Ads in AI Search: How Sponsored Answers Work in ChatGPT and Google

Ads in AI search have moved from an idea to something many people now see every day. For example, when you ask an AI assistant for the best running shoes or a weekend hotel, the answer may now come with a sponsored suggestion attached. So it helps to know where the paid part starts.

So this guide explains how ads work in ChatGPT and in Google’s AI search features as of October 2026. It also covers what data the ads use, how to spot them and which settings give you more control. It is based on publicly documented policies and announcements, and TheJusGrow has not tested these products for this article.

Why ads in AI search are different from old search ads

Classic search ads, meanwhile, sit in a list of links. You can see that the top result is sponsored, and then you scroll past it if you like. AI answers work differently, because they summarise and recommend in one block of text.

As a result, that creates two new questions. First, can an advertiser influence what the AI says? Second, can you still tell the paid suggestion apart from the independent answer? Below, we look at how OpenAI and Google say they handle each one. Advertisers who want help managing the campaigns themselves can read our guide to an AI agent for Google Ads.

In fact, there is a long-standing principle here. The US Federal Trade Commission’s guide to native advertising says the test is whether people recognise an ad as an ad. It also recommends clear terms such as “Ad” or “Sponsored” rather than vague phrases like “Promoted”. That guide predates AI chat, but the same idea still applies.

How ads work in ChatGPT

First, some dates. OpenAI announced its approach to advertising on January 16, 2026. According to its help page on ads in ChatGPT, testing began in the US on February 9, 2026, with a phased expansion planned.

Here, then, is what OpenAI says about who sees ads and where they appear:

• Plans: ads may appear for Free and Go users. Plus, Pro, Business, Enterprise and Edu accounts do not have ads.
• Age: accounts that OpenAI identifies as belonging to minors do not see ads.
• Placement: ads can appear below a response when there is a relevant match, and they stay visually separate from the answer.
• Labels: ads are marked as sponsored.
• Exclusions: during the test, ads do not appear in the ChatGPT Atlas browser or in Temporary Chats.

In addition, OpenAI sets topic limits. It says ads are not shown near conversations about personal health, mental health or politics, and that political advertising is currently not allowed. Some regulated advertisers, such as health and financial services firms, may be eligible under strict criteria, but OpenAI says they are not placed near sensitive content.

However, the central promise is answer independence. OpenAI says ads do not influence ChatGPT’s answers, because ads run on separate systems and advertisers cannot shape or rank responses. That is a company claim, so outsiders cannot easily verify it. Still, it gives you a clear standard to hold the company to.

What data ChatGPT ads use, and what advertisers get

For ad selection, OpenAI says ChatGPT first uses the context of your current chat, plus your general location and language. If personalised ads are on, it may also use past chats, memory and how you have interacted with ads before. However, if you turn personalisation off, only the current chat informs the ads you see.

On the advertiser side, OpenAI says companies receive only aggregated performance data, such as views and clicks. In addition, it says advertisers never receive your chats, chat history, memories, name, email address, precise location or IP address. OpenAI also says it never sells your data to advertisers.

There is one exception, though. If you message an advertiser directly, that message is visible to the advertiser. So treat it like contacting any business.

Finally, OpenAI says personalised ads are not initially available in the European Economic Area or Switzerland. Rules and features may therefore differ depending on where you live.

How ads appear in Google AI Overviews

On Google, the help page for advertisers says ads can appear above, below or within AI Overviews. For ads inside the overview, Google also considers both your search and the content of the AI Overview itself.

According to Google, these ads still come from existing Search, Shopping and Performance Max campaigns, and they still have to win the normal ad auction. Ads above and below AI Overviews are available in more than 200 markets. By contrast, ads within AI Overviews are available in English in a shorter list of countries, including the US, Canada, India, Australia, the Philippines and Singapore.

Similarly, Google says it does not show ads in AI Overviews for sensitive categories such as adult content, alcohol, gambling, finance, healthcare and politics. Meanwhile, advertisers cannot target the AI Overview placement directly, and they cannot opt out of it either.

For shoppers, therefore, the practical point is simple. A product you see inside an AI summary on Google may be a paid placement. So look for a sponsored label before you treat it as part of the summary.

Ads in Google AI Mode: new formats and Direct Offers

AI Mode, by contrast, is Google’s more conversational search experience, and it is where Google is experimenting most. At Google Marketing Live on May 20, 2026, Google said it was testing new ad formats for AI Mode.

