Google is reshaping its search and advertising ecosystem in response to the rapid rise of generative AI, which is transforming how users interact with information and make purchasing decisions. As AI-powered search evolves, traditional keyword-driven queries are giving way to longer, more conversational, and highly specific searches—such as “burgundy shirt in size 12 with a single front pocket that costs less than $50.” This shift is accelerating the journey from search to purchase, reducing the number of clicks and interactions within Google’s platform—a potential threat to its core advertising business, which relies heavily on user engagement. To adapt, Google is introducing major changes to how shopping works in AI Mode, its generative AI-enhanced search experience. The new system allows users to make nuanced, natural-language queries and receive AI-curated product lists. They can then ask the AI to compare options side by side, streamlining the decision-making process. Google’s vice president of ads and commerce, Vidhya Srinivasan, described this as “vibe shopping”—a fluid, intuitive way of searching that mirrors how people naturally speak and think, rather than relying on rigid keywords. This shift has significant implications for Google’s ad revenue. With users finding answers and products faster, the traditional search funnel is shrinking, making it harder for advertisers to predict when and how users will engage. In response, Google is rolling out new tools for marketers to better navigate this “agentic” era. These include AI-powered agent tools that help brands automate campaign management, analyze user behavior, and gain deeper insights into what’s working in real time. Another key innovation is the “agentic checkout” feature, which allows users to set a target price for a product and let Google’s AI bots continuously scan the web for deals. When the price drops to the desired level, the system can automatically purchase the item on the user’s behalf. This not only enhances convenience but also keeps users within Google’s ecosystem, preserving ad visibility and transaction data. Despite these advancements, the changing landscape presents challenges for advertisers. Dan Taylor, Google’s vice president of global ads, acknowledged that marketers now face greater uncertainty. Users are arriving at Google earlier in their discovery journey, often with vague or evolving needs, making it harder to target them with traditional keyword strategies. “They’re coming to Google earlier in their discovery and purchase journey,” Taylor said, “and that creates new opportunities for brands—but also makes it harder to anticipate what kind of keyword list you can come up with.” Google’s strategy hinges on turning these challenges into opportunities by leveraging AI to deepen engagement, personalize experiences, and maintain control over the user journey. By integrating AI into shopping and advertising workflows, Google aims to preserve its dominance in digital advertising while adapting to a future where users expect faster, smarter, and more intuitive search experiences. Ultimately, Google’s ability to monetize AI Mode hinges on its capacity to balance innovation with user retention and advertiser satisfaction. As conversational shopping and autonomous agents become mainstream, Google’s success will depend on how effectively it can evolve its tools, insights, and business model to thrive in an AI-driven world.