Google Launches Personalized Shopping Ads Within Its AI Mode Tool

Google has announced it is introducing personalized advertising for retailers to target shoppers purchasing items through AI Mode.

The advertising pilot, called “direct offers”, will enable advertisers to present exclusive offers to potential shoppers who are preparing to buy items within AI Mode. Brands will be able to choose the relevant offers they want to feature within Google’s “campaign settings” — Google’s Gemini 3 AI model will then use contextual information from shoppers’ conversations, and what they’ve clicked on, to determine when an offer is relevant to display.

The pilot is focused on enabling brands to create discounts for shoppers, but will soon introduce more advertising offers to “help shoppers prioritize value over price alone”, such as bundles and free shipping, the company said. For luxury brands, the ability to target potential customers with personalized offers, such as new member and loyalty programs, could be a lucrative top-of-funnel advertising opportunity.

“Google already elevates the most relevant products to meet your search criteria,” Google said in a blog post announcing the news. “But often, you are only ready to buy if you’re getting a great deal. Now, relevant retailers have an opportunity to also feature a special discount. This helps you get better value and helps the retailer close the sale.”

Google is already piloting the model with Shopify merchants as well as brands, including Elf Cosmetics, Petco and Samsonite. The model is currently only available to US merchants.

Alongside the new advertising model, Google also introduced a “Universal Commerce Protocol (UCP)”, co-developed with Shopify, which the companies said will allow US-based brands to sell directly within Google’s AI Mode. This feature — also available to e-commerce sites that don’t use Shopify — will allow shoppers to research and make purchases through an integrated checkout without leaving their AI chats.

Google also announced a third new feature, launching on Monday, that will allow brands to integrate a branded “business agent” within Google’s AI search. The feature, which is already being used by retailers including Poshmark and Reebok, helps brands customize how shoppers’ product questions are answered in their brand voices.

The past six months have seen a volley of announcements surrounding AI tools and integrated checkouts — OpenAI was the first major AI platform to announce an integrated checkout feature within its ChatGPT chatbot in September. The tech companies behind these tools say that by mimicking a personal shopping agent, this technology will help match consumers with their desired products faster and more accurately, leading to higher conversion and reduced returns.