Google not ruling out ads in Gemini, but 63% of consumers say AI ads destroy trust

Google is officially “not ruling out” placing ads inside its Gemini AI assistant, and the timing could not be worse. A new Ipsos survey reveals that 63% of U.S. adults say ads in AI-generated search results actively erode their trust in those results.

The tension between monetization and user trust is quickly becoming the defining challenge for AI-powered marketing in 2026. For marketers, the stakes are enormous: the platform you advertise on shapes how much consumers trust your brand.

Google SVP confirms Gemini ads are on the table

In a WIRED interview published this week, Google SVP Nick Fox confirmed the company has not ruled out advertising inside the Gemini app. Fox noted that learnings from AI Mode experiments would “likely carry over” to Gemini’s monetization strategy.

There is one carve-out: users of Gemini’s Personal Intelligence features, specifically those who connect Gmail, Photos, and YouTube to the assistant, will not see ads. But for the broader user base, ads appear to be a matter of when, not if.

This follows Google’s aggressive AI Mode rollout, which now reaches 75 million daily users and already supports shopping ads with in-search checkout. The ad infrastructure is being built in real time.

The consumer trust problem is real and growing

The Ipsos survey data paints a clear picture. Nearly two-thirds of American adults report that seeing ads in AI-generated search results reduces their trust in those results. Fewer than 25% said ads had any positive effect on their experience.

Meanwhile, Semrush research shows that when AI Overviews appear on a search results page, click-through rates on the listings below drop by roughly 42%. AI Overviews now show on approximately 13% of all Google queries, and that number is climbing fast.

The counterpoint from Google’s perspective: it is working. Ads appear alongside 25.5% of AI Overview results, up from just 5.17% in early 2025, a 394% increase. And monetization rates for those ads match traditional search ads. Google’s Q4 2025 search revenue climbed 17% year-over-year despite the AI transition.

The platforms are diverging on strategy. While Google and OpenAI push deeper into AI advertising, Perplexity has permanently abandoned its ad program and gone subscription-only. The market is splitting into ad-supported and ad-free AI experiences.

What this means for marketers

The math for marketers is getting complicated. AI ad placements are growing rapidly and the inventory is performing on par with traditional search. But the trust data suggests a ticking clock. If consumers increasingly associate AI-generated answers with advertising influence, the credibility of both the platform and your brand suffers.

Early movers into Gemini advertising will likely benefit from lower CPMs and less competition, similar to the early days of any new ad format. But the trust discount is real. Walmart’s March 2026 disclosure that conversion rates for products sold inside ChatGPT were three times lower than traditional click-through purchases shows that consumer skepticism already impacts the bottom line.

The smartest play right now is a diversified approach: test AI ad formats for awareness and discovery while maintaining your owned channels for conversion. Watch Perplexity’s subscription model closely too. If ad-free AI search gains meaningful market share, the brands cited organically in those answers will have a significant trust advantage.

For a deeper look at the tools shaping this space, see our guide to the best AI marketing automation tools.