Last weekend, Google launched AI Mode in New Zealand.
This powerful AI search experience is Google’s answer to win back eyeballs from ChatGPT and similar generative AI search platforms.
Our Google rep visited our offices this week to discuss what AI Mode means for digital marketing.
Where to find Google AI Mode
“AI Mode” is a new tab in Google’s search results, just to the left of the classic “All” tab.
You can also access AI Mode on the right side of the usual Google Search bar.
The All tab that you’ve used for years isn’t going anywhere. It’ll keep showing Google’s quick-answer AI Overviews at the top of your search results, which we’ve had in NZ for several months now.
AI Overviews, a type of rich snippet, have been Google’s first line of defence to compete with ChatGPT, giving you instant, summarised answers to all kinds of questions, from the tallest mountain in the South Island (it’s Aoraki/Mount Cook!) to the year Wellington was announced our capital city (it was 1865!).
AI Mode takes this lightning-fast fact-finding even further, transforming the Google Search you know and love with fully conversational answers. You can ask quick follow-up questions, combine text and images as part of your search, and dig deeper without returning to the traditional Google Search results.
AI mode does this with the query fan-out technique, in which it makes multiple searches across multiple data sources, using advanced reasoning to provide an easy-to-understand response in seconds. The AI-generated response includes text with sources, examples, and helpful web links to relevant pages, products, and locations.
Powered by Gemini 2.5, AI Mode represents the biggest shift in search since the late 90s. Google now understands search intent better than ever.
Why should I care about Google AI Mode?
- Increased zero-click searches: AI Overviews have already increased zero-click behaviour in New Zealand (digesting a quick answer and not clicking through to read further). AI Mode keeps users inside Google’s own ecosystem even longer, spending time in Google’s generative search mode as opposed to browsing individual websites.
- Impact on Google Ads: Compared to traditional search, AI Mode directly resolves queries, such as comparing products and ‘this versus that’ queries, and we predict that Kiwi advertisers can expect to see lower CTRs (click-through-rates) due to the massive increase of impressions, compared against a potentially lower percentage of clicks. As of now, expect performance volatility as general traffic reallocates between All vs AI Mode tabs.
- Competitive landscape: AI Mode responses directly place Google directly against ChatGPT and other LLM platforms. The battleground for everyday Q&A, discovery, and even commercial intent is heating up.
- Changes in search behaviour: Search queries are 2-3 times longer on average, often involving multi-part questions (which Google treats as separate queries). Users are treating Google AI Mode as they do other LLM platforms, directly using the search bar for planning and asking follow-up questions that expand on initial ideas.
- Personalised AI results: Sometime soon, users can allow Google to consider past search history and Gmail data when searching, enabling AI Mode to return a fully personalised answer tailored to the users’ needs. Looking for “hotel rooms in Queenstown”? AI Mode will already know when you’re visiting based on flight bookings in your email, and generate an AI response that reflects that.
How does Google AI mode affect my Google Ads?
Google has already implemented paid ads for AI Mode on mobile in the United States, and they’re coming to New Zealand near the end of this year.
This means digital marketers will be looking at a big switch in strategy. Instead of relying on simple Search ads targeting specific keywords, you’ll want to start building AI-powered ad campaigns: making use of Demand Gen, Performance Max, and AI Max.
First, your ads need to get to your target audience. With more people searching in a detailed, conversational style, you can no longer focus all your efforts on targeting just exact keywords. Leveraging broad match and keywordless technology can help get your ads in front of an audience making ever-more specific search queries.
Second, your ads need to connect with your target audience. Using AI Max, users can be served ads that are automatically customised to match their search intent. So if they’re searching for “the best SEO agency in Auckland”, Google AI generates text ad copy that meets that need and links to the most relevant landing page in your domain.
These shifts will require flexibility in both keyword targeting and ad copy.
Above all, ad quality still reigns supreme, but you’ll need to adopt an AI-focused approach to meet the specificity users now expect.
How does Google AI Mode affect SEO?
Good news: if you’re employing best practices to rank higher on Google, you’re already halfway there.
SEO is fundamentally about optimising pages to best serve a user’s needs, whether they’re looking for information about a product or are ready to buy. If your pages feature helpful, high-quality web content, they’re already primed to appear in AI Mode.
That being said, you’ll want to ensure AI can easily read your web content, by employing clear schema markup.
And with the rise of lengthier queries, FAQs and helpful resources will be more important than ever.
How brands should deal with Google AI Mode
- Get your Google PPC strategy AI-ready: Review your current Google Ads accounts, making sure the fundamentals are right before you adopt AI Max. When you do make the switch, slowly roll it out, broadening your usage without making drastic changes.
- Experience AI Mode ads in advance: Ads are already live in the United States on mobile. Using a VPN, you can experience how they work first-hand—essential if your business targets an international audience.
- Follow SEO best practices, but with an AI optimisation twist: Keep creating helpful, relevant content that follows EEAT (Experience, Expertise, Authoritativeness, Trustworthiness). Focus on reputation management and your off-site presence; Google cross-references different sources in its answers, and you’ll need those positive reviews to appear in its AI-powered responses!
- Know what metrics matter for your business: AI Mode breaks down long, conversational queries into multiple queries that appear in Google Search Console (GSC). This change has affected some metrics like Average Click-Through-Rate (CTR) and Average position, so you’ll need to consider how significant they are for your business to begin with.
What’s the future of digital marketing for Kiwis?
Our Google rep told us that in the three months AI Mode has been available in the United States, clicks to publishers’ websites have stayed consistent. Zero-click searches have risen due to vastly increased impressions, not decreased clicks.
Given this, we expect AI Mode to have a big impact on CTR; both organic and paid CTRs will decrease.
However, it’ll definitely give ChatGPT a run for its money. People who use GPT might go back to Google. “It’s already here, it’s easy to use.”
People will always want to buy things, but AI Mode will affect the way they research, possibly shifting the process to the lower end of the funnel.
For ads, there won’t be as many clicks to go around, causing higher CPCs (cost-per-clicks) as a result.
Likewise, greater reliance on AI responses means the goal of SEO is no longer just to rank: the goal is to be the answer Google trusts.
Stay ahead with Search Republic
Google AI Mode means that the search experience will never be the same again.
Is your brand ready for artificial intelligence—or even AI SEO? Our AI Visibility Audit analyses how your brand is performing across different generative search engines, including Google AI Mode.
Get in touch to learn how we can develop your digital marketing strategy to show up within AI-powered responses.
Book a 15-minute strategy call
brad@searchrepublic.co.nz