Format	What Google says it does	Status
Conversational Discovery ads	An ad that responds to your specific question, with creative built by Gemini	Testing
Highlighted Answers	Relevant ads can appear within a list of AI recommendations	Testing
AI-powered Shopping ads	Gemini selects products and writes an explainer for each one	Coming months
Business Agent for Leads	A chat agent inside the ad that answers questions from the advertiser’s website	Coming months
Direct Offers	Deals and promo codes shown to shoppers in AI Mode	Pilot, expanding

Importantly, Google says the two AI Mode formats in testing include an independent AI explainer, written by Gemini, next to the advertiser’s creative. It also says they will continue to be clearly labelled “Sponsored”.

Still, Highlighted Answers deserve the most attention. When you ask AI Mode for a list of options, a paid result could sit inside that list. Therefore, check labels item by item rather than assuming the whole list is independent.

Direct Offers, meanwhile, add discounts to the mix. Search Engine Land reported on October 7, 2026, that Google is testing a Direct Offer asset for advertisers. An eligible offer can appear below a sponsored result as a one-time code you can claim. Google’s May post also mentioned native checkout for merchants that use the Universal Commerce Protocol.

ChatGPT and Google compared

Question	ChatGPT	Google AI Overviews and AI Mode
Where ads appear	Below a response, separate from the answer	Above, below or within AI Overviews; within lists in AI Mode tests
Label	Marked as sponsored	“Sponsored”, according to Google’s AI Mode post
Who sees them	Free and Go users who are adults, in test markets	Search users in supported markets
Ad-free option	Paid plans, or Free with lower limits	No ad-free search option described
Sensitive topics	Not near health, mental health or politics	Not shown in AI Overviews for sensitive categories

If you are interested in where this is heading, our explainer on agentic commerce covers how AI assistants are starting to complete purchases, not just suggest them.

How to spot ads in AI search answers

Labels can be small, so build a quick habit. Use this checklist whenever an AI answer recommends a product, service or deal:

• Look for the words “Sponsored” or “Ad” near each suggestion, not just at the top.
• Notice visual separation, such as a card or box below the main answer.
• In ChatGPT, open the three-dot menu on an ad and choose “About this ad” to see why it appeared.
• Be careful with lists, since Google is testing ads inside lists of recommendations.
• Treat discount codes and limited-time offers as marketing until you have checked the seller.
• Compare prices on at least one other site before you buy.

Our guide on whether AI agents can find better prices explains why a single AI answer is rarely the full picture. Similarly, our overview of AI shopping agents shows where these tools help and where they fall short.

How to control or avoid ads in AI search

Your options, however, depend on the service. In ChatGPT, OpenAI documents several controls under Settings and then Ad Controls:

• Turn off ad personalisation, so only the current chat informs ads.
• Hide, dismiss or report individual ads from the three-dot menu.
• Clear your ads data, which OpenAI says can take up to 30 days to remove.
• Use a Temporary Chat, which OpenAI says shows no ads.
• Choose a paid plan such as Plus or Pro, which OpenAI says is ad-free.

Free users can also switch to an Ads-Free experience. However, OpenAI says it comes with lower message limits and reduced access to some features, such as image generation. Go subscribers would need to switch to Free first.

On Google, the documentation we reviewed does not describe a way to switch off ads in AI Overviews or AI Mode. Instead, you can manage general ad personalisation through your Google account settings. Either way, the most reliable protection is to read the labels and check before you buy.

What ads in AI search mean for shoppers

What follows is editorial judgement. Ads in AI search are not automatically bad, though. After all, they fund free access, and a relevant offer can save you money. The risk is blurred lines, because a confident AI recommendation feels more personal than a banner ad.

As AI assistants start buying on our behalf, the question becomes sharper too. If an agent compares products for you, you will want to know whether anyone paid for a result. That is one reason to keep humans in the loop for purchases, as our guide to AI agent safety recommends.

For now, the practical rule is simple: enjoy the convenience, but read the label. Then decide for yourself.

Ads in AI search: FAQs

Sources

• OpenAI Help Center, “Ads in ChatGPT” (accessed October 2026)
• Google Ads Help, “About ads and AI Overviews” (accessed October 2026)
• OpenAI, “Our approach to advertising and expanding access” (January 16, 2026)
• Google Ads & Commerce Blog, “A new generation of ads for the AI era of Search” (May 20, 2026)
• Search Engine Land, “Google Ads tests new Direct Offer asset for AI Mode promotions” (October 7, 2026)
• US Federal Trade Commission, “Native Advertising: A Guide for Businesses” (December 2015)