What’s New with Google AI and Marketing? A Quick Roundup for Search Marketers

If you manage paid search or digital strategy, Google made some important changes this week. With updates to terms of service, new revenue reports, and fresh ad tools coming soon, here’s what’s changing and how it could affect your campaigns.

1. Google Ads Updated Its Terms (And AI is taking on more control)

Google updated its Google Ads Terms of Service this week. The main change is that Google now has clear permission to automatically write, format, and choose ad creative, targeting, and landing page URLs.

This fits with Google’s move toward more automated campaigns. AI Max for Search is leaving beta, and older setups like Dynamic Search Ads will start switching to AI Max in September 2026.

What you need to do:

Even though the system now handles keyword matching and ad copy, it’s still important to review everything yourself. Make sure to set brand rules, manage negative keywords, and check that the automated ad copy matches your real offers.

2. Google’s Q2 Results Show Search Ads are Still Growing

Google shared its Q2 earnings this week, showing how search revenue is doing as new AI features are introduced.

Search ad revenue rose 17% from last year to $63.27 billion, bringing total ad revenue to over $81 billion. Executives said that Gemini’s updates improved search query matching during big events like the 2026 FIFA World Cup, instead of taking traffic from regular search ads.

3. New AI Ad Formats Are Arriving in Campaigns

Some ad features that were only in testing before are now becoming widely available:

• Conversational Search Ads: Ads can now appear in Gemini-powered conversational search threads. Instead of just matching exact keywords, the algorithm looks at the whole conversation to match ads.
• Interactive Business Agents: You can now add interactive AI assistants to lead generation ads. Rather than having users fill out a form, the ad opens a chat to answer questions and qualify leads right away.
• Ask Advisor Expansion: Google’s co-pilot tool, built on Gemini, is now available to more users in beta. Campaign managers can ask questions in plain English to plan budgets, check Google Analytics 4 data, or get draft creative ideas.

4. Infrastructure Upgrades: Gemini 3.5 Pro

On the technical side, Google launched its updated Gemini 3.5 Pro model. It has a 2-million-token context window and better multi-step reasoning. For marketers, this model helps with tasks like creating multi-format assets in Asset Studio and running automated scripts in Google Ads.

A few FAQs we see

Do I lose control over my landing pages with the new Terms of Service?

Not completely. Google’s Final URL Expansion lets AI send search traffic to the most relevant page on your site, but you can set URL exclusion lists for each campaign. This way, users won’t end up on sensitive pages like terms and conditions, blog posts, or out-of-stock items.

What happens to my existing Dynamic Search Ads (DSA)?

From September 2026, Google will start upgrading old DSA campaigns to AI Max for Search. Your original targeting settings will carry over, but it’s a good idea to review your campaign controls early to set brand rules and text exclusions.

Does AI-generated ad copy present brand compliance risks?

It can if you don’t monitor it. Under Google’s new Advertising Terms, advertisers are still legally responsible for the final copy, destinations, and claims in their ads, even if AI creates them. Setting clear brand guidelines and doing regular compliance checks is still necessary for account managers.

Reference Points & Official Documentation

For those who want to read the source materials directly, here are the official Google document references:

• Policy Updates: Google Ads Terms & Conditions — Details on platform rules, advertiser responsibility, and automated formatting.
• Campaign Upgrades: About AI Max for Search Campaigns — Official guide covering search term matching, text customization, and Final URL expansion.
• Technical Integration: Google Ads API: AI Max Getting Started Guide — Technical overview of parameters, asset automation controls, and reporting views.

Key takeaway for campaigns

Google’s direction is clear: automation is taking over more daily tasks, so marketing teams can focus more on positioning, testing offers, and checking data.