Google said AI Max is opening “billions” of previously unmonetized searches to ads, giving Alphabet a clearer path to expand 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 AI Max is helping the company match ads to searches that were too complex or ambiguous for traditional keyword targeting.
AI Max leaves 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 an average 15% lift in conversions or conversion value at a similar return on ad spend, according to the company.
Gemini improves ad matching. Google said Gemini has improved the relevance of Shopping ads for complex queries by about 20%. Gemini can better understand longer, conversational searches, interpret commercial intent, and match those searches with relevant ads. That is helping Google turn more searches into ad opportunities without relying only on exact keyword matches.
Why we care. Google is using AI to expand the number of searches that can carry ads, not just improve existing campaigns. That could create new traffic opportunities, but it also gives advertisers less visibility into how queries are matched.
AI Mode ads take shape. Google also shared new details on how it plans to monetize AI-powered Search experiences.
- The company is testing Highlighted Answers, an AI Mode ad format that places clearly labeled sponsored links inside AI-generated list responses. Google said the format is already showing early user traction.
- Executives also highlighted contextual sitelinks generated from conversations and Direct Offers, which surface promotions during planning journeys. IHG Hotels & Resorts was named as an upcoming partner for Direct Offers.
Search ads stretch beyond keywords. The announcements show how Google is building ad products around intent, not just keywords. As Gemini handles more complex searches, advertiser performance may depend more on product feeds, creative assets and landing pages that give Google enough signals to match ads to user needs.
Bottom line. Google’s clearest message from the call was that AI Max is not just a campaign feature. It is becoming a way for Google to create more ad inventory inside Search.
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