The news: Google AdSense is broadening its reach to include ads in chatbot conversations for AI startups, following successful tests with iAsk and Liner earlier this year, per Bloomberg.

A Google spokesperson told Bloomberg that “AdSense for Search is available for websites that want to show relevant ads in their conversational AI experiences,” while iAsk and Liner did not comment.

Despite testing with startups, there don’t seem to be plans yet to incorporate advertising in Google’s Gemini chatbot, though Adweek previously reported that the company was exploring bringing ads to AI Mode.

The race for ads in AI: The test is part of Google’s effort to rule the AI landscape. While Google dominates in AI search, its Gemini chatbot doesn’t match the reach of OpenAI’s ChatGPT.

• OpenAI has already hinted at advertisements. CFO Sarah Friar claimed that the company was exploring advertising as a potential revenue stream. While she later stated that there were no immediate plans to implement advertising, the company is continuing its hiring spree of advertising professionals, indicating that advertising is in its future.
• Google is trying to get ahead of the pack by testing ads to understand the best method of monetizing genAI. The startup test will offer “feedback loops” that provide “greater visibility into what’s working,” per Tomasz Tunguz, a general partner for venture capital firm Theory Ventures, which focuses heavily on early-stage AI companies.

Our take: Google’s test is part of its strategy to extend advertising dominance to emerging platforms, and shows that advertising is likely to become a massive part of how AI companies generate future revenues.

• For AI startups, Google’s ad infrastructure provides a revenue stream that can help offset the massive computing costs associated with running sophisticated AI models, and early adopters stand to benefit before the market becomes saturated with ads.
• The integration of ads into AI conversations represents a natural evolution of Google’s advertising business beyond traditional search and website placements—and signals Google’s strategy to maintain dominance as user attention shifts from conventional web browsing to AI-powered conversations.