Facing significant antitrust challenges, Google is shifting its strategy to incorporate advertising into generative AI chatbots. This move is aimed at maintaining its revenue streams, especially following a ruling that labeled it as a monopoly. As generative AI usage grows, competitors may seize the market share, prompting Google to adapt by expanding its AdSense network to include ads in third-party chatbot conversations. Analysts warn that this approach could be risky given the current legal and market environment.
Google knows its long-dominant search funnel is leaking. If conversational AI becomes the way people discover, decide, and buy, Google needs a revenue engine ready before regulators or rivals box it out.
According to reports, the Google AdSense network expanded to include chatbot conversations earlier this year, after it tested the capability last year. Particularly, according to anonymous sources, it is working with AI search startups iAsk and Liner.
This move comes as Google grapples with the fallout of not just one, but two, antitrust trials in which it was found guilty of establishing "monopoly power."
Incorporating ads into generative AI is a 'risky move at a fragile moment,' noted Ria Delamere, chief technology and product officer at Traject Data.
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