AI ad wars heat up as Google expands AI Max, OpenAI builds out ChatGPT Ads
Google is preparing to retire its 15-year-old Dynamic Search Ads format as OpenAI expands its advertising suite, signalling a new phase in AI-powered search and conversational advertising
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Published: Sep 24, 2026 12:24 PM | 2 min read
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- Google is enhancing its AI Max capabilities and plans to retire Dynamic Search Ads (DSA), with automatic migration to AI Max set to begin in February 2027.
- Recent updates from Google include unified reporting tools for tracking ad performance and the expansion of its AI Brief campaign creation tool to support seven additional languages.
- OpenAI is launching new advertising products for ChatGPT, including Sponsored Agents and integrations with platforms like Shopify and HubSpot, and has begun direct advertising purchases in India and other markets.
- The evolving landscape of AI-powered advertising raises questions for Indian advertisers regarding campaign automation, control, and budget allocation as both Google and OpenAI develop their respective advertising ecosystems.
The battle for AI-powered advertising is intensifying as Google expands its AI Max capabilities and prepares to retire Dynamic Search Ads (DSA), while OpenAI rolls out new advertising products and campaign management tools for ChatGPT.
Google's latest updates, announced on September 23, include unified reporting capabilities that allow advertisers to track the journey from a search query to the creative asset displayed and the landing page visited. The company has also expanded the global closed beta of AI Brief, its Gemini-powered conversational campaign creation tool, with support for seven additional languages.
The developments come as Google prepares to phase out Dynamic Search Ads, introduced in 2011, with automatic migration to AI Max scheduled to begin in February 2027. The transition marks a significant evolution in Google's search advertising ecosystem, moving from an established automated format towards more comprehensive AI-driven campaign execution.
Meanwhile, OpenAI is expanding ChatGPT Ads with new products, including Sponsored Agents, which allow users to interact with brand-sponsored AI agents, alongside AI-powered campaign creation and integrations with Shopify and HubSpot. The company has also opened direct advertising purchases through Ads Manager in India and other international markets.
While Google is integrating AI more deeply into its established search advertising infrastructure, OpenAI is developing an advertising ecosystem around conversational discovery and commerce.
For Indian advertisers and performance marketing agencies, the developments raise questions around campaign automation, advertiser control, measurement and how advertising budgets may evolve as AI-powered discovery expands.
exchange4media will examine these developments in a forthcoming deep dive, exploring how Google's transition towards AI-driven search advertising and OpenAI's expanding advertising ecosystem could reshape campaign management, advertiser control and the future of performance marketing.
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