Google launches AI Max, expanding ad‑search inventory and ending Dynamic Search Ads

Google announced that its AI Max system is now out of beta and has been adopted by more than 500,000 advertisers. The technology aims to turn billions of previously unmonetized, longer and conversational search queries into ad opportunities, with advertisers reporting an average 15% lift in conversions or conversion value at a comparable return on ad spend. Gemini, the underlying model, improves shopping‑ad relevance for complex queries by about 20% and better interprets commercial intent.

The company also previewed new AI‑Mode ad formats, including Highlighted Answers that embed clearly labeled sponsored links within AI‑generated list responses, and Direct Offers that surface promotions during planning journeys, with IHG Hotels & Resorts named as an early partner. Concurrently, Google confirmed the phase‑out of Dynamic Search Ads (DSA). While DSA campaigns can still be created until January 2027, automatic migration to AI Max will begin in February 2027. AI Max differs from DSA by using multiple targeting signals beyond the website, integrating into existing Search campaign structures, generating custom headlines and descriptions, and offering advanced guardrails such as brand inclusion/exclusion lists and geographic intent targeting.