Google Pushes AI Shopping Features in Search and Gemini Chatbot

Google is adding a way for consumers to buy things while searching for AI-powered answers in search and its Gemini chatbot, as part of a plan to more directly monetize consumers’ use of AI.

Alphabet is testing new ad formats in Google Search’s AI Mode that will allow retailers and other advertisers to offer products there, the company said in a letter to the advertising community on Wednesday. Users can now also purchase products from Etsy and Wayfair within Gemini, the company said. A new feature called Direct Offers in AI Mode will allow brands to offer discounts to potential shoppers.

“We’re not just bringing ads to AI experiences in Search; we’re reinventing what advertising is,” said Vidhya Srinivasan, Google’s vice president of ads and commerce.

Now that consumers have gotten into the habit of using artificial intelligence, tech companies are working to monetize chats beyond selling subscriptions. Ads and commerce will help fund the billions of dollars of capital AI companies plan to spend on infrastructure. Spending by Google, Amazon, Meta Platforms and Microsoft is planned to reach $650 billion in 2026.

OpenAI recently started testing ads on its ChatGPT chatbot in the US, claiming advertising is the fastest way to make money from users who haven’t purchased a premium subscription. ChatGPT maker and rival Perplexity AI has also introduced AI features designed to change the way people shop online.

Earlier this year, Google began integrating AI agents into the shopping experience with a new method that standardizes payments and digital identity, Srinivasan said. The company has partnered with companies like Shopify, Target, and Walmart for this protocol, which helps consumers pay directly through Google’s AI products.

Citing the potential for an AI agent to shop on users’ behalf, Srinivasan said it “helps lay the foundations for a future where all commerce experiences can be seamless and effective.”

Still, Google’s push into AI shopping has faced scrutiny from Washington; Sen. Elizabeth Warren said in a letter that she is concerned about consumer privacy and pushing consumers into higher spending. Google has previously said it prohibits sellers from showing higher prices on Google than on their websites.