Competitive Info: AI Search Ad Spend To Hit $26B By 2029.

The rise of AI-powered search is expected to reshape the digital advertising landscape, challenging long-standing strategies and business models in traditional keyword-based search. Brands heavily invested in legacy search platforms may face disruption as AI search tools gain traction.

According to Emarketer, spending on AI-driven search advertising is forecast to grow dramatically — from just over $1 billion this year to nearly $26 billion by 2029. This year, AI search ads are expected to account for 0.7% of total search ad spending, but that share is projected to surge to 13.6% within four years.

One of the major disruptions comes from how AI search experiences reduce the need for users to click through multiple traditional search results. This shift has raised concerns among analysts, with Emarketer noting that Google may delay widespread rollout of AI search until it has better data on the financial impact and user behavior.

These insights are based on Emarketer’s proprietary analysis, drawing from a mix of public data, research firms, government statistics, and expert interviews.

The report highlights how platforms like Google are already experimenting with monetizing AI search in more commercial-friendly sectors like consumer packaged goods (CPG). However, adoption rates vary significantly across industries. Financial services, telecom, tech, and healthcare are leading the way, showing faster adoption, while retail lags behind — largely due to concerns about ROI and negative impacts on traditional search performance.

Some industry experts compare AI search adoption to the mobile shift, noting that both offered low upfront costs, ease of use, and strong engagement levels. However, AI’s growth may be slower initially, held back by concerns over credibility, ROI, and the risk of cannibalizing established advertising revenue.

As AI continues to reshape search behavior, brands and platforms alike will need to rethink how they reach consumers in this evolving digital ecosystem.