AI Mode Where Conversation Meets Commerce
Piloted on 11 January 2026, AI Mode Shopping Ads represent a fundamental shift in e-commerce advertising. These ads appear within Google's AI-powered search experiences, using advanced language models to match products with complex, conversational queries that traditional keyword matching can't handle.
Consider a shopper searching: "I need a modern rug for a high-traffic dining room where I host parties, something easy to clean." AI Mode understands these nuanced requirements and surfaces relevant products from advertisers who meet the specific criteria. This isn't keyword matching but genuine comprehension of user intent.
The experience also includes Direct Offers, allowing retailers to present exclusive discounts directly within AI Mode at the perfect moment. When shoppers are ready to buy, they can see special promotions like "20% off" without leaving the search experience.
Behind this innovation is the Universal Commerce Protocol (UCP), a new open standard co-developed with industry leaders including Shopify, Etsy, Wayfair, Target, and Walmart. UCP enables seamless checkout experiences where shoppers can complete purchases from eligible retailers directly within AI Mode using Google Pay or PayPal, with saved payment methods and shipping information. Retailers maintain control whilst reducing cart abandonment and capturing high-intent sales.