From Search Engine To Decision Engine: How Google’s AI Commerce Play Rewrites The Customer Journey

Jersey City, N.J., February 12, 2026

Google is expanding artificial intelligence capabilities across Search, introducing advertising and shopping formats that appear directly within AI-generated responses, according to company announcements.

The updates signal changes in how commercial content is presented to users and how advertisers interact with Google’s search ecosystem.

Google expands AI commerce within Search

Google shared updates about new AI tools for shopping and ads on their official blog. They said that AI-powered search results can now show things like product summaries, side-by-side comparisons, and paid ad spots.

The features are being introduced within AI-powered search environments, including AI Mode in Search and Google’s Gemini interface.

How AI-integrated ads and shopping results appear

Under the updated system, Google’s AI models generate responses using indexed web information, structured merchant feeds, and advertiser inputs. AI-generated outputs may display product recommendations, pricing information, and labeled sponsored placements.

Google said advertisements appearing within AI-generated responses will remain clearly marked.

The company has positioned these formats as part of its evolving search and advertising experience.

Advertisers and merchants most affected

Advertisers, retailers, and merchants using Google’s advertising products and shopping feeds are among the most directly affected participants.

Search advertising has historically depended on keyword auctions and ranking positions. AI-generated interfaces introduce different presentation mechanics, where algorithms synthesize information before displaying results.

Industry reporting has noted that advertisers may need to adjust optimization strategies. Search Engine Journal reported that AI-integrated formats could influence how brands manage visibility and engagement metrics.

Implications for search advertising dynamics

The introduction of AI-integrated advertising formats changes how commercial messages appear within search interactions. Sponsored placements may be embedded within conversational responses rather than shown exclusively as separate units.

Google executive Vidhya Srinivasan said AI-driven environments require “reinventing what an ad is,” according to MediaPost’s coverage of Google’s advertising strategy.

Industry observers say the shift reflects broader experimentation with AI-mediated discovery and decision interfaces.

Industry context and platform shifts

Google’s updates align with wider technology industry efforts to integrate generative AI into search, advertising, and commerce systems. Major platforms are deploying AI-driven interfaces that modify how users retrieve information and evaluate products.

Analysts have suggested that AI-generated responses may influence user interaction patterns, including browsing and purchase behavior, though long-term effects remain uncertain.

Fact vs. speculation

Fact: Google has expanded AI-generated search and commerce features, including advertising formats within AI Mode, according to official company announcements and product updates.

Speculation: The long-term impact on advertiser performance and consumer behavior will depend on adoption patterns and measurement frameworks, as discussed in AdGully’s industry analysis.

Why It Matters

This update could make online shopping faster and simpler. Users can discover, compare, and buy products in one AI-powered interaction, while advertisers and retailers need to rethink how they stay visible and connect with customers. For B2B companies, this means AI can also influence enterprise buying decisions and how they reach key decision-makers. AI is now shaping not just what people see, but how they make decisions online.

Pranali Shelar