Google Tests Ads in AI Mode for Personal Intelligence Users

Have you ever felt like you were being watched? Not in a dramatic movie way, but in a subtle way where you don't even realize it. You mention an item to a friend, and a few hours later it appears on your newsfeed. You search for a topic, and suddenly ads for it are everywhere.

Now imagine an even deeper version: Google doesn't just read what you search for, but also reads your Gmail emails, Google Photos images, and soon your Google Calendar schedule — to understand who you are, what you like, and what you are planning. Then, it decides which ads will appear in front of you within the AI answer.

That is no longer a distant future. That is what Google is starting to test right now with ads in AI Mode for users who have enabled Personal Intelligence.

Old Commitments and an Unexpected Change

Let's go back to March 2026. When Google launched Personal Intelligence – a feature that allows AI Mode to access data from Gmail, Google Photos, and Google Calendar to personalize answers – they made a very clear commitment: users who turn on Personal Intelligence will not see ads in AI Mode.

That was a promise filled with goodwill. It was like saying: "Trust us with your personal data. We won't use it to sell ads to you."

But now, Google is starting to test ads in AI Mode for this exact group of users. A Google spokesperson confirmed to the media that there are currently no ads for users connecting apps to AI Mode, but they also admitted: "In the future, we anticipate ads will work similarly for people who choose to connect their apps to AI Mode. Ads will continue to be relevant to your query, the context of the answer, and your preferences."

This is not a minor change. This is a turning point in how Google shapes the future of search advertising.

AI Mode and Personal Intelligence: When Search Becomes a \"Close Friend\"

To understand why this move matters, we need to understand what AI Mode and Personal Intelligence are.

AI Mode is Google's next-generation search interface, where users chat with AI instead of typing keywords. It has surpassed 1 billion monthly active users and is becoming the center of Google's search strategy.

Personal Intelligence is the personalization layer built on top of AI Mode. When you turn on this feature, Gemini can reference data from Gmail, Google Photos, and Google Calendar to deliver answers tailored to your specific situation.

Imagine you ask: "What jacket should I buy for my trip to Paris next week?"

A standard AI Mode would give a generic suggestion. But AI Mode with Personal Intelligence will know that you booked a flight to Paris in an email, that you like minimalist style through the photos you save, and that you have previously bought jackets from a specific brand. It will provide suggestions that are astonishingly personalized.

And now, Google wants to add advertising to that equation.

Two New Ad Formats: Conversational Discovery and Highlighted Answers

Google isn't simply inserting ads into AI Mode. They are developing completely new ad formats designed specifically for the AI conversational environment.

According to information from the Marketing Live event, there are two main formats:

• Conversational Discovery Ads: Ads that provide detailed, relevant information about a product that can meet the user's needs, presented as a natural part of the conversation.
• Highlighted Answers: Ads that display "high-quality, highly relevant ads" within the recommendation list generated by Google's AI Mode.

Both formats feature a clear "Sponsored" label. And crucially, they come with an "independent AI explainer" – an AI-generated explanation that helps users understand why the ad is relevant to their question.

This is a commendable effort to maintain transparency. But it also raises a big question: Will users be able to tell the difference between a helpful answer and an ad disguised under a "helpful" guise?

Nick Fox and the Philosophy of "Useful Ads"

Nick Fox, Google's Senior Vice President of Knowledge and Information, shared notable insights into the philosophy behind this move.

He emphasized that AI Mode is a "low-risk sandbox" to test advertising strategies before applying them to Gemini. He outlined three main principles:

• Relevance matters more than position: Users are willing to see ads if they solve a problem presented within the AI answer.
• Personalization is the "holy grail": The Personal Intelligence feature may enable hyper-targeted ads, but privacy safeguards remain paramount.
• Monetization timing is strategic: With 2025 revenue exceeding $400 billion, Google can afford a measured rollout rather than rushing.

Fox also revealed that ad quality prediction models built for Gemini have outperformed older systems, delivering a 15% increase in conversion probability predictions. And in early tests, when ads matched the AI-generated answers, click-through rates (CTR) increased by about 12% compared to traditional SERP placements.

These numbers clearly show one thing: ads in AI Mode are more effective than traditional search ads. And that is why Google is pushing forward with testing.

