Google to expand ad placement in AI search as revenue growth slows

Google is set to scale advertising within its AI-driven search products, including AI Overviews and AI Mode, as the company seeks to improve monetization on its conversational search platform. The move comes as Alphabet reported that search revenue growth has slowed, partly due to the migration of queries from traditional search to AI-integrated formats that were previously less lucrative.

Google senior executive Philipp Schindler confirmed that the company will take its AI monetization footprint global, expanding ad placements that were previously restricted. In the U.S., Google is testing multi-turn ads that adapt based on the progression of a user's conversation. The company stated that user research indicates positive reception to sponsored content within these AI surfaces.

The strategic shift has raised concerns among publishers and content creators, who rely on traffic referrals from search engines. As Google increasingly provides direct, AI-generated answers with integrated ads, fewer users are expected to click through to external websites. So far, Google has not addressed how these changes will impact organic traffic to third-party publishers.

Beyond search, Alphabet continues to prioritize heavy infrastructure investment. The company reported $51.4 billion in capital expenditure for the third quarter and signaled that spending is expected to rise significantly in 2027 to support its ongoing AI and cloud computing initiatives.