Google to test ads in generative AI search results

Alphabet Inc’s Google will begin experimenting with advertising within search results powered by generative artificial intelligence, the tech giant announced on Tuesday, as it seeks to fend off rival Microsoft in the lucrative search ads market.

Over the past few months, Google and Microsoft have supercharged a race to change how people search for information by infusing their search engines with generative AI, which can provide conversational written responses to queries, synthesize information online and surface relevant websites.

The AI capabilities will also alter how advertisers reach consumers through search engines, a market that is estimated to grow to $286 billion this year, according to research firm MAGNA.