Google is weighing ads in the Gemini app. Philipp Schindler, Chief Business Officer at parent company Alphabet, confirmed the move during Q1 2026 earnings. The search giant is first testing ad formats inside AI Mode in Google Search before potentially bringing them to Gemini.
The shift signals how big AI platforms aim to monetize generative AI. Until now, the free version of Gemini has been ad-free, while Google generated revenue from subscriptions like Google AI Pro. That’s according to ghacks.
Google frames ads as the next logical step for AI
Google says ads remain essential to offer AI products at scale. On the earnings call, Schindler argued that ads can provide “valuable and relevant commercial information” when integrated well.
For now, Google is focused on AI Mode in Search—the new AI-driven search experience where users ask longer, more conversational queries powered by Gemini. If ad formats perform there, the same approach could roll out to the Gemini app.
Schindler said:
“We believe the format that works well in AI Mode would transfer successfully to Gemini app.”
Google has not shared a timeline or technical details for ads inside Gemini.
Why ads inside AI chatbots are a minefield
Ads in AI chatbots are sensitive territory because people use assistants differently than traditional search. Users have personal conversations, ask complex questions, and lean on AI for productivity and advice.
That immediately raises questions about:
- transparency of sponsored responses;
- the influence of ads on AI answers;
- privacy and data use;
- the trustworthiness of recommendations.
The line between neutral answers and commercial suggestions can blur—especially if ads are woven deeply into conversations.
Google appears aware of the risks. The company stresses it won’t “rush” monetization inside Gemini.
Chasing a business model for massive AI costs
The ad push comes as Google pours billions into AI infrastructure. In the same earnings call, Alphabet said it expects $180–$190 billion in 2026 capital expenditures, largely for AI data centers and compute.
Those investments need a payback.
At the same time, AI usage is exploding:
- Gemini Enterprise grew 40 percent quarter over quarter;
- AI-related cloud revenue surged nearly 800 percent year over year;
- AI Overviews and AI Mode are driving more searches than ever, according to Google.
Key AI growth metrics for Google in Q1 2026
Alphabet reported strong gains in AI usage and AI revenue during the quarter.
Gemini Enterprise gro…AI Cloud revenueTotal cloud revenueSearch & Other revenue0%200%400%600%800%
The pressure is on to make AI services profitable without relying solely on subscriptions.
Rivals are moving the same way
Google isn’t alone in eyeing ads for AI. OpenAI has explored commercial models around ChatGPT, though it currently leans on paid plans and enterprise deals.
Meanwhile, platforms like Microsoft and Meta have already linked AI to their ad ecosystems.
For Google, the stakes are higher. Advertising remains the company’s core business. Search and other ad products alone generated over $60 billion last quarter.
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What it means for users
Ads could fundamentally change the Gemini experience. The free version may become more lucrative for Google, but users may see more sponsored suggestions or shopping integrations.
Google is already testing “agentic commerce,” where users compare products and complete purchases directly within AI chats in Search and Gemini.
That could turn Gemini from a chatbot into a full-fledged commercial platform.
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