Google and OpenAI are experimenting with advertising models inside their AI chatbots, signaling a shift in how these companies plan to monetize their advanced technology platforms beyond subscriptions.
Quick Summary – TLDR:
- Google is testing ads in its Gemini AI chatbot and AI Mode, according to a company executive.
- The company is exploring new and innovative ad formats for AI-driven experiences.
- OpenAI is also considering ads in ChatGPT, using its memory feature for personalization.
- The push reflects a broader industry move to monetize AI products in the face of changing search and user interaction patterns.
What Happened?
Google has begun experimenting with advertisements inside its AI experiences, including the Gemini AI chatbot and AI Mode. Robbie Stein, Vice President of Product at Google, revealed these developments during an appearance on the Silicon Valley Girl podcast, where he acknowledged that users are beginning to see early ad placements within these systems.
The move reflects Google’s wider effort to integrate advertising into its AI tools while maintaining user utility, even as traditional search ads face disruption from AI-driven queries.
🚨 Google plans to introduce ads in Gemini and other AI products. pic.twitter.com/SZxjyqpfuP
— Indian Tech & Infra (@IndianTechGuide) November 3, 2025
Google’s Shift to AI Monetization
For years, Google’s core revenue has come from ads in Search, but the rise of generative AI has started to alter how users find information. To stay ahead, Google has been integrating AI features across its ecosystem, such as AI Overviews and AI Mode in Search, and expanding Gemini’s role into devices like smartwatches and TVs.
Robbie Stein explained the company’s perspective, saying:
He also mentioned that this is just the beginning, hinting at “new and novel ad formats” for AI environments. “It’s early days in finalizing kind of how ads might appear in these systems,” he added, leaving open the possibility for entirely new forms of digital advertising suited for AI conversations.
Stein also emphasized that ads are not going away, stating:
OpenAI’s Take on AI Advertising
Google isn’t alone in this strategy. OpenAI is reportedly working on its own advertising model for ChatGPT, according to a report from The Information. The company is exploring ways to use ChatGPT’s memory feature to display targeted ads. This memory allows ChatGPT to remember user preferences and past interactions, which could offer advertisers a highly personalized ad delivery method.
This kind of ad personalization, however, comes with potential trade-offs for users who may have to choose between a tailored experience or an ad-free one.
OpenAI CEO Sam Altman has not ruled out advertising. In an earlier public appearance, he said:
Why This Matters?
These developments mark a critical step in the commercialization of generative AI tools. Both Google and OpenAI are exploring advertising not just as an add-on but as a core part of their business model for AI. This shift could redefine how users interact with these platforms and raise important questions around ad transparency, privacy, and user control in AI conversations.
For developers and businesses, this opens a new frontier in digital marketing. The move from search-based to conversation-based ad delivery could reshape how companies reach audiences online.
SQ Magazine’s Takeaway
I get why Google and OpenAI are doing this. Building AI tools is expensive, and ads are the most proven way to fund free products. But we’ve seen what happens when ads get too pushy or intrusive. If ads inside chatbots start interrupting conversations or using personal info too aggressively, that could really turn people off. I’m curious to see how they’ll balance revenue with respect for the user experience. Let’s just hope they don’t turn our chatbots into billboards.
