AI’s Ad Awakening: From Search Reinvention to Sponsored Chat

AI is rapidly reshaping how people discover products and information and in turn how brands show up in those moments. Google is testing new ad formats within its AI powered Search experience (AI overview) that place sponsored retail results directly into conversational responses, clearly labelled but embedded within high intent queries. Features such as direct offers allow brands to present timely incentives including loyalty benefits or bundles at the point of decision, influencing the consideration of the user. At the same time, OpenAI has begun testing ads within ChatGPT for users on its free tiers, positioning advertising as a way to fund broad access to advanced AI models while maintaining strict controls around trust, data use and sensitive topics. 
 
What This Means 

These developments mark the beginning of AI as a mainstream media channel. Search is starting to merge with conversational interfaces. For platforms, advertising is the most proven way to scale these environments. For brands, it introduces a new type of high-intent moment where influence can be within the answer, not around it. For users, early signals suggest a willingness to accept relevant ads in exchange for free access. 

What This Means for Irish Advertisers 

For Irish brands and agencies, this is an early but important opportunity. Conversational environments will demand a stronger focus on context, relevance and structured data rather than simply bidding on keywords or buying placements. This is highlighting the need for further investment into SEO/GEO. In turn, ensuring that product feeds are kept accurate and on-page content is simple and direct, this can influence and increase the chance that your content/products appear in these AI generated recommendations. 

As these formats evolve, we will be closely monitoring testing phases in the markets that they are available. We will continue to assess how AI driven discovery fits within performance and brand plans and prepare for a landscape where the most valuable impression may not sit in a feed but inside a conversation or overview. 
 
Sources:  
WARC 
Google Ads & Commerce Blog