaign's eligibility and an individual ad's appearance remain subject to the relevant rollout and placement conditions.

How can I recognize a paid placement?

Google's format announcement specifies “Sponsored” labels for its new AI Mode ad tests. The separate Direct Offers pilot illustration uses “Sponsored deal.”

Sources

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