Google is introducing a new feature that enables consumers to make direct purchases while receiving AI-driven answers through its search engine and Gemini chatbot. This initiative is part of a broader strategy to monetize user interactions with artificial intelligence more effectively.

In a letter to the advertising community on Wednesday, the company announced that its AI-powered search mode is testing new ad formats, allowing retailers and other advertisers to showcase products. Google stated that users can now buy items directly from Etsy and Wayfair within Gemini. Additionally, a new "Direct Offers" feature in the AI mode will enable brands to provide discounts to potential shoppers.

"We are not only incorporating ads into the AI search experience but also redefining the nature of advertising itself," said Vidhya Srinivasan, Vice President of Advertising and Commerce at Google.

As consumers increasingly adopt AI tools, technology firms are focusing on generating revenue through chat-based functionalities beyond subscription sales. Advertising and commercial services are expected to help fund the billions of dollars that AI companies plan to invest in infrastructure. Spending by Google, Amazon, Meta Platforms Inc., and Microsoft is projected to reach a record $650 billion by 2026.