Google intends to retain advertising in AI-driven shopping
Google's business division head Philipp Schindler believes users will still choose brands, prices, and terms even when delegating purchases to bots.
Google believes the proliferation of AI agents will not deprive it of its advertising business. Even if assistants take over product searches and comparing terms, the company intends to preserve space for advertising offers during the selection phase.
Google’s Chief Business Officer Philipp Schindler discussed this during Alphabet’s quarterly results discussion. According to him, artificial intelligence is well-suited for the routine aspects of shopping, but users do not always want to fully delegate decision-making to it.
Buyers may consider not only price but also trust in a brand, service quality, and additional benefits. Google plans to integrate advertising into the process of comparing such options.
As an example, Schindler described selecting insurance: AI finds a suitable product, then offers an alternative with a different cost, coverage terms, or a special discount. The company believes the absence of a single ideal solution leaves room for the advertising model.
This task becomes more important as AI-powered search evolves. Google’s leadership acknowledges that AI Mode currently generates less revenue per query, though the company is already expanding advertising experiments.
Thus, Google envisions the future of online shopping as a combination of automation and human involvement: the agent handles preparatory work, while the user continues to choose between offers.
