Google is stepping up its AI game with the broader rollout of AI Mode in Search, offering users a more conversational, ChatGPT-style interface. Initially made available to a small group of testers in March via Google Labs, the tool is now being opened up to all Labs users in the US, with limited testing already underway among regular Search users.

This move marks a major strategic shift for Google Search. As users increasingly turn to generative AI for information discovery and decision-making, Google is under pressure to evolve its flagship product before rivals capture more market share. The stakes are high, and the competition is strong.

AI Mode vs Google’s Existing AI Overview

While Google already incorporates AI into Search through its AI Overview (AIO) feature, AI Mode represents a more ambitious step forward.

AIO, which was introduced as part of the Search Generative Experience, provides users with AI-generated summaries at the top of search results. It has been helpful for quick overviews but is often inconsistent. Responses can be vague or overly simplified, and the experience does not allow for further interaction or clarification.

AI Mode is designed to fix that. It lets users treat Google Search as a conversation. You can ask follow-up questions, refine your queries in real time and explore information in a more intuitive way. Instead of a single static answer followed by a list of links, you get an evolving dialogue that adapts to your needs.

There is also a strong commercial focus. AI Mode includes tappable visual cards for places and products, complete with live pricing, stock availability, reviews and contact information. This is powered by Google’s Shopping Graph, which features over 45 billion listings and updates more than 2 billion entries per hour. The result is a much more actionable and purchase-ready experience than anything AIO currently offers.

Another new feature allows users to revisit previous searches through a desktop side panel, making it easier to continue ongoing research projects. This kind of session memory is a key part of building user loyalty and improving engagement.

Tough Competition Ahead

Even with these enhancements, Google faces serious challenges in the generative AI race. Several rivals already offer polished, widely adopted tools.

ChatGPT remains the most recognised name in this space. OpenAI has built strong brand awareness, and its assistant is already being used by millions for everything from writing and coding to research and general productivity. Its memory features, integration options and customisation make it highly personal and responsive.

Perplexity AI has also gained traction, particularly among users looking for citation-based responses. Its core strength lies in transparency. Each answer is backed by linked sources, allowing users to verify information quickly. This approach builds trust and gives Perplexity a clear edge over traditional search engines when it comes to credibility.

In this context, Google’s AI Mode enters a highly competitive field. Users have grown to expect accurate, insightful and well-referenced answers. Anything less will feel inadequate by comparison.

Differentiation Through Context and Commerce

Google’s best chance of success lies in differentiating AI Mode as a practical, task-focused tool. While ChatGPT and Perplexity are strong at information and reasoning, Google is leaning into decision support and shopping.

AI Mode is particularly effective for queries like, “What are the best family-friendly hotels in Lake Tahoe with a pool and free breakfast under $300?” It does not just summarise reviews but shows availability, ratings and booking options. This is something other tools still struggle to deliver with the same level of depth and accuracy.

However, personalisation remains a weak spot for Google. Meta AI, for example, is gaining popularity for emotionally complex queries. Users are relying on it for social advice and personal problem-solving. According to Mark Zuckerberg, people are asking Meta AI how to approach difficult conversations with friends, partners or colleagues. This type of use case reflects a more human, emotionally aware interaction that Google has not yet mastered.

While Meta benefits from its vast social graph and behavioural data across Facebook and Instagram, Google has traditionally struggled to deliver that same level of contextual understanding. AI Mode may need to evolve further before it can compete on that front.

Implications for Marketers

The rise of AI Mode has clear implications for digital marketing. Traditional keyword-based SEO will no longer be enough. Content strategies must shift to accommodate natural language queries, layered questions and decision-based search behaviours.

Retailers and local businesses should prioritise product feeds and business listings, ensuring they are complete, accurate and regularly updated. Google’s Shopping Graph is central to AI Mode, and only businesses with optimised data will benefit from the visibility it offers.

Content marketers should also focus on building clear, authoritative, structured content. AI tools favour sources that deliver concise, factual and well-organised answers. Structured data, FAQs and expert explainers will become more valuable as conversational AI becomes a primary entry point for discovery.

A Defining Shift for Google Search

Google’s expansion of AI Mode marks the most significant change to Search since the introduction of featured snippets. Unlike AI Overview, which provides a static summary, AI Mode engages the user in an ongoing dialogue. This shift changes not only how people search but how they interact with brands and content online.

However, Google is entering a maturing market where tools like ChatGPT and Perplexity have already set a high bar. Success will depend on how well Google can merge its technical strengths—such as its shopping data and business listings—with a more responsive, human-like experience.

For marketers, the message is clear. Generative AI is now part of the discovery funnel, and strategies must adapt accordingly. Those who move early to optimise for conversational, context-aware search will be better placed to capture attention and drive results in the evolving search landscape.