Artificial intelligence powered chatbots such as ChatGPT and Google Gemini are beginning to alter the dynamics of search advertising, drawing increasing attention from brands and marketers as user behaviour shifts away from traditional search engines. As conversational AI tools become part of everyday information discovery, advertisers are reassessing where and how digital ad spends are allocated.
AI chatbots are increasingly being used for tasks that were once dominated by search engines, including product research, comparisons, recommendations, and general queries. This behavioural change is prompting advertisers to explore new formats and platforms that align with how users now seek information. While search engines continue to command the largest share of digital advertising budgets, AI-driven interfaces are emerging as a complementary and potentially competitive space.
Chatbots powered by large language models offer direct, conversational responses rather than lists of links. This shift changes the advertising equation by reducing reliance on traditional search result pages where sponsored listings and paid placements have long thrived. As a result, brands are exploring ways to integrate into AI-led experiences without disrupting user trust or the perceived neutrality of responses.
Google has already begun experimenting with AI-powered search features that blend conversational answers with sponsored content. Gemini, integrated across Google products, reflects the company’s attempt to adapt its advertising model to AI-led interactions. The challenge lies in maintaining relevance and transparency while ensuring that advertising does not compromise user experience.
OpenAI’s ChatGPT, while currently operating without conventional advertising, has become an influential platform for information discovery. Its growing user base has caught the attention of marketers who see value in influencing AI-generated responses through content optimisation, partnerships, and data visibility. Rather than buying traditional ads, brands are focusing on ensuring that their products and services are accurately represented in the data ecosystems that inform AI models.
This evolution marks a shift from keyword-based advertising to context-driven visibility. In AI-led environments, relevance is determined by conversational context and intent rather than search queries alone. For marketers, this requires rethinking content strategies to prioritise authority, clarity, and usefulness rather than purely optimising for rankings.
Industry experts note that AI chatbots are unlikely to replace search engines entirely in the near term. However, they are reshaping the upper funnel of consumer journeys. Users increasingly turn to chatbots for initial research and understanding, before moving to transactional platforms. This has implications for how brands measure influence and attribution in a fragmented discovery landscape.
Advertising within AI-driven platforms also raises questions around monetisation models. While search advertising is built on visibility and clicks, conversational AI offers fewer natural insertion points. Platforms will need to balance revenue generation with maintaining trust, particularly as users expect AI responses to be unbiased and informative.
For technology companies, the stakes are high. Search advertising remains one of the most lucrative segments of digital advertising. As AI chatbots divert attention and time spent away from traditional search interfaces, incumbents are under pressure to evolve. Google’s integration of AI into search reflects an effort to defend its core business while adapting to changing user expectations.
Marketers are responding by diversifying strategies across platforms. Instead of relying solely on paid search, brands are investing more in owned content, data partnerships, and AI-friendly formats. The goal is to ensure presence wherever users seek information, whether through search engines, chatbots, or hybrid experiences.
The rise of AI chatbots also introduces new measurement challenges. Traditional metrics such as impressions and click-through rates may not fully capture brand influence in conversational environments. Marketers are exploring alternative indicators such as brand mentions, sentiment, and inclusion in AI-generated recommendations.
Regulatory and ethical considerations further complicate the landscape. As AI systems influence consumer decisions, transparency around sponsored content becomes critical. Regulators may scrutinise how advertising is disclosed within AI-generated responses to prevent misleading practices.
Despite these challenges, advertisers see opportunity in AI-driven discovery. Chatbots can offer highly personalised interactions at scale, potentially increasing relevance and reducing wasted spend. For brands that adapt early, conversational AI could become a powerful channel for engagement and trust-building.
The competition between search engines and AI chatbots is also driving innovation. Search platforms are accelerating AI integration, while chatbot developers explore sustainable monetisation pathways. This convergence suggests that the future of search and advertising may involve hybrid models rather than clear winners and losers.
As AI chatbots continue to gain traction, the advertising ecosystem is entering a period of recalibration. Marketers, platforms, and technology providers are testing new approaches to visibility, relevance, and monetisation. The outcome will shape how brands connect with consumers in an AI-first digital environment.
While traditional search engines are unlikely to lose dominance overnight, the growing influence of AI chatbots signals a shift in how information is accessed and valued. For advertisers, staying relevant will require understanding not just where users are searching, but how they are conversing with technology to make decisions.