Google said AI Max is opening up “billions” of previously unmonetized searches for ads, giving Alphabet a clear path to increasing Search revenue as queries become longer and more conversational.
During Alphabet’s Q2 2026 earnings call last night, Google SVP and Chief Business Officer Philipp Schindler said that AI Max helps the company match ads to searches that were too complex or ambiguous to target keywords.
AI Max is leaving beta. AI Max is now out of beta and has been adopted by more than 500,000 advertisers, Google said. Advertisers using AI Max or Performance Max see a 15% increase in conversion or conversion value for the same return on ad spend, according to the company.
Gemini improves ad matching. Google said Gemini improved the relevance of shopping ads for complex queries by about 20%. Gemini can better understand long-term, conversational search, interpret marketing intent, and match that search with relevant ads. That helps Google convert more searches into ad opportunities without relying solely on keyword matching.
Why do we care. Google is using AI to increase the number of searches that can serve ads, not just to improve existing campaigns. That can create new traffic opportunities, but it also gives advertisers less visibility into how queries are being matched.
AI mode ads are growing. Google also shared new details on how it plans to monetize AI-powered Google Search.
- The company is testing Highlighted Answers, an AI Mode ad format that places clearly labeled sponsored links within AI-generated list answers. Google said the format is already showing early user traction.
- Managers also highlighted contextual site links generated from conversations and Direct Offers, from promotions during the planning journey. IHG Hotels & Resorts has been named as an upcoming Direct Offers partner.
Search ads go beyond keywords. Ads show how Google builds ad products with intent, not just keywords. Since Gemini handles complex searches, an advertiser’s performance may depend heavily on product offerings, creative assets and landing pages that provide Google with enough signals to match ads to user needs.
Bottom line. The clearest message from Google on the call was that AI Max is not just a campaign feature. It’s becoming a way for Google to create more ad inventory within Search.
If the AI doesn’t get it, customers will not.
Track your visibility across AI searches, unlock missed opportunities, and grow your presence where customers are asking questions.
See the visibility of your AI
Search Engine Land is owned by Semrush. We are committed to providing the highest quality of marketing articles. Unless otherwise stated, the content of this page is written by an employee or paid contractor of Semrush Inc.
