Google expands AdSense into AI amid rising regulatory pressure

Google has begun embedding advertisements within AI chatbot conversations as part of its AdSense network, strengthening its hold on the digital advertising market.

A company spokesperson confirmed that ‘AdSense for Search is available for websites that want to show relevant ads in their conversational AI experiences.’ The move comes as AI startups increasingly adopt advertising models to manage the steep costs of operating generative AI systems.

The introduction of ads into chatbot interactions continues Google’s two-decade-long strategy of extending its ad dominance to new technologies and user interfaces.

From revolutionising online ads with AdWords in 2000 to expanding into mobile and video, Google has consistently adapted its approach to maintain market leadership.

Integrating ads into AI chatbots marks the latest step, as the company responds to shifts in how users engage with digital content. This is especially vital as its core search ad business faces growing competition from AI-first platforms like Perplexity.

Google’s timing is also shaped by mounting regulatory pressure. In April 2025, a federal judge ruled the company had violated antitrust laws in key advertising markets, threatening its control of the digital ad ecosystem.

By establishing its ad presence in emerging AI markets, Google is seeking to secure new revenue streams and embed its standards before regulations catch up. This strategic pivot helps Google maintain relevance even as its traditional business faces legal challenges.

For AI startups, the introduction of advertising is driven by economic necessity. Generative AI systems incur high operational costs, making monetisation through ads increasingly attractive.

Partnering with Google offers immediate access to a global advertiser base and proven monetisation tools. Companies like iAsk and Liner have embraced the model, with Liner’s CEO describing their ads as an early version of Google’s own search ads.

As the AI market rapidly grows, projected to exceed $800 billion by 2030, establishing sustainable revenue models has become a priority.

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