What Impact is AI Having on Paid Search Campaigns on Google?

John Walker

August 14, 2025

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5 min read

Artificial intelligence is changing how people interact with Google Ads. That’s because Google now places its AI-generated summaries, called AI Overviews (AIOs), at the top of many search results pages. These AI modules give users quick answers, often without needing to click on any links.

We call these “zero click searches” and while they’re helpful for users, for marketers they can shut off website traffic. The reality is that it’s not affecting all campaigns equally, but this has the potential to impact the impressions, clicks, and costs in your Google Ads campaigns. So here’s what you need to know to adapt.

‍What’s Happening on Search Results Pages (SERP)

Google’s AI Overviews appear most often for broad, informational searches like “what is digital marketing” or “how does solar energy work.” These overviews appear above the traditional 10 organic links and even above paid ads, in some cases.

In other words, they grab the prime real estate that ads used to dominate.

Google has been experimenting with placing ads above, below, and sometimes even inside these AI Overviews. While this helps Google preserve some ad revenue, these ad placements are inconsistent- sometimes your ad may be prominent and another time it’s far down the page.

‍The Types of Searches Most Affected

The types of searches that have a high likelihood of triggering an AI overview are general, informational searches like these ones.

“What is…” searches
“How to…” guides
“Why does…” explanations
General definitions or informational lookups
Broad category questions (e.g., “best ways to save energy”)

The types of searches that are less likely to trigger AIOs are more specific, transactional or shopping-related like these.

Brand-specific searches (e.g., “Nike running shoes”)
Transactional terms (e.g., “buy standing desk near me”)
Commercial-intent searches with product specs or prices
Shopping-oriented queries with strong purchase intent

This trend matters because the more your keywords fall into the “likely” list, the more your ads risk being buried below AI answers.

‍How AI is Affecting Paid Search Performance

Here’s what many advertisers are seeing:

1. Impressions are slipping for upper-funnel keywords. Even if your average ad position looks fine, the reality is fewer people are scrolling past the AI Overview to see your ad.

2. Clicks are falling on informational searches. Users often get their “answer” in the AI box and don’t feel the need to click further.

3. Costs-per-click are rising on high-intent keywords. As budgets shift away from top-funnel terms, advertisers pile into bottom-funnel searches tightening competition and driving up prices.

4. Performance is more volatile. Impression share can vary day-to-day depending on when and how AI modules appear for certain queries.

5. Attribution is shifting. If AI answers satisfy early research needs, fewer “assist” clicks will show up in your paid search funnel even if conversions later in the journey remain steady.

‍Why Google is Doing This

It’s unlikely that Google is harming its cash cow intentionally. Probably Google launched AI Overviews to fend off competition from AI search platforms like ChatGPT, Perplexity, and Arc Search.

If Google didn’t provide AI-driven answers, they risked losing search traffic to AI competitors. That said, they’ll likely work hard to ensure ads remain a visible and valuable part of the search experience; they just might look different in the coming months and years.

‍What This Means for Your Campaigns

If your paid search strategy relies heavily on broad, informational terms, you may see lower click through rates and higher costs-per-click on the most profitable keywords.

But if your strategy leans toward bottom-funnel, commercial-intent searches, you’re less exposed, but you may still feel price pressure as others shift budget into those same terms.

‍A Practical Playbook for Navigating AI’s Impact

Here are some steps you can take to adapt to these AI-driven changes.

1. Segment by Intent: Group your keywords by intent and then expect to cut or tighten bids on informational terms and defend (or even expand) transactional ones.

2. Monitor Above-the-Fold Presence: Track “Absolute Top Impression Share” by keyword type. If this drops while your rank remains steady, it means AI modules are taking the top real estate.

3. Differentiate Your Ad Creative: Since AI Overviews provide generic answers your ads should offer something they can’t including special offers, proof points or engaging visual elements that attract the attention of clickers.

4. Meet Users Before the SERP: If AI is capturing more research queries, reach those users earlier in the selection process by testing YouTube in-stream, Discovery, and Demand Gen ads with educational creative. Then retarget with search ads when they’re closer to making a purchase.

‍A Final Word

AI Overviews are now competing with your paid search for users’ attention and clicks. The way to adapt is to understand where in your marketing funnel AI is most likely to interfere and then adjust your keyword and bidding strategy accordingly.

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