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Google Rolls Out Ads in AI Search Results

Posted on Tuesday, August 5th, 2025 at 2:48 pm    

Ads Are Live Inside Google’s AI Search

Google has begun placing ads directly inside its AI-powered search experience, known as AI Mode, with plans to expand ahead of the end-of-year buying season. While most users still expect a list of links, those using AI Mode are starting to see sponsored placements show up inside full-sentence answers.

According to internal materials shared with agency partners, this is the beginning of a new model for how ads will be delivered across Google Search.

More than 100 million users are already engaging with AI Mode. Advertisers who move quickly can use this time to collect performance data, refine messaging, and secure a stronger position before competition increases during the high-volume holiday window.

In one of Google’s examples below, the websites listed as citations to AI Mode’s answer now have a “Sponsored” marker on them to show users which citations are paid ads, much like traditional search PPC ads.

From Keywords to Conversations

Google is moving away from matching ads to short, specific search terms. In AI Mode, ads are targeted based on the full exchange between the user and the AI, not just an isolated query. This change means ad relevance is now tied to the context of a longer conversation.

That creates both opportunity and pressure for legal marketing experts. Campaigns must account for intent that unfolds over several messages. A user may begin with a broad question and narrow in over time, and Google’s AI evaluates the entire dialogue to determine which ads appear and when.

The company has published internal guidance explaining that AI Mode is designed for more exploratory and complex queries. As a result, traditional keyword strategies may not be enough. Brands will need to rethink how they craft content, structure offers, and build relevance within ongoing interactions, not just search terms.

How Law Firms Should Prepare

Google is already briefing its partners on how ad placements inside AI Mode will expand in the coming months. While the formats are familiar, the way those ads are selected and displayed is different. Context now matters more than the keyword itself.

For law firms running campaigns through Performance Max or AI Max for Search, ads are already eligible to appear in AI Mode. That means your firm could be showing up in AI-generated responses without you realizing it. But visibility in this setting depends heavily on how well your data is structured. If your location, services, or practice areas are unclear or outdated in your campaign feed, the AI may pass you over for more complete profiles.

Google has emphasized the importance of reviewing and maintaining accurate campaign inputs ahead of the Q4 ramp-up. This is especially important in legal, where high-intent searches can lead to significant case opportunities. The sooner firms begin adapting to the context-first model, the more prepared they will be when competition increases during peak ad season.

Uncertainty Around How Users Will Respond to AI Ads

As Google expands ads inside AI-powered search, one of the biggest unknowns is how users will interact with them. Unlike traditional search results, which present a list of clearly labeled links, AI Mode blends ads into full-sentence responses. That could change user behavior in ways advertisers, including law firms, aren’t used to tracking.

Will someone researching a personal injury claim click on a sponsored answer embedded in a paragraph? Will they scroll past it to keep reading the conversation? These questions matter because most digital campaigns are built around click-based pricing and performance metrics.

If interaction rates change, pricing models may follow. Some in the industry are already discussing whether impressions, not clicks, could play a larger role in how these placements are valued. Until more data becomes available, firms should monitor their campaigns closely and stay ready to adjust.

An AI Mode conversation like this one discussing law firms in any given market will always show a collection of websites used to compile the answer. But now, this list can show “Sponsored” citations, allowing law firms to appear in AI Mode more frequently than just their organic inclusion in these kinds of AI searches.

Why This Matters for Law Firms Right Now

Google is already placing ads inside AI-generated responses, and more placements are coming before the end of the year. These results are based on entire conversations, not short search terms. That changes how people find legal services online.

Outdated or unclear campaign content will limit visibility for your law firm. If your messaging, location, or services are not accurate in your ad feed, your firm may not appear in relevant searches. Firms that review their campaigns and update their data will be better positioned to reach people who are actively looking for legal help.

TSEG works with law firms to adjust to changes in search and stay visible as Google updates how results are delivered. We make sure your campaigns are ready for what is happening now, not just what used to work. Contact us today.