Google Rolls Out AI Marketing Tools in India Following Digital Tax Repeal
Google Rolls Out AI Marketing Tools

Google has officially launched its suite of AI-powered advertising tools for Indian marketers, following the recent rollback of India’s controversial “Google Tax” on digital services. The move signals Google’s intent to expand its footprint in the country’s digital advertising ecosystem, offering advanced marketing technologies at a time when brands are actively adopting AI for greater efficiency and personalization.

The new tools are designed to help advertisers generate more relevant and engaging campaigns using generative AI, and include features such as AI-powered search summaries, auto-generated ad creatives, and predictive performance tools—all now accessible to Indian advertisers for the first time.

Context: Tax Policy Change Paves the Way

The launch follows the Indian government’s recent decision to scrap the 2% equalisation levy, commonly referred to as the “Google Tax,” which had been levied on foreign digital companies operating in India since 2020. Its repeal, effective July 1, removes a significant barrier that had previously slowed the rollout of Google’s advanced AI marketing offerings in the Indian market.

With the tax hurdle cleared, Google has wasted no time bringing its latest AI-based ad tools to the country, starting with tools for small and mid-sized businesses (SMBs), e-commerce companies, and enterprise marketers looking to scale campaigns with minimal manual effort.

New AI Features for Indian Advertisers

Among the key features now available:

  • AI Overviews in Search Ads: Advertisers can now integrate generative AI-powered overviews directly into search ads. These summaries pull context from webpages and user queries to serve more intelligent and personalized ad content.
  • Automatically Generated Assets (AGA): This feature uses generative AI to create headlines, descriptions, and image suggestions for campaigns, reducing the time and effort required for ad creation while maintaining brand relevance.
  • Performance Max Enhancements: Google has upgraded its Performance Max campaigns to include AI-driven optimizations that adjust bidding, targeting, and creatives in real-time based on campaign objectives and audience behavior.
  • Conversational Campaign Builder: A tool that allows marketers to interact with Google Ads through a natural language chat interface. Marketers can ask the AI to generate campaign drafts, find keyword opportunities, and analyze performance, simplifying the ad creation process.

These tools aim to bridge the gap between creative strategy and automation, especially for Indian advertisers seeking speed, scale, and results in a competitive market.

Google’s Focus on the Indian Market

India remains one of Google’s largest and fastest-growing user bases. With over 700 million internet users and a rapidly digitizing economy, the country represents a key opportunity for digital advertising expansion. By making its AI ad tools available, Google is positioning itself as a critical enabler for Indian marketers—particularly in retail, education, finance, and travel sectors.

The tools are currently being rolled out to Google Ads users in phases, with additional support and onboarding provided through Google’s partner network.

Speaking on the development, industry experts believe this move will intensify competition among martech platforms operating in India, especially as Meta, Amazon, and local startups also ramp up their AI capabilities.

Marketers Look Toward AI-First Campaign Models

For Indian marketers, the availability of Google’s AI tools opens up new possibilities for experimentation and optimization. Agencies and in-house teams can now test multiple ad variations, reduce creative production time, and rely on AI to interpret complex performance data—all within the Google Ads environment.

However, experts also caution that increased reliance on AI comes with a need for strong creative supervision and brand safety protocols. While AI can automate tasks, it requires human oversight to ensure messaging, cultural context, and ethics are maintained.

With AI adoption rising across industries, Google’s latest rollout is expected to accelerate the shift toward AI-first marketing models in India. Many industry observers see this as a pivotal moment in the evolution of the country's digital advertising ecosystem—one that could reshape how brands plan, execute, and scale their campaigns in the months to come.