Google reshapes advertising and shopping tools around AI for 2026
The tech giant says it is testing sponsored ad formats in AI Mode and rolling out agent-powered checkout with major retailers.
Google has said it is refocusing its advertising and commerce products for 2026 around artificial intelligence, aiming to make online shopping faster and more seamless.
The company said it wants to use AI to make commercial experiences "fluid, assistive and personal" and to deepen connections between brands, creators and consumers.
Google highlighted YouTube's role in product discovery, noting the platform has been the most-watched streaming service in the United States for nearly three years.
The company said it is testing a new ad format within AI Mode, its AI-powered search experience, that showcases retailers marked as sponsored, and is exploring similar formats for travel.
Google said its Gemini 3 model now underpins its advertising tools, reporting a threefold increase in AI-generated creative assets by advertisers in 2025, with nearly 70 million produced in the fourth quarter alone through its AI Max and Performance Max campaign products.
The company said AI Max is unlocking billions of previously untapped search queries and that it is overhauling its measurement systems to give advertisers consolidated data.
Google also outlined its ambitions in what it calls agentic commerce, where AI agents act on behalf of consumers to complete transactions.
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The company said its Universal Commerce Protocol (UCP), introduced last month, standardises connections between businesses and AI agents, including secure identity verification and payments.
UCP-powered checkout is now rolling out to allow US shoppers to buy from Etsy, the online crafts marketplace, and Wayfair, the furniture retailer, through AI Mode and the Gemini app, with Shopify, Target and Walmart to follow.
The Recap
- Google expanding AI ads, commerce and Gemini tools in 2026.
- UCP-powered checkout rolling out for Etsy and Wayfair purchases.
- Gemini generated nearly seventy million creative assets in Q4.
