Google signals AI and creator-driven changes for digital ads and commerce in 2026

New Delhi: Google has signalled a significant shift in how it sees the future of digital advertising and commerce, highlighting changes in consumer behaviour, technology, and the use of AI.

In her third annual letter, Vidhya Srinivasan, Vice President and General Manager of Ads & Commerce at Google, outlined key trends and developments expected in digital advertising and commerce in 2026. She highlighted how AI is reshaping the way consumers search, shop, and interact with brands, while emphasising the role of creators and technology in influencing purchase decisions.

According to the letter, traditional trade-offs between speed and certainty in shopping are diminishing as AI tools allow consumers to make informed decisions quickly. “Consumers are continuing to search, scroll, stream and shop, and now, AI is proving that speed and certainty can go hand in hand,” Srinivasan said.

YouTube and creators

YouTube, described as the most-watched streaming platform in the US for nearly three years, is increasingly central to consumer discovery. Creators on the platform are positioned as trusted tastemakers, helping viewers move from exploration to purchase.

Google said it is exploring AI-powered tools to match advertisers with creators more effectively, connecting organic influence with measurable business outcomes.

AI-driven search and ads

Srinivasan noted that search is evolving beyond keywords to include conversational queries, photos, and brainstorming prompts. “This shift is turning Search into a more powerful tool for discovery, where ads can inspire and answer all at once,” she wrote.

Google has been testing new ad formats under AI Mode, which integrates sponsored retailer listings alongside organic recommendations. A new feature, Direct Offers, allows businesses to present tailored offers to consumers ready to purchase, including options such as loyalty benefits and product bundles.

Agentic commerce and protocols

The letter also discussed agentic commerce, in which AI agents handle shopping tasks on behalf of consumers. Google has developed the Agent Payments Protocol (AP2) and, more recently, the Universal Commerce Protocol (UCP), which standardises interactions between AI agents and merchants, including secure digital identity verification and payments. UCP is currently being used in the US to enable in-app purchases from retailers like Etsy and Wayfair, with plans to expand to Shopify, Target, and Walmart.

Gemini AI and advertising tools

Srinivasan highlighted Google’s Gemini 3 model as a foundation for AI-powered ad tools. These tools, including Nano Banana and Veo 3, assist advertisers in producing creative assets efficiently and scaling campaigns. AI Max is being used to expand the reach of search campaigns, while ongoing work on measurement tools aims to consolidate data for better performance tracking.

Trust and data privacy

The letter emphasised the need for trust and responsible innovation. “As we empower agents to act on behalf of consumers and businesses, our rigorous standards for data privacy and security ensure that the fast lane remains the safe lane,” Srinivasan said.