A Google VP explains why ads make sense in AI search but not Gemini — yet (www.businessinsider.com)

Google's VP of global ads, Dan Taylor, announced that the Gemini AI app will not include ads for the foreseeable future, despite rising speculation surrounding its popularity. Instead, the focus will remain on integrating ads into AI Overviews and AI Mode, Google's other AI-driven functionalities. This decision reflects Google's strategy of keeping search and Gemini distinct, with search serving as a path for commercial discovery and Gemini as a personalized AI assistant for deeper engagement. This stance highlights significant implications for the AI/ML community as the monetization of AI assistants presents unique challenges and opportunities. Google's existing expertise in search advertising gives it an advantage, allowing the company to cautiously explore new ad formats without alienating users. By testing new approaches like Direct Offers, which provide tailored discounts within AI Mode, Google aims to navigate the complexities of ad placement in conversational interfaces. As competition heats up between tech giants like OpenAI and Google, this calculated approach may provide a distinct edge, allowing Google to optimize its AI-driven ad strategies without compromising user experience.