Imagine searching online for a new laptop. Instead of opening ten different websites, you ask Google a few questions. You explain your budget, what you need the laptop for and which features matter most to you. Google’s AI Mode helps you compare options, understand the differences and explore products that match your requirements.
Now imagine seeing sponsored product recommendations directly inside that AI-powered search experience.
This is where search is heading, and Google has started testing another step in that direction.
On 16 October 2026, reports confirmed that Google had begun testing ads in AI Mode for users who connect supported apps through its Personal Intelligence feature. The experiment is limited, and it should not be confused with a confirmed global rollout. Search Engine Land reported the development.
For people who use Google Search, this raises questions about privacy and the future of online advertising. For businesses and marketers, it creates another reason to pay attention to how customers discover products and services through AI.
As the founder of Digi Ustad, where we work on SEO, AEO, GEO and digital marketing, I believe this development deserves attention. However, understanding what Google has actually announced is just as important as understanding what it could mean for the future.
Let’s break it down in simple language.
What exactly is Google testing?
Google has been developing AI Mode to help people explore complex questions through a more conversational search experience.
Instead of typing a short phrase and opening individual websites, users can ask detailed questions, follow up with additional information and receive AI-generated responses that help them explore their options.
Google has also introduced Personal Intelligence, a feature that can connect supported Google apps to provide more personalised experiences. Depending on availability and settings, these connections can include Gmail and Google Photos.
Previously, the connected-app experience in AI Mode was introduced as an ad-free experience. Google has now begun testing ads for users who opt into connecting their apps through Personal Intelligence.
The important detail is that this is a limited test, not an announcement that ads are rolling out globally to every AI Mode user.
Google has not announced that every business can immediately run a new type of AI Mode campaign or that all advertisers have access to special AI advertising placements.
For now, businesses should treat this as an important development to monitor rather than a new advertising channel they can automatically access.
Why is Google experimenting with ads in AI Mode?
To understand the decision, think about how people shop online.
A few years ago, someone looking for running shoes might type “best running shoes” into Google. They would see search results, shopping listings, reviews and advertisements.
Today, the same person might ask AI Mode:
“I’m looking for running shoes for everyday training. I need something comfortable, durable and suitable for a beginner. Can you help me compare a few options?”
This is a different kind of search. The person is not simply looking for a website. They are asking for help with a decision.
AI can organise information, compare alternatives and help people narrow down their choices. That creates opportunities for advertising to become part of the shopping journey.
A sponsored product recommendation could appear alongside information that helps the user evaluate their options.
For advertisers, the potential attraction is straightforward: reaching people while they are actively researching a product or service.
However, we should be careful not to assume that AI Mode ads will automatically outperform traditional search ads. That will depend on factors such as placement, relevance, competition, cost and the user’s willingness to act.
The test is an opportunity for Google to learn how advertising works within a more conversational search experience.
What is Personal Intelligence, and why does it matter?
This is the part of the announcement that deserves particular attention.
Personal Intelligence allows supported Google services to use information from connected apps to provide responses that are more relevant to an individual user.
For example, someone planning a holiday might connect relevant apps so Google can help them consider information related to their plans. A person shopping for a product might receive recommendations that better fit their preferences and circumstances.
The feature is optional. Users choose whether to connect supported apps, and Google provides controls for managing those connections. Availability depends on the account, feature and supported region.
With the new advertising test, Google says information associated with these connected experiences may help personalise ads shown in AI Mode.
This does not mean advertisers receive access to a user’s private inbox or photo library.
Google says ads will not be based directly on the contents of Gmail or Google Photos, and advertisers will not be given direct access to those connected apps. Google also says sensitive categories, such as health, religion and sexual orientation, will not be used to personalise ads.
There is an important distinction here: the information itself is not being handed to advertisers, but insights from connected apps may influence the advertising experience.
That is worth understanding before enabling connected features.
Does this mean Google will read every email to show advertisements?
This is a question people may naturally ask when they hear about Gmail, Photos and advertising being discussed together.
The answer needs careful wording.
Google’s explanation is that ads will not be based directly on the contents of a user’s Gmail inbox or Google Photos library. Advertisers will not have direct access to those apps.
At the same time, Google says summaries, excerpts or inferences from connected content apps may be used to personalise the Search experience, including ads, when users enable the relevant connections.
That means it would be inaccurate to claim that advertisers can simply open a customer’s Gmail inbox or view their private photographs. It would also be too simplistic to say connected information can never influence advertising.
The distinction matters.
If you value personalisation, connecting apps may help make some search experiences more relevant. If you prefer to keep your personal information separate from Search, review the connected-app settings before enabling the feature.
