Ads in generative AI search results will be tested by Google.

23 May (Reuters) In an effort to compete with competitor Microsoft (MSFT.O) in the lucrative search advertisements market, Alphabet Inc.’s (GOOGL.O) Google will start testing advertising within search results powered by generative artificial intelligence, the tech titan announced on Tuesday.

Google and Microsoft have intensified their competition to transform how people search for information during the past several months by incorporating generative AI into their search engines. This AI may generate textual conversational responses to user queries, synthesise content online, and surface relevant websites.

The AI skills will also change how advertisers interact with customers through search engines, a sector that research group MAGNA predicts will reach $286 billion this year.

For instance, if a user searches for “hiking backpacks for kids” on the new Google, the AI may answer with an advertisement for a specific backpack and advice on how to pick the right backpack for a child, according to Google.