My Hands-On Review: Ads in Google’s AI Mode – What I Found in Early 2026

Over the past few weeks, I’ve been diving deep into Google’s AI search features, triggered by the November 25, 2025 report on PPC News Feed: “Ads Now Appearing in Google AI Mode Results”.

That article highlighted the first sightings of paid Google Ads inside AI Mode (the Gemini-powered conversational search interface), shared by experts like Greg Sterling, Brodie Clark, and Barry Schwartz. Early examples were on local queries like HVAC repair, with sponsored placements integrated into or below the AI response.

I’ve gone through extensive testing across various queries to see how this is playing out now, in January 2026. Here’s my personal review and findings.

The Current Status: Ads Exist, But Limited and Targeted

• Yes, ads are appearing in AI Mode — but only in specific cases.
• They are always clearly labeled “Sponsored” (Google maintains strict transparency).
• Placement: Typically at the bottom or contextually integrated, often as local service cards.
• Primarily on high-commercial intent, local queries (e.g., “HVAC repair near me,” “emergency plumber”). This matches the initial November 2025 sightings.

Where I Didn’t See Ads

• On informational or troubleshooting queries like “water leaking from HVAC” or “why is my AC dripping water”:
  
  • AI Mode shows detailed responses with organic link cards only (e.g., articles from Haier, Sam’s Air Control, Bajaj Finserv, or similar helpful sources).
  • No “Sponsored” sections at all  just earned visibility from strong SEO and content.
• Standard Google Search results (outside AI Mode) behave as usual: prominent YouTube videos, Reddit threads, and blogs ranking organically for how-to queries.

Why the Difference?

Google prioritizes user experience:

• Informational queries → Focus on helpful, ad-free organic content (videos, forums, blogs).
• Commercial/local queries → Opportunity for relevant sponsored suggestions.

As of early 2026, ads in AI Mode remain in testing/gradual rollout in the US (per Google’s official statements from late 2025). Not every user or query triggers them yet.

Implications for PPC and SEO Professionals

1. For Advertisers:
   
   • New high-intent inventory is emerging in conversational AI.
   • Eligible via existing Search, Performance Max, or Local campaigns — no special setup needed.
   • Potential for rising CPCs as competition grows, but great for capturing deeper research moments.
2. For SEO:
   
   • Organic rankings still dominate informational queries in AI Mode.
   • Getting featured in those link cards (via quality content) drives massive trust and traffic — for free.