Google (GOOGL) is injecting ads directly into AI chatbots—its latest move to defend the core business that made it a $2 trillion giant. The experiment shows just how far the company’s willing to go to protect its $240 billion ad machine as user habits shift toward AI-driven answers.
Google Test Ads Surface Inside Chat Conversations
Google is now placing ads within chatbot responses, working with startups like iAsk and Liner to test what it calls “conversational AdSense.” Instead of traditional sponsored search links, users chatting with an AI assistant might suddenly see a promo for, say, surfing lessons in Maui after asking about vacation ideas.
These aren’t sidebar banners—they’re part of the dialogue. And that’s the point. Millions are skipping the search bar and going straight to chatbots—so Google’s now forcing its ad engine back into the flow of conversation.
Google Fights Back as AI Search Disrupts Its Core Business
The push comes as Google’s long-standing search dominance faces its biggest challenge in decades. ChatGPT, Claude, and other AI platforms are slowly eating into what used to be Google’s exclusive turf: fast, informative, ad-supported answers. If users don’t “Google it” anymore, Google doesn’t get paid.
That risk is real. Search and YouTube ads made up over 75% of Alphabet’s $86 billion in Q1 revenue. So even the smallest erosion in search behavior could put pressure on growth—and by extension, on Alphabet’s stock (GOOG), which is already priced for sustained dominance in digital ads and AI.
Is Google a Good Buy Right Now?
Wall Street seems to think so. Alphabet’s stock holds a Strong Buy rating on TipRanks, backed by 31 Buys, 10 Holds, and zero Sells from 41 analysts over the past three months. The average 12-month GOOGL price target sits at $200.21, representing a 24.12% upside from its current price of $161.30. The most bullish analysts see it hitting $240, while even the lowest forecast calls for just a minimal drop to $160.
In short, analysts are standing firmly behind Google—even as it rewires the way it monetizes search.
