The news: AI search ad spending is gaining attention—and while AI search will only account for a fraction of search ad spending in 2026, growth over the next few years will be rapid. US spending on AI search will reach $2.08 billion in 2026 (1.3% of total US search ad spending) but will skyrocket to $25.93 billion by 2029, per our forecast—representing 13.6% of overall search ad spending.

Driving interest: Growth in AI search ad spending is being fueled by the expansion and user adoption of generative AI (genAI) platforms, new ad formats, and monetization opportunities.

• Rapid expansion of genAI platforms are coinciding with broader consumer adoption. AI search platforms with ads, including Perplexity and Google Search through AI Overviews, offer new options for sponsored answers in responses where users are more receptive because they are already expressing interest by asking a query. Thirty-eight percent of US adults already use AI search summaries for at least half of their searches, per YouGov—indicating a growing user base for these platforms.
• Monetization opportunities in AI are growing. Players like Perplexity are working with ad formats like sponsoring related questions to step away from the conventional—and automation’s growing influence on personalization will simplify adoption of new formats as they emerge.

Problems linger: Even as consumer adoption of AI search grows, some core issues with AI search advertising remain.