From the beginning, ads have been one of Google’s main sources of revenue. The company placed such importance on this sector that it strove to dominate it with an iron fist. Google’s position in the AdTech industry even led to a recent antitrust ruling against the company in the US, pending further developments. Meanwhile, Google appears to be testing ways to combine its classic ads with another technology in which it has become a prominent name: AI.
According to recent reports, Google is exploring new ways to monetize the rise of AI chatbots. The news could mean you’ll soon see ads while chatting with these tools.
As reported by Bloomberg, Google’s AdSense has begun offering the ability to display ads directly within user chats with some third-party AI chatbots. The Mountain View giant has reportedly been doing this since the beginning of this year. The move opens up a whole new landscape for the implementation of targeted ads in the age of artificial intelligence. Until now, these services have maintained a chat window free of ads and promotions.
Google has reportedly already begun testing the feature with some AI-powered search startups, such as iAsk and Liner. Initial tests appear to have paved the way for a broader rollout. However, the system is currently only available to certain third-party chatbots that have chosen to integrate Google’s advertising solution.
A Google spokesperson told Bloomberg that “AdSense for Search is available for websites that want to show relevant ads in their conversational AI experiences.” This statement clearly outlines Google’s strategy, which is to enable chatbot developers to incorporate targeted advertising into their chat interfaces.
A new way to monetize: making AI profitable
It’s no secret that AI is not only expensive to develop but also difficult to monetize in the short term. We could say that the top AI-focused companies have been working at a loss on their AI development for years to gain a strong market position, with an eye toward real long-term monetization. According to reports, OpenAI doesn’t expect to be profitable until at least 2029, for example. Considering that we’re talking about the parent company of ChatGPT, the world’s most popular AI chatbot, other companies could find themselves in an even worse situation.
That said, Google participates in segments of the tech industry where OpenAI isn’t. Therefore, the Mountain View giant could leverage these technologies to try to achieve profitability more quickly. Starting to offer ad implementation in third-party AI chatbots, just as Google has been offering it for websites and apps for many years, seems like a smart way to go. The firm has also been integrating AI throughout its products and services. The most powerful features are available after paid subscriptions, providing another incentive to attract more potential subscribers.
Furthermore, the popularity of AI chatbots is growing rapidly. Of course, the internet search and advertising giant couldn’t resist the opportunity to join the trend and profit from it.
Google has already experimented with ads in Search AI Overviews
In fact, this isn’t Google’s first foray into advertising within AI experiences. Late last year, the company began showing ads in Search’s AI Overviews—those helpful AI-generated summaries that appear at the top of search results for certain queries. This initiative already hinted that Google is actively looking for new ways to integrate advertising into its own AI-powered products as well.
