AI takes over search, ads and chat
AI have truly taken the driver’s seat. Let’s take a look:
Google’s search box gets its biggest upgrade in 25 years, Display Ads are retired as a standalone campaign type, and the Ads Terms of Service expand Google’s use of AI. At the same time, brands’ AI agents are moving into Snapchat’s chat feed, and Google unveiled 100 launches at I/O 2026.
Find out more in this month’s Xtracts.
Get fully up to date with the June edition of Xtracts, your digital news digest.
Google’s search box has got its biggest upgrade in 25 years
At Google’s I/O event on May 19, 2026, Google announced the biggest upgrade to the search box in over 25 years. The new “intelligent Search box” has been rebuilt with Gemini 3.5 Flash as its engine and is now rolling out globally.
What’s new? The search box expands dynamically, giving you space to describe exactly what you’re looking for. It suggests questions with AI that go beyond classic autocomplete. And you can now search across formats – text, images, files, videos and even open Chrome tabs.
Google also unveiled new Search Agents. These are AI agents that work 24/7 in the background and monitor things like the housing market or product prices for you. At the same time, Search can now build custom mini-apps directly in the search result, such as a fitness tracker or a moving plan.
For brands, this means people are writing longer and more conversational searches. Your content should therefore be structured so that it can be cited by AI – not just ranked.
Source: The Keyword, Google
Google updates Ads Terms of Service ahead of July
On June 2, Google confirmed that its Ads Terms of Service will be updated as of July 1, 2026.
The changes require no action from advertisers, but they are worth reading. The new terms expand Google’s use of AI and automation in the ad system and clarify how your inputs (text, images, URLs) can be used across the platform. At the same time, it is emphasized that you as an advertiser are responsible for reviewing, approving and removing automatically generated assets.
Consultant Kirk Williams has criticized the shift, saying the previous terms gave advertisers more options to opt in and out of AI features. It signals a continued shift of decision-making power from the advertiser to Google’s systems.
Source: Search Engine Land
Google pulls the plug on Display Ads as a standalone campaign type
On May 26, 2026, Google confirmed that Display Ads will be retired as a standalone campaign type. Going forward, all Display buys must be done via Demand Gen.
It is the biggest overhaul of Google’s ad model in several years. Display Ads have existed for nearly 20 years and have been a standard tool for anyone looking to reach audiences across the more than 2 million sites, apps and video placements on the Google Display Network.
From June 2026, Google will start rolling out a migration tool, so you can move your existing Display campaigns to Demand Gen. Later in the year, you will no longer be able to create new standalone Display campaigns. That leaves Demand Gen as the single visual advertising tool across YouTube, Discover, Gmail, Maps and GDN.
You can still choose to run only on GDN if you want. But Google is steering the direction, and it’s clear that AI-driven campaigns are the future.
Source: Search Engine Journal
Snapchat introduces AI Sponsored Snaps with conversational ads
Snapchat has launched AI Sponsored Snaps – a new ad format that lets brands bring their own AI agents directly into the app’s chat feed. This means that users can have personal conversations with the brand’s AI in the middle of an ordinary dialogue with friends.
Snapchat says the format builds on the successful Sponsored Snaps format, which already delivers 22% more conversions and nearly 20% lower cost-per-action. With nearly one billion monthly users and 950 billion chat messages in Q1 2026 alone, the chat feed is a large and engaged channel.
85% of all Snapchat users engage in the chat feed daily. For consumer brands looking to test conversational ads, it is an interesting new format to have in the media mix.
Source: TechCrunch
Google I/O 2026: 100 launches – and what matters most for marketers
On May 20, 2026, Google held its annual I/O event and unveiled a full 100 product announcements. Here is what you as a marketer should take note of.
Gemini 3.5 Flash is Google’s new flagship and now powers AI Mode as the default globally. AI Mode has crossed 1 billion monthly users in just one year. The search box gets its biggest upgrade in 25 years: You can now search across text, images, files, videos and Chrome tabs in one and the same field.
Search agents are the next big thing. These are AIs that work 24/7 in the background and monitor things like prices, stock status or news on the user’s behalf. Search can also build custom mini-apps on the fly, such as a wedding tracker or a moving plan.
For e-commerce, Universal Cart is a major piece of news. It is an intelligent cart that follows the user across Search, Gemini, YouTube and Gmail. The Universal Commerce Protocol makes checkout possible directly on Google. And Personal Intelligence is now being expanded to nearly 200 countries and 98 languages without a subscription.
Source: The Keyword, Google
