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AI & the future · also called LLM ads, Conversational ads, AI answer ads

Ads in AI assistants

Ads in AI assistants are sponsored placements shown inside or beside AI-generated answers, in chat assistants and in AI features of search engines.

The short answer, from the The Arbitrage Desk glossary

If people ask an AI for answers instead of scanning a results page, the advertising has to move too. The large platforms are now placing sponsored content next to, or within, AI responses.

Google announced at Google Marketing Live in May 2025 that it was expanding ads in AI Overviews to desktop and bringing ads to AI Mode, its conversational search experience. Trade and news reports say OpenAI began testing ads in ChatGPT for free-tier users in the United States in early 2026, and Microsoft has shown ads in Copilot through its existing ad platform. Formats and rules are still changing quickly.

What this means for search arbitrage is an open question, and it is better to say so than to guess. Today there is no established equivalent of a search feed for AI answers: no programme through which a third-party publisher can syndicate assistant ads on its own pages the way AdSense for Search syndicates search ads. If advertiser budgets move from classic sponsored listings to AI surfaces that are not syndicated, the pool of money behind feeds shrinks. If syndication products appear, a new version of the business may follow.

Either way it belongs on the list of platform risks to monitor.

Think of it like this

It is the difference between a billboard beside the road and a taxi driver who recommends a restaurant during the ride. The second is more persuasive, and far harder for an outsider to rent.

Related terms

Sources: Google: Google Marketing Live 2025 announcements