How Google AI Mode Shifts the Search Experience
New AI models and tools are being announced at a rapid pace, making it increasingly difficult to keep up and differentiate one from the next. What is more uncommon, however, are such announcements from the leader in search market share: Google. Google has taken a more cautious approach to AI after launching Google AI Overview in May 2024, when the model made headlines for some dramatic mishaps less than a month after its debut.
While a healthy amount of caution is important when introducing any new technology, slow and steady is not the way to win the AI race. Competitors such as ChatGPT and Perplexity have been making consistent advancements, partially contributing to Google’s search market share dipping below 90% in the last couple months of 2024 — a first in nearly a decade — as is the growth of other traditional engines such as Bing. Perhaps spurred by this decline, Google unveiled its new AI Mode in early March 2025.
What is Google AI Mode?
Google AI Mode is a new way to experience Google search, currently available to users who opt to participate through Google Labs. AI Mode is displayed in Google’s toolbar alongside “News,” “Shopping,” etc, and exists to answer more complex questions that might typically require several searches.
The layout combines Google’s traditional search page with an AI chatbot interface. After an initial search, the view shifts to a conversational format with the search bar at the bottom, similar to other AI chatbots. From there, users can ask follow-up questions and their previous queries will carry over seamlessly. This allows AI Mode to deliver refined results for complex or multi-step searches in a more digestible manner.
When AI Mode is uncertain about its responses, it reverts to the classic Google search results page. For more in-depth or transactional queries, it provides links to relevant publishers that align with the user’s intent.
Google AI Mode features: How does it work and why is it different?
While AI Mode seems similar to Google’s AI Overview, there are some key differences:
- It is powered by a custom version of Gemini 2.0, unique from the one used in AI Overview
- It uses a “query fan-out” technique that interprets multiple related searches concurrently, then brings results together for a more comprehensive answer
- It enables conversational follow-ups, allowing for a deeper exploration of the topic rather than a single search and response
The combination of these improvements enables AI Mode to perform advanced reasoning and provide refined results as users continue to narrow down their queries through follow-up questions.
How ads might work in AI Mode: learnings from AI Overview
Google has already begun discussing the potential for ads within AI Mode. Although not yet confirmed, users speculate that ads would be displayed similarly to those in AI Overview. Currently, in AI Overview, ads have the following characteristics:
- Ads appear at the bottom of the AI responses in a “sponsored” section, following the same format as the rest of the generated response
- Ads appear for queries identified as having a commercial intent
- Ads draw from existing search and shopping ads and link to relevant products or services
AI Overview ads are currently limited to the U.S. and mobile devices. Advertisers can’t opt in or out of AI Overview ads, nor can they track which ads — if any — appear in AI-generated responses, making it tough to compare engagement metrics between ads populating within AI responses versus traditional search results.
What AI Mode means for advertisers
A similar ad rollout is predicted for AI Mode. Since AI Mode is designed to keep users engaged in ongoing conversations, however, advertisers anticipate lower click-through rates as it could be harder to pull users away from the conversation. Additionally, as users refine their searches and intentions through follow-up questions, advertisers anticipate that these users will represent “premium inventory,” leading to higher click costs.
The search landscape is changing, and Google’s AI Mode could offer a more refined, conversational experience that enhances how users interact with results. As AI Mode evolves, it will be essential to monitor the quality of generated responses, and eventually, the challenges and opportunities it presents for publishers and advertisers.
