Google launches AI agent in Search ads in India, expands Gemini-powered tools
Google announced on Thursday, July 9, a series of new advertising tools powered by its Gemini AI model, including a feature that embeds an AI agent directly into Search ads. The company aims to automate more aspects of ad creation and campaign management.
The new offering, called 'Business Agent for Leads', is a Search ad format that includes a Gemini-powered AI agent. Users can interact with the agent by asking questions without leaving the search page. The agent is trained on the advertiser's website and is designed to convert interactions into qualified leads. Google stated that the feature is available in beta in India. Indian edtech platform Upgrad was given early access to test the tool with prospective students.
Google also introduced 'Ask Advisor', an AI agent that provides personalised recommendations to marketers. It gathers insights from Google products such as Google Ads, Google Analytics, Google Marketing Platform, and soon Merchant Center to help businesses achieve their goals.
These developments come as AI continues to reshape the digital advertising industry. Google and Meta have long used AI for advertising, and the focus is now shifting from chatbots to autonomous agents.
In April 2026, Google reported an advertising revenue of $77.25 billion for the first quarter of 2026, an increase of 15.5 per cent compared to the same period last year. YouTube contributed $9.88 billion in ad revenue. Advertising accounts for about three-quarters of Google's revenue, enabling the company to invest nearly $200 billion in AI infrastructure.
“Gemini is now the engine accelerating growth for our customers across our ads products as we move beyond marketing automation to marketing intelligence, setting the stage for the agentic era where AI acts as a true strategic growth partner,” said Roma Datta Chobey, Managing Director, Connected Consumer Commerce, Google India.
AI-driven search is also influencing user behaviour. According to Google, queries in AI Mode are three times longer than traditional searches. In India, 84 per cent of users reported faster decision-making and 87 per cent said they made more confident decisions when using AI Mode.
While the digital ad model for these new interfaces is still evolving, Google stated that Gemini reduces irrelevant ads by 40 per cent. “With agents coming, user queries are longer and deeper. Brands have a lot more opportunity to match these queries by leveraging AI,” Chobey said.
Google also announced it is collaborating with Indian e-commerce firms, including Walmart-backed Flipkart, to bring its Universal Commerce Protocol (UCP) to India. UCP, launched in January, is an open standard designed to create a common language for AI agents and online shopping systems.
On the same day, Google upgraded Asset Studio, its platform for creating AI-generated ad assets. Users can now generate brand-accurate ads using natural language descriptions. They can also import marketing briefs, reference images, and brand guidelines to customise AI-generated text, images, or videos.
On YouTube, Google launched a new ad format called YouTube Affiliate Partnerships Boost. This allows brands to incorporate authentic creator content about their products into marketing campaigns more easily.
The rise of AI-generated ad assets has raised concerns about its impact on the creator economy, which relies heavily on brand collaborations. Google's new tools could change the dynamics of how creators and brands work together.
