Google begins showing ads in AI Mode (AI answers) (www.bleepingcomputer.com)

Google has begun inserting labeled ads into "AI Mode" — its conversational “answer engine” — marking a shift from the ad-free experience it maintained for the past year. AI Mode, available free to all and with model-selection features (including Gemini 3 Pro) for Google One subscribers, historically avoided ads to make the product more compelling. The new ads are shown as “sponsored” items and appear at the bottom of AI-generated answers, whereas citation-style links typically appear in the right sidebar. Google says the labeling complies with legal requirements; the bottom placement suggests ongoing A/B testing or CTR-driven optimization. For the AI/ML community this matters because it signals Google’s move to monetize generative answers and experiment with how ads and model outputs coexist. Technically, the change raises questions about model grounding and transparency: blending sponsored links with model citations could affect user trust, attribution practices, and prompt design (users and developers may need to validate sources more aggressively). It also highlights product trade-offs between engagement and commercial incentives, potential shifts in ranking/citation algorithms, and regulatory scrutiny around disclosure. Expect further experiments on placement, labeling, and personalization as Google balances revenue goals with the integrity of AI-generated responses.