You can choose which supported apps to connect and manage those connections through the relevant Google settings.
My advice is simple: understand what you are enabling, review the available controls and make the decision based on your own privacy preferences.
What does this development mean for digital advertisers?
For digital marketers, the most important question is whether AI Mode could become another place to reach potential customers.
The answer is that it could create additional opportunities, but the current test does not guarantee new campaign options for every advertiser.
Imagine a company selling fitness equipment. A potential customer asks AI Mode to compare exercise bikes for a small apartment. If advertising appears within that experience, a relevant sponsored product could potentially reach the customer while they are considering a purchase.
The same general principle could apply to other industries as AI-powered search develops.
However, businesses should not immediately change their advertising budgets based on an experiment.
Instead, advertisers should continue building strong campaigns, testing relevant messages, understanding their audiences and tracking conversions. They should monitor official Google Ads announcements for any new eligibility requirements, placements or campaign controls.
If Google expands these advertising experiences, marketers who already understand their customers and measure campaign performance will be in a better position to evaluate the opportunity.
The goal should be to follow the evidence rather than assume every new feature will deliver better results.
Will AI Mode ads replace traditional Google Search ads?
I would not make that assumption.
Traditional search ads serve an established role in Google’s advertising ecosystem. They can connect a business with people searching for specific products, services or solutions.
AI Mode provides a different kind of interaction. Users can ask more detailed questions and continue a conversation rather than making a single search and immediately choosing a result.
These experiences could develop alongside each other.
For example, a person might discover a business through a traditional search ad, research alternatives in AI Mode and later visit the business’s website directly.
Another person might use AI Mode first and then conduct a more specific search before making a purchase.
Customers do not always follow one predictable path. This is why businesses should avoid relying entirely on a single advertising placement or source of website traffic.
A balanced strategy considers paid advertising, organic search, useful website content, brand visibility and the overall customer experience.
Does SEO still matter when AI-powered search is growing?
Absolutely.
At Digi Ustad, I believe businesses should not treat every new AI development as a reason to abandon the SEO work they have already invested in.
A company still needs a useful website, clear service pages, accurate business information and content that answers customer questions.
Consider a local plumbing company. If someone asks an AI search tool for help finding a plumber, the company benefits from having a website that clearly explains its services, service areas, experience and contact details.
Strong SEO foundations can help search engines discover and understand that information. They also help potential customers decide whether the business is right for them.
This does not guarantee that the business will appear in every AI-generated answer or advertisement. Search results depend on multiple factors, and AI-generated responses can vary.
But it does mean businesses have practical work they can do now.
Review important pages. Fix technical problems. Publish useful and original information. Make service details clear. Ensure that the website works well on mobile devices. Monitor organic performance and enquiries.
These improvements remain worthwhile even as search interfaces change.
What should businesses do next?
My recommendation is to focus on three areas.
First, strengthen your website. Make sure your key service and product pages explain what you offer, who you serve and how customers can take the next step. Remove outdated information and address technical SEO issues.
Second, review your advertising strategy. Keep measuring campaign costs, qualified leads and actual conversions. Do not increase spending simply because a new advertising experiment has been announced.
Third, follow official updates. Google may expand, modify or discontinue tests as it learns from users and advertisers. Check official Google Ads and Search announcements before making decisions based on new features.
For businesses working with a digital marketing agency, ask for a clear explanation of what is available now, what remains experimental and how performance will be measured.
That is a better approach than paying for a service based on promises of guaranteed placement in AI search.
My final thoughts as the founder of Digi Ustad
Google’s decision to test ads in AI Mode shows that AI-powered search and digital advertising are becoming more closely connected.
It also highlights a conversation that businesses and users need to have about personalisation, privacy and how advertising fits into the search experience.
For users, the key is understanding the connected-app settings and deciding what information they are comfortable allowing Google services to use.
For advertisers, the key is to monitor the experiment without assuming that every business can immediately access the same opportunities.
For website owners, strong SEO fundamentals and helpful content remain important parts of building online visibility.
At Digi Ustad, we follow these developments because they affect how businesses may reach customers in the future. Our approach is to help businesses make informed decisions about SEO, AEO, GEO and paid advertising based on what is available, what can be measured and what genuinely supports their goals.
AI search is evolving, but successful digital marketing still starts with understanding people. The businesses that pay attention to their customers, provide useful information and adapt carefully will be better prepared as the search landscape continues to change.
Sources
- Search Engine Land: Google begins testing ads in AI Mode for users with Personal Intelligence enabled
- Google: Personal Intelligence comes to AI Mode in Search
- Google Search: Updates on Personal Intelligence and AI Mode