The Privacy Issue: When Gmail Becomes an Ad Signal

Yet there is an issue Google seems to be skimming over: privacy.

Since 2017, Google has pledged not to show ads based on the content of users' emails. That commitment remains in place. But with the advent of Personal Intelligence, the boundaries are blurring more than ever.

Google's support documents have acknowledged that they may show ads based on user interactions with AI. And when AI can access data from Gmail, those interactions can include information from your emails.

Imagine this: You are researching a new car model. Personal Intelligence can look at your email to see what car you currently drive, what you usually use it for, and who you usually carry with you. The AI pieces together a clearer picture of who you are. And from there, it can display more relevant ads.

Google asserts that they do not use Gmail data for targeted advertising right now. But neither their statements nor their support documents rule out this possibility in the future. And the fact that they are starting to test ads for Personal Intelligence users shows that the door is slowly opening.

This is a high-stakes gamble between ad value and user trust. Google understands that moving too fast could lose them the trust they have spent over two decades building. But moving too slow could leave them behind in the AI race.

Comparison with OpenAI: Google Is More Cautious, But Is It Enough?

It's worth noting that Google's approach is much more cautious than OpenAI's.

OpenAI launched ads in free ChatGPT for US users starting in January 2026. Ads appear after a certain number of messages, regardless of relevance. That is an aggressive and somewhat heavy-handed approach.

Google is different. They only show ads when the relevance score passes a strict threshold. Users can dismiss ads, and the system records interactions to improve future relevance. That is a more data-driven and user-respecting approach.

But will that be enough? With ads in AI Mode potentially achieving a 12% higher CTR than traditional search ads, pressure for revenue growth will mount. And as that pressure grows, will Google maintain its caution?

Why This Matters for Vietnamese Marketers

You might be thinking: "I'm a marketer in Vietnam, Google testing ads in the US has what to do with me?"

The answer is: a lot.

First, this is the future of search advertising. When AI Mode becomes the default search interface – and Google is heading in that direction – ads in AI Mode will become the most important channel. Marketers who understand how this new ad format works will gain a massive competitive advantage.

Second, data-driven personalization is an irreversible trend. Personal Intelligence is the next step in the personalization journey we have witnessed for years. Vietnamese marketers need to prepare for a world where messages are no longer designed for the masses, but for specific individuals based on deep contextual data.

Third, privacy will be a critical factor. When Google rolls out Personal Intelligence globally, Vietnamese users will also have the option to turn on this feature. Brands will need to be transparent about how they use data, or risk losing customer trust.

Fourth, this is a reminder that SEO and SEM are converging. As ads appear within AI answers, the boundary between organic search results and paid ads is increasingly blurred. Marketers need to understand both to optimize overall performance.

When the Line Between "Useful" and "Advertising" Blurs

I have witnessed the digital advertising industry go through many revolutions over the past two decades. From simple banner ads, to keyword search ads, to behavioral ads, and then programmatic ads. Each step forward has brought new opportunities and new challenges.

Yet this step – ads in AI Mode based on Personal Intelligence – has something different. It doesn't just change how ads are displayed. It changes the nature of advertising.

Previously, advertising was something separate from content. You read an article, and the ad sat next to it. You watched a video, and the ad appeared before or after. But with AI Mode, advertising becomes part of the answer. It is presented as a helpful suggestion, explained by AI, and personalized based on your deepest data.

That is a fundamental shift. And like any fundamental shift, it will create winners and losers.

Brands that understand how to create real value within an AI conversation will be the winners. Brands that only try to stuff ads into every corner will be ignored by users – or worse, boycotted.

Above all, user trust will be the most valuable asset. Google may have data, technology, and algorithms. But if users feel intruded upon, they will leave. And when they leave, everything else becomes meaningless.

How do you feel knowing Google could use data from your Gmail, Photos, and Calendar to show ads in AI answers? Is that a fair trade-off for a more personalized and useful search experience, or is it a red line you do not want crossed? If you are a marketer, how will you leverage AI Mode ad opportunities – and what will you do to ensure your brand is perceived as "useful" rather than "invasive"? Share your perspective below, because in this AI game, those who understand the boundaries win!