Google has unveiled a major expansion of personalized advertising directly into its AI shopping tools, marking a strategic evolution in how brands can reach consumers through artificial intelligence-driven experiences. The company announced that its AI chatbot — powered by its Gemini model — will now deliver tailored promotions, exclusive deals and dynamic offers based on real-time user shopping interactions rather than conventional search ads. This development represents one of the most significant shifts in Google’s approach to digital advertising in recent years and signals a new frontier in conversational commerce.

The integration allows advertisers to present discounts, bundles and free-shipping deals within AI-generated responses during shopping queries. Instead of seeing static text ads or sponsored listings, users will receive contextual offers seamlessly embedded in AI dialogues that reflect their immediate interests and intent. Google also introduced a “universal commerce protocol” enabling users to complete product research and transactions within the AI interface itself.

Early retail partners including Walmart, Target, Shopify, Petco, e.l.f. Cosmetics and Samsonite are participating in initial testing, illustrating broad industry interest across categories from household goods to fashion and electronics. Google’s initiative is widely seen as a response to increasing competition in AI-based shopping experiences, particularly from platforms such as OpenAI’s AI tools and Microsoft’s Copilot Checkout — both moving quickly to embed commerce functionality within conversational tech.

Marketing analysts note that this innovation could significantly reshape digital ad strategies. Traditional search advertising — long a cornerstone of online marketing — may see reduced prominence as AI-augmented insights and interactions become central to purchase journeys. Advertisers will need to rethink campaign design to align with conversational AI contexts, optimizing offers and creative messaging for moments when users are actively exploring or ready to buy.

By blending personalized ads into AI shopping tools, Google is seeking to make advertising more intuitive, relevant and timely for consumers while giving brands a powerful way to connect with buyers in increasingly natural, dialogue-driven environments. This shift underscores how AI is not just enhancing performance but redefining the very structure of digital marketing ecosystems.