On Thursday, July 9, Google introduced a suite of innovative advertising tools and solutions powered by its Gemini technology, including the locally developed YouTube BrandStack, aimed at streamlining the processes of ad creation and campaign management.
One of the standout features is the ‘Business Agent for Leads,’ a new format for Google Search ads that integrates an AI agent powered by Gemini. This feature allows users to engage in real-time conversations with the agent directly within the search results page, enabling them to ask questions and receive answers without navigating away. The AI is trained on the advertiser’s website to help convert inquiries into qualified leads, and it is currently in beta testing in India, where Indian edtech company Upgrad has been granted early access to attract potential students.
Additionally, Google introduced ‘Ask Advisor,’ another AI agent powered by Gemini that provides tailored recommendations to marketers. This tool analyzes data from various Google products, including Google Ads, Google Analytics, and the Google Marketing Platform, with plans to incorporate insights from Merchant Center in the future.
This announcement comes at a time when artificial intelligence is rapidly transforming the digital advertising landscape. Google and Meta, two leading companies in this sector, have leveraged AI in their advertising strategies for years, transitioning their focus from basic chatbots to more sophisticated autonomous AI agents.
In April 2026, Google reported a significant advertising revenue of $77.25 billion for the first quarter, marking a 15.5 percent increase compared to the previous year. YouTube contributed $9.88 billion to this total. Advertising, which constitutes roughly three-quarters of Google’s revenue, enables the company to invest nearly $200 billion in AI infrastructure.
Roma Datta Chobey, Managing Director of Connected Consumer Commerce at Google India, stated, “Gemini is now the driving force enhancing growth for our clients across our advertising products as we evolve from marketing automation to marketing intelligence, paving the way for a new era where AI serves as a strategic partner in growth.”
The influence of AI on search behavior is also notable. Google reported that user inquiries made through AI Mode are three times longer than typical search queries. In India, 84 percent of users indicated they make quicker decisions, and 87 percent reported increased confidence in their choices when using AI Mode.
While the digital advertising model for these new interfaces is still developing, Google noted that Gemini has been effective in reducing irrelevant ads by 40 percent. Chobey commented, “As AI agents become prevalent, longer and more in-depth user queries provide brands with greater opportunities to respond more effectively.”
The company is also collaborating with Indian e-commerce platforms like Walmart-backed Flipkart to implement its Universal Commerce Protocol (UCP) in India. Launched earlier this year, UCP establishes an open standard for communication between AI agents and online shopping systems.
Google has also enhanced its Asset Studio, a platform that helps merchants and advertisers generate AI-created ad assets. Users can now create advertisements that accurately reflect their brand identity using natural language prompts, and they can import marketing briefs, reference images, and brand guidelines to further tailor the generated content.
In terms of YouTube offerings, Google has introduced the YouTube Affiliate Partnerships Boost ad format, which facilitates the integration of authentic creator content into brand marketing campaigns.
The surge in AI-generated advertising content has raised questions regarding its effects on the creator economy, which relies heavily on brand partnerships. When asked about the role of creators in this increasingly AI-driven advertising ecosystem, the company emphasized that both creators and AI play crucial roles, as genuine storytelling that resonates with consumers remains essential for building brand loyalty.
YouTube BrandStack, an all-in-one automated solution developed in India, streamlines campaign planning, purchasing, and measurement. Axis Max Life Insurance was the first to utilize this platform during the cricket season and saw an 18.4 percent increase in brand searches and 23 percent more qualified leads compared to traditional television advertising.
Moreover, YouTube generates 1.9 times the return on investment for total media compared to conventional OTT platforms and linear television.
AI Max for Shopping utilizes Merchant Center feed data to gain a deeper understanding of products, enhancing the impact of campaigns. AI Max for Search Campaigns is currently the most rapidly growing AI-powered Search Ads product, according to Google.
The AI Brief feature, powered by Gemini, assists advertisers in refining their campaigns by interpreting the subtleties in marketing briefs, adhering to brand guidelines, and providing real-time previews of ads that can be adjusted to align with brand vision.
Dynamic Remarketing expands on Retention Only Mode in Performance Max, automatically re-engaging valuable lapsed or loyal customers with customized creative content.
Demand Generation has now been extended to Google Maps, enabling advertisers to connect with potential customers at critical moments, such as when they are near or entering a store. Advertisers also have the option to incorporate product videos from Merchant Center into their Demand Generation campaigns to showcase their offerings more effectively.
Google’s Meridian, an open-source Marketing Mix Model, has been integrated into Google Analytics 360 to assist businesses globally in analyzing cross-channel and first-party data in a unified manner. Alongside this, a new metric, Attributed Branded Searches, will help advertisers evaluate how exposure to YouTube video ads influences subsequent branded searches.
Lastly, Google announced updates to its Merchant Center Tools, aimed at helping merchants enhance their visibility and track the performance of their products more effectively.
