Google is reinventing advertising for the AI era, launching a suite of new tools at Google Marketing Live 2026 that integrate Gemini-powered ads directly into the AI mode experience in Search and YouTube. According to Dan Taylor, Vice President, Global Ads at Google, the company has been testing ads in AI mode in the United States for a year and is now expanding capabilities for Indian businesses.
AI Mode Monetisation: Rethinking Search Ads
"We're reinventing ads for this new era of search to help both answer and inspire all at once," Taylor said during a media briefing, as reported by The Hindu BusinessLine. The new ad formats are designed to make ads look and feel like natural answers within the conversational AI experience. Taylor argued that "the best ads are really just answers," reflecting a shift from traditional search ads to AI-integrated placements.
Earlier in March, Taylor noted that advertising placed next to, above, below, or within AI Overviews monetises at the same approximate rate as traditional search result ads. Additionally, integrating Gemini into Google's ad quality stack reduced the rate of irrelevant ads by 40 per cent, according to the company.
New Tools for Indian Businesses
The announcements came during Google Marketing Live 2026, where Google introduced several AI-powered tools tailored for the Indian market. Among them:
- Business Agent for Leads: A Gemini-built tool now available in beta in India that places a brand agent directly inside an ad to chat with users and capture interactions as leads.
- YouTube BrandStack: An automated solution for campaign planning, buying, and measurement, conceptualized and built in India.
- AI Max for Shopping: A tool to optimise shopping ad performance.
- AI Brief: Likely an AI-generated briefing tool (details not expanded in source).
- Retention Only Mode in Performance Max: A feature focusing on customer retention.
- Ask Advisor: A marketer-facing tool.
Roma Datta Chobey, Managing Director, Connected Consumer Commerce, Google India, stated: "With 86 per cent of surveyed online Indians turning to Google Search and YouTube, Indian businesses have a tremendous opportunity to meet consumers where they are—and we are enabling that with Gemini." She emphasised that Gemini now acts as the engine for growth, moving beyond marketing automation to marketing intelligence.
Consumer Behavior and Impact
Taylor highlighted how conversational AI is changing consumer behavior. According to Google's data from India, 84 per cent of people reported faster decisions and 87 per cent cited more confident decisions when using AI mode. "It really comes back to how consumer behavior is changing," Taylor said.
| Metric | Value |
|---|---|
| Faster decisions (India, AI mode) | 84% |
| More confident decisions (India, AI mode) | 87% |
| Reduction in irrelevant ads via Gemini | 40% |
| Online Indians using Google Search/YouTube | 86% |
These trends underscore Google's push to embed AI deeper into its advertising ecosystem, positioning Gemini as the core intelligence behind ad delivery. The new tools aim to help businesses capture leads and manage campaigns more effectively in a search landscape that is becoming increasingly conversational.
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