Google has no immediate plans to introduce advertisements into its Gemini AI chatbot, according to Dan Taylor, the company’s VP of global ads. In an interview with Business Insider, Taylor clarified that despite Gemini’s surging popularity and speculation about potential ad integration, Google is instead prioritizing ad placements within AI-powered search experiences.
Google’s advertising strategy focuses on two key AI search products: AI Overviews (natural language summaries appearing at the top of search results) and AI Mode (an AI chatbot integrated into search pages for in-depth research). The company began introducing ads to AI Overviews in 2024 and later expanded to AI Mode. Taylor emphasized that “Search and Gemini are complementary tools with different roles,” with search designed for discovering information including commercial interests, while Gemini serves as an AI assistant for creating, analyzing, and completing tasks.
The challenge of monetizing AI chatbots remains complex and uncharted territory. Key questions include determining optimal ad placement timing, format design, pricing models, and balancing commercial interests with user trust. In the competitive landscape where Gemini battles OpenAI’s ChatGPT, Microsoft’s Copilot, and Anthropic’s Claude, introducing ads risks alienating users who might switch to ad-free alternatives.
Google’s advantage lies in its 25+ years of search advertising experience and ability to generate revenue from existing products, providing more flexibility than competitors like OpenAI, which faces pressure to demonstrate profitability. Tech analyst Ben Thompson suggested OpenAI’s delay in launching ads “risks the entire company,” noting that early implementation would have allowed time for improvement.
The rivalry intensified when Google released its Gemini 3 AI model to rave reviews, prompting OpenAI CEO Sam Altman to issue a “code red” and redirect resources from planned projects, including an advertising program. Gemini reached 650 million monthly active users according to Alphabet’s October earnings, while ChatGPT reported 800 million weekly users.
Regarding AI search ads, Taylor revealed that over 80% of Google’s advertisers use AI-powered search functionality, primarily through tools like AI Max for Search and Performance Max. AI Overviews have surpassed 2 billion monthly active users, with engagement rates matching traditional search ads. Google is testing Direct Offers, a new ad format allowing personalized discounts for shoppers in AI Mode, alongside upcoming checkout functionality for completing purchases within AI Mode and the Gemini app.
Key Quotes
Search and Gemini are complementary tools with different roles. While they both use AI, search is where you go for information on the web, and Gemini is your AI assistant.
Dan Taylor, Google’s VP of global ads, explained the strategic differentiation between Google’s search product and Gemini chatbot, justifying why ads make sense in search but not yet in Gemini.
We want a good sign that someone is ready to buy before we throw out a sponsored deal to pretty much anyone who’s searching.
Taylor described Google’s cautious approach to ad placement in AI Mode, emphasizing the importance of timing to avoid appearing intrusive and maintaining user trust during conversational AI interactions.
They could have launched the world’s crappiest ads in 2023. By today, in 2026, they would be good. Now, they’re going to have to launch ads, they’re going to suck, and people are going to be like, ‘This sucks, I’ll just go to Gemini.’
Tech analyst Ben Thompson from Stratechery warned that OpenAI’s delay in implementing ChatGPT advertising could backfire, as rushed ad implementation might drive users to Google’s Gemini instead.
Our Take
Google’s restraint on Gemini ads reveals a sophisticated understanding of AI monetization challenges. Unlike traditional search where commercial intent is clear, conversational AI assistants require nuanced approaches to avoid disrupting user experience. Google’s competitive advantage—leveraging existing search infrastructure for AI ad revenue—allows strategic patience that cash-strapped competitors like OpenAI cannot afford. The “first-mover disadvantage” concept is particularly insightful: rushing ads into AI chatbots could alienate users in a market where switching costs are minimal. Google’s testing of contextual ad formats like Direct Offers and its focus on user readiness signals demonstrate a data-driven approach to solving AI monetization. As AI infrastructure costs mount industry-wide, this advertising arms race will define which companies can sustain their AI investments long-term.
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Source: https://www.businessinsider.com/google-vp-says-ads-arent-coming-to-gemini-yet-why-2026-1