Google accelerates AI commercialization: Integrating AI shopping features into Search and Gemini

IT House, February 12 — According to Bloomberg, Google is accelerating the commercialization of AI services, allowing consumers to shop within Google Search’s AI mode and Gemini chatbots. This is a key step for Google to directly generate revenue from consumer AI usage behaviors.

In a letter to the advertising industry on Wednesday, Google revealed that it is testing new ad formats within Google Search AI mode, enabling retailers and other advertisers to showcase products in this environment. Meanwhile, users can now directly purchase items from Etsy and Wayfair platforms within Gemini. Additionally, a new feature called “Direct Offers” will support brands in pushing exclusive discounts to potential consumers within AI mode.

“We’re not simply embedding ads into the AI search experience; we’re redefining advertising itself,” said Vidhya Srinivasan, Vice President of Ads and Commerce at Google.

As users gradually develop habits of using AI, tech giants are actively exploring monetization paths beyond subscriptions. Advertising and e-commerce will become major revenue sources supporting the massive investments in AI infrastructure. It is forecasted that by 2026, the combined capital expenditure of Google, Amazon, Meta, and Microsoft will reach a record high of $650 billion (IT House note: approximately 4.5 trillion RMB at current exchange rates).

Industry competition is intensifying. Recently, OpenAI launched ad testing for ChatGPT in the U.S. market, believing that for users who do not subscribe to premium plans, ads are the fastest way to monetize their usage.

Earlier this year, Google began integrating AI assistants into the shopping process and introduced standardized payment and digital identity verification solutions. The company has partnered with Shopify, Target, and Walmart to help users complete checkout directly within Google AI products through these agreements.

Srinivasan stated that this “lays the foundation for future commercial experiences, where all transactions will be seamless and intelligent,” implying a future where AI assistants can complete shopping on behalf of users.

However, Google’s aggressive expansion into AI shopping has raised concerns in Washington. Senator Elizabeth Warren expressed worries in a letter about consumer privacy and the risks of high-pressure sales tactics. In response, Google has previously clarified that merchants are strictly prohibited from listing prices higher than those on their official websites.