How AI Works in Google Ads and Why It’s About to Change Everything

Google is about to make the biggest shift in its history, one that will redefine how customers find, compare, and buy from your business online.

By the end of 2025, the tech giant will roll out AI-powered search results fully integrated with ads, marking the biggest change to its business model in 25 years. For UK businesses that depend on Google for visibility or sales, understanding how AI works in Google Ads is now critical to staying competitive.

Google Just Flipped Its Own Business Model

For decades, Google’s business was simple: people searched for something, saw a list of links, and Google made billions when they clicked on sponsored results. That model brought in over £150 billion a year globally, until AI came along.

Now, with the rise of conversational tools such as ChatGPT, people no longer want to sift through ten websites to find an answer. They want a quick, accurate response, with context and recommendations built in. Google saw that shift and decided to own it rather than fight it.

That’s what AI-powered search (also known as AI mode) is all about. Instead of showing you a list of blue links, Google’s AI will give you a personalised answer that reads more like a chat. And soon, ads will appear directly inside those AI answers, not just beside them.

When a customer types, “I’m training for my first half-marathon and need good running shoes under £150,” Google’s AI won’t just show ads for “running shoes.” It will analyse the full context: training goals, budget, foot type, etc. Then, it will match them to the most relevant products.

That’s a complete departure from the old keyword game.

The End of Keywords and the Start of “Conversations”

Traditional search marketing has always revolved around keywords: “best pizza near me,” “cheap accountants in London,” “how to get rid of damp.”

However, AI search changes the dynamic. Instead of short phrases, people are asking long, natural questions that reveal intent, emotion, and budget.

In other words, Google is learning who your customers are, not just what they type.

For UK businesses, that means your digital strategy can’t rely on a few keywords anymore. You’ll need to optimise around intent and context, or the reasons behind a search, not just the words themselves.

Here’s an example:

• Old world: “accountant Northamptonshire”
• New world: “I’m a freelance designer earning £70k. What’s the best accountant for small creative businesses that need help with VAT?”

That second query gives Google rich data about the user’s profession, income bracket, and problem. If your website or ad feed reflects that detail through strong content, clear positioning, and up-to-date product info, Google’s AI is far more likely to recommend you.

Your Brand Is Now Your Targeting Strategy

In the new AI search environment, your brand reputation becomes your ad targeting. Google’s AI is building detailed brand profiles for every business. It reads your web content, reviews, blog posts, and social media. It analyses tone, visuals, and even customer sentiment. All of that determines whether your business appears as a trusted recommendation when someone searches.

If your website looks dated, your reviews are inconsistent, or your social channels are inactive, Google will interpret that as a sign of weak brand quality. Your visibility will drop.

Think of it as digital hygiene. The cleaner and more consistent your data and brand presence, the better the AI will understand your business and match you to real customers.

This is especially critical for small and mid-size UK businesses, which often compete on trust and credibility rather than scale. In the old Google, you could pay your way to visibility. In the new one, credibility is currency.

Feed Hygiene: Teaching AI to Find Your Ideal Customers

In today’s AI-driven landscape, Google Ads services rely heavily on “feed hygiene” the practice of maintaining clean, detailed, and conversational product data to maximize performance. When feeds include accurate titles, rich descriptions, pricing, and relevant attributes, Google’s AI can better optimize across its automated services like Performance Max and Smart Shopping campaigns, improving targeting, creative generation, and connections with high-intent shoppers for stronger campaign results.

Here’s what that means in practice:

• If you sell products, your listings should answer questions, not just list specs. For example, instead of “13-inch laptop, 16GB RAM,” describe “a lightweight 13-inch laptop ideal for video editing and travel, with 16GB RAM for smooth creative workflows.”
• If you offer services, build pages that respond to real human queries, such as “how to find a reliable plumber in Birmingham”, rather than stuffing in “plumber Birmingham” 15 times.

The cleaner and richer your information, the better Google’s AI understands what you sell and who to show it to.

Google Ads Is Now an AI Training System

If you run Google Ads, here’s the biggest shift of all: your ad account is no longer just a campaign dashboard. It’s now an AI training system.

Every signal you feed into Google, from click-through rates to purchase data, teaches the system what a valuable customer looks like. The more accurate your data, the smarter your ads become.

Therefore, instead of manually tweaking bids or obsessing over single keywords, your focus should shift to teaching the AI what “success” means for your business. That could be:

• A lead that converts into a paying client
• A customer who makes repeat purchases
• A higher-margin sale

Once Google learns that pattern, it’ll start finding more people like them automatically.

The businesses that feed the system high-quality data early will enjoy what can only be called “compound learning”. Every week, the AI gets smarter at finding your ideal customers, while competitors who lag behind will struggle to catch up.

What You Should Do Right Now

AI is already reshaping Google Ads, and the rollout will accelerate before 2025 ends. Here’s how to prepare:

1. Clean up your online presence

Ensure your brand voice, visuals, and reviews are consistent. Google’s AI reads it all.

2. Use Performance Max campaigns

Performance Max campaigns are already integrated with AI-driven search and conversation-based targeting.

3. Feed better conversion data

Track which enquiries or purchases deliver real value, not just clicks.

4. Create conversational content

Optimise your web content and blog posts to mirror natural questions. AI search favours businesses that “speak human.”

5. Invest in long-term data quality

Treat every campaign like an AI lesson. The system compounds what it learns, and early movers will dominate later.

Remember, understanding how AI works in Google Ads is more than just staying current. It’s also about survival. By taking a proactive approach to achieving greater online visibility, you can better position your business where potential customers can see it.

Will People Still Click on Ads?

There’s one big unknown: will users still click on ads when they can get what they need from an AI conversation?

Maybe fewer people will click. However, those who do will be much more likely to buy. Someone who’s spent five minutes discussing their exact needs with Google’s AI isn’t casually browsing; they’re ready to act.

That means fewer clicks, but far higher intent. For advertisers who prepare early, that’s a goldmine.

Adapt or Be Invisible

Google’s new AI mode isn’t a trend. It’s a turning point. The way customers search, shop, and choose businesses is about to change faster than it has since Google launched.

For UK businesses like yours, this is both a threat and an opportunity. Those who adapt now by improving their data, sharpening their brand, and embracing AI-driven ads will dominate their markets. Those who wait will be playing catch-up with algorithms that no longer speak their language.

At Springhill Marketing, we help local businesses stay ahead of the curve by making AI work for you, not against you. Whether you’re starting fresh or looking to adapt existing campaigns for the AI-driven search era, we’ll ensure your data, strategy, and messaging are tuned for success. Get in touch today, and we’ll create a Google Ads strategy tailored to your business.

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