Recent developments indicate that Google is indeed embedding shopping capabilities directly into its AI-driven products — both within Search’s AI Mode and the Gemini chatbot — in a bid to monetise AI usage more directly. Reports confirm that users can now see product offers, engage with “direct offers” from brands and make purchases (for example from merchants such as Etsy and Wayfair) without leaving the AI experience. The company is also experimenting with new ad formats linked to these shopping features. 

Will this strengthen Google’s AI monetisation strategy?

Yes. The strategy represents a logical extension of Google’s broader efforts to monetise its large and growing AI user base. Traditional search monetisation through advertising is a core revenue driver for Alphabet. As users shift toward AI-generated responses and away from clicking links, there is a risk that traditional ad impressions will diminish. By integrating shopping and commerce features into AI interactions, Google is creating new monetisation touchpoints that could capture value earlier in the user’s decision journey, rather than relying solely on traditional search ads or subscription fees. 

This approach aligns with broader industry moves where major technology firms are embedding AI-assisted commerce into conversational interfaces, seeking to replace or augment existing funnels from discovery to purchase. Given the scale of Google’s user base, converting even a small fraction of AI queries into commercial transactions or ad engagements could translate into material revenue streams. 

How meaningful could this be for revenue?

The direct revenue impact will depend on a few factors:

1. User adoption and behaviour

AI-powered search and conversational shopping are still evolving. If users find value in buying directly through AI interfaces, this could dramatically increase transaction volume and associated advertising revenue. Research suggests AI-assisted platforms are becoming an increasingly important part of purchase decision journeys, implying long-term monetisation opportunities. 

2. Advertising evolution

Google’s ad business remains robust, and incorporating shopping showcases or sponsored offers within AI interactions could create premium advertising real estate. Even if Google initially does not take a cut of transaction revenue, enhanced ad formats and targeted commerce placements would drive spend from brands keen to reach purchase-ready customers. 

3. Competitive position

By owning the interface between consumer queries and purchases, Google can capture value that might otherwise accrue to other marketplaces or AI services. In theory, this could mitigate traffic loss to other AI chatbots and maintain advertiser demand. The precise revenue uplift is difficult to quantify at this stage, but the strategic positioning suggests a meaningful diversification of revenue beyond legacy search ads.

In summary, embedding shopping into AI interactions strengthens Google’s ability to monetise its AI ecosystem and could become a significant contributor to revenue over time, particularly as AI adoption grows and users increasingly rely on AI for discovery and decision-making. The longer-term financial impact will depend on how effectively Google balances user experience with commercialisation.