Google expands AI Mode ads as search revenue shifts

Google announced plans to add more ads to its AI Mode search feature, as the AI summaries reduce traditional ad revenue. The company will expand sponsored links and roll out AI Mode ads internationally. Google's AI Mode answers queries directly on the search page, causing "zero-click searches" that hurt its pay-per-click advertising business. The company will swap sponsored links throughout user sessions and expand ads to international markets, though it warned investors this won't be a quick fix. Google currently earns less from AI Mode ads than traditional search ads due to fewer advertisers, and it will take time for advertisers to understand the benefits. Despite the impact on its major revenue driver, Google will continue its AI investments, resulting in more ads for users.