Will paid search disappear in the AI era?

The short answer is no – but the conditions are changing rapidly, which makes it crucial to adapt your strategies.

Fewer clicks and higher costs

No one has missed that AI is the latest development across every sector. Google’s search results are, of course, no exception, and we are increasingly met with the message that paid search advertising on Google (SEM) has lost its relevance.

Through its search results, Google is driving the development of AI and has launched both AI Overviews – an AI-generated summary or overview of information related to the search query – and AI Mode, which appears as a separate tab where users can interact with the AI and, for example, ask follow-up questions.

There are two major changes in Google’s search results due to the introduction of AI that have a direct impact on Google Ads:

AI Overviews reduce click-through rates (CTR): A 2025 study showed that CTR dropped by 47.5% on desktop and 37.7% on mobile when AI Overviews were displayed. In other words, when AI Overviews provide an answer to a query, users are less likely to scroll further down the results page, and CTR decreases. This means fewer organic clicks, less ad space, more competitive auctions, and higher Cost per Click (CPC).
CPC is rising rapidly: Search Scientists found a 45% increase in average CPC in early 2025

At the same time, a LocaliQ study of 16,000 campaigns showed a year-on-year increase of around 13%. WordStream’s 2025 benchmarks revealed that 87% of industries reported higher CPCs, with sectors such as education and beauty seeing increases of more than 40%.

Do I need to change my Google Ads strategy in light of AI?

How people search matters. When traffic patterns change, Google Ads strategies must also evolve. What we do know is that Google still dominates. Even as AI search services grow, the numbers show that we still rely heavily on Google for information. In 2024, Google retained more than 90% of global search traffic and had over 3,000% more searches than ChatGPT – a figure likely to shift in 2025, but still a clear indication of Google’s continued strong position. ChatGPT currently handles around 37.5 million search-like queries per day, equating to a market share of about 0.25%.

This shift in search behaviour means that as specialists in Google and other search engine advertising, we need to work even smarter with bidding strategies, be more consistent in optimisation and follow-up, and more creative in communication. We also need to keep the customer journey in mind, recognising that it increasingly begins within the search results themselves.

The LocaliQ study also showed that website conversion rates often increased if users had been exposed to an AI result before visiting the site. Put simply, they had already received the information they needed to convert before arriving. This is a crucial effect of AI in search results from a CRO, UX and web strategy perspective, as it influences both how and when conversions occur.

Man holding a presentation in front of a coffee bar and colleagues.

Google’s response to new search behaviour – expanded ad placements

To meet the demand for AI and give advertisers opportunities to promote themselves within Google’s AI-generated results, ads are now being directly integrated into AI features. For example:

Ads are now displayed within AI Overviews
Testing has begun for ads within AI Mode, Google’s conversational search function

To access these placements, advertisers must make use of the following within their Google Ads campaigns:

Broad Match
Performance Max
Google’s new AI-driven “AI Max”

With extensive experience in Google advertising, we are accustomed to updates and changes in best practice. AI is simply another shift in the landscape – and our approach is clear: Google Ads isn’t dying, it’s evolving.

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Got questions about search advertising? Get in touch with us and we’ll be happy to help.