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Google set to bring ads in search AI Overviews

(Reuters) - Google will start testing search and shopping ads in its AI-generated answers in the U.S., the Alphabet-owned company said on Tuesday, days after it rolled out the AI Overviews feature widely at its annual I/O conference.

Ads will appear in a 'sponsored' section within AI Overview based on the query's relevance and information, , the company said in a blog post.

Google has been looking to extend its dominance beyond traditional search advertising to emerging generative AI tech.

It aims to boost its ad sales, a major source of revenue for the tech giant, by integrating AI in its search engine.

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Google reported a 13% increase in advertising sales, reaching $61.7 billion in the first quarter ended March 31.

The company said it would continue to test and learn new ad formats, getting feedback from advertisers.

Last week, at its I/O conference, Alphabet showed how it is building on AI across its businesses, including a beefed-up Gemini chatbot and improvements to its prized search engine.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)