Google is Quietly Testing Ads in AI Chatbots

Google has built a highly profitable business by placing advertisements in its search results, earning over $50 billion from search ads in its latest quarterly report. However, with AI potentially becoming the primary way people seek information, the company is exploring new advertising models like chatbot ads. For now, though, these ads haven’t been introduced in Google’s Gemini AI.

According to a Bloomberg report, Google started developing a strategy in 2024 to integrate AdSense ads into chatbot interactions. Typically, AdSense ads are found in search results and across various websites. Late last year, Google conducted a limited test of these chatbot ads in collaboration with a few AI startups, including the AI search platforms iAsk and Liner.

The initial testing appears to have been successful, as Google is now opening up AdSense to more chatbot developers. A Google spokesperson stated, AdSense for Search

As more people turn to AI chatbots for information, expanding AdSense into these platforms could help sustain Google’s revenue. While Google’s own Gemini chatbot and AI Mode search currently remain free of ads, that ad-free experience may not last forever.

Google Opens Access to Advanced AI Tools in Bid to Compete with OpenAI

Google is working hard to close the gap with OpenAI, which currently holds a significant lead in the chatbot market, even as Gemini continues to gain traction. In response, Google has made several of its most advanced AI tools—such as Deep Research, Gemini Pro, and the Veo 2 video generator—freely accessible. While there are usage limits on these tools for free users, offering them at no cost is likely a major financial investment for Google.

Running generative AI is extremely costly, with major companies spending billions each year on AI hardware and the energy required to operate it. The challenge is that, so far, neither Google nor OpenAI has successfully turned generative AI into a profitable consumer-facing business. Incorporating ads into free AI tools could help offset some of these expenses. Meanwhile, signs suggest that Google may be planning to broaden its AI subscription offerings, which could provide another path to making generative AI financially sustainable.

Possible “Gemini Ultra” Subscription on the Horizon

Gemini users have started to spot signs that Google’s subscription plans might be evolving. After discovering references to a “Gemini Ultra” plan in the Gemini app, some users have begun seeing prompts suggesting they upgrade to “Gemini Ultra,” a subscription that isn’t available yet. This seems to differ from the previous Gemini Ultra AI models, as Google hasn’t used this branding since the Gemini 1.5 version. Currently, the only available Google AI subscription is Gemini Advanced, priced at $20 per month. With competitors like OpenAI and Anthropic offering plans that cost around $200

Google I/O later this month is likely to shed light on how the company plans to monetize Gemini, but it seems Google is already preparing its strategy. In the near future, free chatbots may feature interstitial AdSense ads unless users opt for premium access, and Google might offer a more expensive version of Gemini services. The days of free access could soon be over.

Read the original article on: Arstechnica

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