Investing.com -- Google announced on Wednesday that it is testing new advertising formats powered by its Gemini artificial intelligence model, designed to provide more relevant product information during consumer searches.

The company said 75% of users make faster and more confident decisions using AI Mode in Search. The new ad formats will include independent AI explainers that synthesize product information alongside advertiser content, with all formats clearly labeled as sponsored.

Conversational Discovery ads will answer specific user questions by highlighting relevant product features. For example, a search about making a home smell better could generate an ad tailored to that specific query. Highlighted Answers will display relevant ads within AI Mode's recommendation lists, such as language learning apps for travelers.

Google is also launching AI-powered Shopping ads for product categories like appliances and electronics. The Gemini model will generate custom explanations for why specific products may suit a shopper's needs. Business Agent for Leads will allow potential customers to chat with an AI agent within ads to get answers based on a company's website.

The company is expanding its Direct Offers pilot, which launched in January 2026 with brands including Chewy, Gap and L'Oreal. New features include promotion bundling, where AI constructs deals like product bundles for specific searches, and native checkout integration for Universal Commerce Protocol merchants. Travel partners including Booking and Expedia will be able to surface special offers during AI-assisted trip planning.

Google recommended that advertisers use AI Max for Search, AI Max for Shopping campaigns and Performance Max to take advantage of the new formats.