Google adds AI shopping ads

Google is pushing ads, shopping and lead capture deeper into its AI search products. At Google Marketing Live on May 20, the company introduced Gemini-powered Search ad formats called Conversational Discovery ads, Highlighted Answers and AI-powered Shopping ads. Google said the formats are designed for AI-driven search experiences that offer product guidance and explanations inside Search. (blog.google) The product changes arrive alongside commerce tools that move checkout and merchant interactions closer to Google’s own surfaces. (blog.google) Google also announced Universal Cart, which lets shoppers add items from multiple merchants while using Search, Gemini, YouTube or Gmail, and said new Merchant Center tools will help retailers track performance in AI-driven results. (seroundtable.com) Search Engine Roundtable reported that AI Mode is also adding a Business Agent for Leads and expanding Direct Offers in coming months. ### Where do the new ads actually show up? Google said the new ad formats are built for Search experiences powered by Gemini. In its announcement, the company described Conversational Discovery ads as a way to connect with users through real-time, personalized advice, and said Highlighted Answers and AI-powered Shopping ads would appear in AI-driven search contexts. (blog.google) Search Engine Roundtable reported on May 21 that the formats are tied to Google’s AI Mode, where the company is also bringing shopping ads and lead-generation tools. That places ads inside a conversational interface rather than only alongside a list of blue links. (blog.google) ### What changes in shopping? Google said AI-powered Shopping ads can provide product guidance and transparent explanations. The company said the ads can generate a “custom explainer” for product searches, describing why a product may fit a shopper’s needs. A separate Google shopping update published this week added Universal Cart, which the company called an intelligent cart that works across merchants and services. (blog.google) Google said shoppers can add products while browsing Search, chatting with Gemini, watching YouTube or reading Gmail, and the cart can track deals, price drops and restocks in the background. (seroundtable.com) ### What is the Business Agent for Leads? Search Engine Roundtable reported that Google is bringing a Business Agent for Leads to AI Mode in the coming months. The publication said the tool is part of the same package as shopping ads and an expanded Direct Offers pilot. (blog.google) Google had previously described branded business agents as a way for shoppers to chat with brands directly in Search, functioning like a virtual sales associate that can answer questions and recommend products. The newer leads product suggests Google is extending that approach into qualification and contact capture inside AI conversations. That characterization is an inference based on Google’s earlier business-agent description and Search Engine Roundtable’s report on the new leads feature. (blog.google) ### What do merchants need to do differently? Google said advertisers should have campaigns set up with Performance Max and AI Max to use the new features as they arrive. The company has also spent months promoting structured commerce infrastructure, including its Universal Commerce Protocol and Merchant Center onboarding, to give shopping agents access to real-time pricing, inventory and loyalty information. (seroundtable.com) Google’s own materials frame that work as preparation for “agentic” shopping across Search and Gemini. In practice, the setup requires merchants to keep product catalogs, inventory, pricing and offers machine-readable so Google’s AI systems can surface and transact on them. (seroundtable.com) That is an inference drawn from Google’s descriptions of Merchant Center, Universal Commerce Protocol and Universal Cart. ### What happens next? Google said the new Search ad formats were announced at Google Marketing Live 2026 and that some AI Mode features, including shopping ads, Business Agent for Leads and expanded Direct Offers, are coming in the months ahead. Google’s shopping posts this week also said Universal Cart and related Merchant Center tools are rolling out across its services. (blog.google 1) (blog.google 2) (blog.google 3)