Business & Finance
Google says ads will persist as AI agents automate shopping
Chief Business Officer Philipp Schindler says sponsored offers remain as Google scales ads in AI Mode and AI Overviews.
The short version
- Google's chief business officer said on Alphabet's earnings call that AI shopping agents still leave room for brand comparison and sponsored offers.[Business Insider]
- Google acknowledged AI Mode has lower monetization than traditional search and is now scaling ads there in ten named countries.[9to5Google]
- Alphabet's third-quarter revenue of $127.58 billion narrowly missed expectations, and shares fell about 10% after hours.[Business Insider]
- Google plans to bring AI Mode ads to Brazil, Mexico and the United Kingdom in Q4 2026.[9to5Google]
Key facts
- Alphabet reported third-quarter revenue of $127.58 billion, below the $127.97 billion analysts expected.[Business Insider]
- Alphabet shares fell about 10% after hours following the revenue shortfall.[Business Insider]
- Philipp Schindler said AI agents can automate shopping, but users still want to compare brands, prices, perks, and sponsored offers.[Business Insider]
- Google said its ad experiments showed promising results and that it is scaling ads within AI Overviews and AI Mode.[9to5Google]
- Google said it is scaling ads in AI Mode in Australia, Canada, India, Kenya, Malaysia, New Zealand, Nigeria, Pakistan, the Philippines, and Singapore.[9to5Google]
- Google plans to expand ads in AI Mode to Brazil, Mexico, and the United Kingdom in Q4 2026.[9to5Google]
What remains uncertain
- Google's claim that its ad experiments showed promising results is the company's own assessment and is not independently verified.[9to5Google]
- Ads in Brazil, Mexico, and the United Kingdom are planned for Q4 2026 and are not yet in effect.[9to5Google]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.