Google plans to use its AI models, especially Gemini, to strengthen its advertising business, the company told advertisers and analysts. Google’s parent company, Alphabet, says AI will help improve how ads perform, how they are created and how customers are matched to products, as reported by Adweek.
Strong Revenue and User Growth
Alphabet reported $113.8 billion in revenue in the fourth quarter of 2025, an 18 percent increase from a year earlier. Within that total, Google Services generated $95.9 billion, which includes Search, YouTube and advertising products.
YouTube’s advertising revenue rose 9 percent, driven largely by direct response ads, even though network advertising was down 2 percent year over year. The company also said its cloud business brought in $17.7 billion, up 48 percent from the same period in 2024.
Gemini itself is also growing. Google says its AI app reached more than 750 million monthly active users, and its first-party models now process more than 10 billion tokens per minute through direct API use by customers.
AI Improvements Across Ads
Google executives said AI will bring “significant improvements” across three key areas of marketing:
- Ad quality and query understanding so ads match what users are searching for
- Ad tools with greater accuracy to help advertisers plan and execute campaigns
- AI user experiences that connect ads and products to the right shopper at the right time
Philipp Schindler, senior vice president and chief business officer at Google, said AI expands the range of places and ways businesses can reach customers. He said AI gives companies the ability to reach more customers in more places than ever before.
Why This Matters
Advertisers have been shifting budgets toward digital channels where better measurement and audience targeting are possible. Google’s use of AI across its ad offerings could help brands reduce waste and spend more efficiently. The company’s results suggest that direct response ads and automated tools are resonating with marketers.
The data also signals that Google is betting heavily on AI to keep its ad business growing even as competition intensifies from other digital platforms.
What Comes Next
Google plans to continue investing AI into search, video and cross-channel measurement. Advertisers should expect more AI-powered tools that help plan, optimize and measure campaigns with clearer insights.
As AI becomes central to how marketers work, Google’s investment in Gemini and related tools positions it as a core partner for brands seeking growth in an increasingly automated and data driven ad landscape.
