Second is advertiser tools. If you’re a small business, you’re not thinking about all the queries people are going to type in. AI is great at figuring out which keywords to use, what’s the optimal creative, and generating all of that.

The third piece is the most nascent: ads in new experiences. The general philosophy we have is to build a great consumer product, then figure out monetization. Because the business is so strong and healthy, that’s a luxury we have.

What have you learned from experiments around ads in AI Mode?

Ads are always separate from organic results and clearly labeled. If we don’t think any ad is relevant, we don’t show any ads. Probably the biggest principle of all is that ads should be useful.

What [ads in AI Mode] have shown is mostly intuitive things. If it’s relevant, a user will click on it. If not, they won’t.

At Davos, Demis Hassabis said that Google has no plans to bring ads to Gemini. How are you thinking about it now?

The reason we focused on ads in AI Mode and AI Overviews is because we see them as extensions of the Search experience. It’s the most natural place for us to do initial experiments.

I would expect that the learnings that we get from ads in AI Mode would likely carry over to what we might want to do in the Gemini app down the road. We’re able to get all those learnings within a context and a construct that users are already aware of ads. It’s an odd thing to say, but our research shows that users actually like ads within the context of Search. Over time, we’ll figure out what makes sense in the Gemini app.

So you guys aren’t ruling out ads in Gemini completely?

No, we’re not ruling them out. It’s just not where we’ve been focusing.

Gemini is a massive product now—it’s grown quite fast. OpenAI is already trying out ads in ChatGPT. What makes you think Gemini isn’t ready for ads?

We’re super happy with how well it’s growing. I would say it’s more of a prioritization question—what’s the right area to focus right now?

Do you think OpenAI introduced ads too early?

It’s hard for me to say. I think it will really depend on how they do it. What we’ve seen is when we do ads right, it’s accretive to the product experience. But the really critical thing is to do it right, and that means relevance, quality, and not putting ads where users don’t want to see ads.

That’s hard to do. We have over 20 years of experience learning how to do that. It’s less a question of timing and more a question of doing it right, and in a way that’s respectful of users.

Google recently launched Personal Intelligence in Gemini and AI Mode. I imagine advertisers would love to get their hands on that data. How are you thinking about that?

Personal Intelligence is incredibly useful. For example, I was skiing and couldn’t see well through my goggles—it was cloudy out. I asked AI Mode a fairly vague question about what lens I needed for the conditions. From my email, it was able to say which resort I was staying at, which mountain I’d be skiing, and what the weather would be. It also pulled in a receipt my wife had forwarded me for my goggles—turns out she’d bought me an extra lens. It’s like subtle magic.