Google admits decline in AI search revenue and is preparing new ad formats

Google has officially acknowledged that integrating generative artificial intelligence into search results generates less revenue compared to traditional advertising. This statement was made following the release of its third-quarter financial results.

According to the report, the company's negative cash flow increased to -$9.06 billion, and stock prices dropped noticeably after the market closed. The primary reason for the financial pressure was the increased infrastructure costs for AI operations and the challenges of monetizing neural network responses.

To address the situation, Google intends to implement more ad integrations directly into the AI response interface. New ad units will begin appearing in AI-generated search results in upcoming service updates.

These changes will affect both advertisers and users as the search giant restructures the economics of its core products to meet the demands of the artificial intelligence era.