Google’s search revenue drops 12% as AI Mode queries grow

Google’s year-over-year query growth hit a five-year high, though the definition of an AI Mode query—including multi-turn conversations—remains unclear. Schindler noted that click-through rates for sponsored and organic listings in AI Mode are already similar, signaling a shift where paid and organic placements compete directly within answers. The company plans to expand AI Mode ads internationally and introduce multi-turn ads in the U.S., aiming to bridge the revenue gap by increasing ad placements inside AI-generated responses.