In 2026, Google Ads is pushing AI into almost every part of its ad system, from keyword search to building entire campaigns. Businesses that understand this direction will adapt faster than their competitors.
AI Max officially exits beta
AI Max, previously an experimental feature, is now a core feature available in full, with more precise targeting and creative capabilities. Tests found that Search campaigns with AI Max fully enabled saw an average of 7% more conversions at a similar cost per result.
Dynamic Search Ads are gradually being replaced by AI Max
Google has announced plans to retire the classic Dynamic Search Ads (DSA). Campaigns using automatically created assets with campaign-level broad match will start being upgraded to AI Max automatically from September 2026. Businesses still using classic DSA should start learning how to set up AI Max in advance.
Performance Max expands to Waze, with more detailed reporting
Performance Max campaigns for store goals now include Waze as an ad placement, so businesses can appear as recommended pins on users' maps. Google has also added asset group–level reporting, budget breakdowns by channel and more granular placement exclusion controls, things marketers have requested for a long time.
New AI-powered ad formats
Google has launched new ad formats such as Conversational Discovery Ads and Highlighted Answers, designed to interact with users in real time and in a more personalised way, in line with changing search behaviour in the age of AI search.
Real-Time Policy Reviews cut ad approval wait times
Real-time policy review lets marketers see ad issues immediately while creating Responsive Search Ads, instead of waiting hours for review results as before, so campaigns can be fixed and launched much faster.
- Start testing AI Max before classic DSA campaigns are automatically upgraded in September 2026
- Use the new asset group–level reports to understand which elements of Performance Max are working well
- Businesses with physical stores should consider running Performance Max on Waze
- Use Real-Time Policy Reviews to reduce the time campaigns sit waiting for approval
Summary
Google Ads' direction for 2026 is clearly towards full automation. The Markettung team helps clients adapt their campaigns to these changes so they don't miss opportunities or get caught off guard by automatic upgrades.