Alphabet Inc., the parent company of Google, has begun embedding advertisements into real-time AI chatbot conversations a bold move aimed at protecting its dominant position in digital advertising as generative AI reshapes online search.
Google’s latest push involves extending its AdSense for Search network, traditionally used to monetize search results on third-party websites, into chatbot platforms developed by AI startups like iAsk and Liner. This new integration shows Google’s urgency to monetize AI-native experiences as it faces disruption from new AI-first search engines.
AI Startups like iAsk and Liner Partner with Google’s AdSense
Earlier tests conducted with select startups, including iAsk and Liner, paved the way for this new advertising strategy. These platforms now display ads within conversations powered by AI, mimicking how Google search ads have historically worked but now inside dynamic chat interfaces.
This shift comes amid mounting competitive pressure from OpenAI, Perplexity AI, and other generative AI players that threaten to siphon off users from Google’s traditional search engine. For instance, Perplexity now allows advertisers to sponsor follow-up questions, offering a new way to engage users within AI-generated answers.
Monetizing AI: The New Frontier for Google and Startups
As digital habits evolve, users are clicking fewer links when using AI-based search tools — challenging the conventional ad-click revenue model. AI search platforms are now exploring alternatives. For example, iAsk presents ads after initial answers, while Liner shows limited but highly targeted ads aligned with user intent.
Liner CEO Luke Jinu Kim described their approach as a “very early version of Google search ads,” noting that their student-focused audience tends to engage more deeply with relevant suggestions during research tasks.
Regulatory Scrutiny and Long-Term Strategy
Google’s expansion into chatbot advertising also unfolds against a backdrop of growing regulatory scrutiny. The company generated $198 billion from search ads in 2024, nearly 60% of Alphabet’s total revenue. However, a federal judge recently ruled that Google violated antitrust laws related to its advertising exchanges and web ad tools.
While the exact revenue potential of chatbot ads remains uncertain, Google’s latest move signals its intention to stay at the center of digital advertising , regardless of how users search.
Ads Meet AI in the Battle for Search Dominance
As AI-native platforms grow in popularity, Google is recalibrating its strategy to remain dominant in a changing landscape. By embedding ads within AI chats, Alphabet is not just defending its ad empire but also adapting its business model to the future of search. Whether this strategy wins over users and regulators remains to be seen — but the AI advertising race is officially on.
About The Author
