Google is testing a new shopping ad format in AI Mode

Commerce. The company predicts that as early as 2026, commercial experiences will become more flexible, personalized, and assistive, while artificial intelligence will make it possible to combine fast decision-making with a high level of confidence in product selection. Traditionally, consumers have had to choose between making a quick purchase with the risk of making a mistake and spending significant time researching before buying. Thanks to AI, this trade-off is gradually disappearing. This means businesses need to rethink how they build consumer trust from the very first stages of interaction. The role of YouTube in product discovery and demand formation YouTube remains a key discovery channel. For nearly three years, the platform has been the most-watched streaming service in the United States. Creators play an important role in shaping consumer demand, as users trust them when choosing products and brands. In 2026, Google plans to strengthen the interaction between brands and creators using AI. Algorithms will be able to analyze content and audiences more deeply, automatically matching brands with relevant creator communities. This will help convert organic influence into measurable business results and accelerate the user journey from product discovery to purchase. Transforming search advertising with AI Search is gradually moving beyond traditional keywords. New interaction scenarios include conversational queries, image-based search, and brainstorming-style requests. AI Mode demonstrates this approach by integrating advertising directly into user conversations. New ad formats allow retailers to appear with sponsored labels directly below organic results. This functionality extends beyond e-commerce into other categories, including travel. A separate element will be the Direct Offers format. It will allow brands to present personalized offers to users with a high purchase intent. These may include individual discounts, loyalty rewards, or product bundles. The development of agentic commerce In 2026, the concept of agentic commerce is actively developing — a model in which AI agents assist users at every stage of the shopping journey. The main goal is to minimize routine tasks for consumers and provide a seamless user experience. To achieve this, Google is collaborating with industry partners and implementing standardized protocols. In 2025, the Agent Payments Protocol (AP2) was launched, followed by the Universal Commerce Protocol (UCP). These technologies standardize how AI agents interact with commerce platforms, enabling secure digital identity and protected payments. Currently, UCP-based checkout is available for U.S. users on platforms such as Etsy and Wayfair within AI Mode and the Gemini app. More retailers are expected to join the ecosystem. At the same time, UCP’s potential goes beyond retail, creating the foundation for a fully agent-based economy. Accelerating advertising growth with Gemini 3 The Gemini 3 model has become the foundation of Google’s new advertising tools. It enables improvements in advertising products without requiring changes from advertisers. In 2026, Gemini-powered tools will help improve creative quality and advertising performance. For example, solutions such as Nano Banana and Veo 3 allow advertisers to quickly create studio-quality advertising assets. According to Google, in 2025 the number of creatives generated using Gemini tripled. In the fourth quarter alone, around 70 million advertising assets were created. AI Max campaigns further expand advertiser reach by unlocking access to billions of new search queries. At the same time, Google is modernizing its measurement systems by unifying data to generate more accurate insights. Focus on trust and privacy The development of AI-driven commerce is based on Google’s long-standing principles of data security and privacy. As AI agents begin acting on behalf of users and businesses, the company is strengthening standards for data protection and trust. The primary goal is to create an environment where the speed of digital commerce is combined with a high level of security. Impact on the advertising market and business strategies The development of AI-integrated advertising is changing traditional approaches to digital marketing. Businesses will need to adapt to an environment where advertising messages no longer exist separately from the user experience but become part of it. This means a shift from the model of “ad impression → click → website → purchase” to a model where purchases can happen directly within AI interfaces. As a result, the importance of data quality, personalization, and brand trust is increasing significantly. New requirements for data quality and personalization AI-driven commerce increases the requirements for data structure and quality. Companies need to: ensure product feed accuracy and freshness; work with first-party data; integrate CRM systems with advertising platforms; invest in data governance and data security. Companies that fail to build high-quality data infrastructure may lose competitiveness in the new commerce ecosystem. What this means for marketers today Companies should begin preparing for AI-first commerce now. Key focus areas include: investing in owned data and CRM ecosystems; developing personalized communications; optimizing content for conversational search; working with the creator economy; testing AI tools in advertising and creative production. Long-Term outlook for AI commerce It is expected that in the coming years commerce will become more autonomous. Some decisions related to product selection and transaction execution will be handled by AI agents acting on behalf of users. In this model, businesses will compete not only for human attention but also for the trust of algorithms that recommend products. Conclusions Together, these technologies form a new model of digital commerce. In 2026, shopping is becoming more personalized, faster, and more predictable. For businesses, this means the need to adapt to an AI-oriented approach, where trust, personalization, and AI integration across all customer touchpoints become critical success factors. In the long term, these innovations are changing the very logic of commerce, making it more convenient, intuitive, and efficient for both consumers and businesses. This article is available in Ukrainian.