
Google announced at Google Marketing Live two new ad formats that will show up in Google's AI Mode. Google said there are conversational discover ads and highlighted answer ads, and of course, they are labeled as "Sponsored."
Conversational Discovery Ads:
Conversational Discovery ads aim to have the ad answer a searcher's specific question.
The example Google provided was when someone searches, "I am trying to make my house smell like those fancy spas or a rainy forest. What are some low-maintenance ways to make my home smell amazing?" Here, Google will use the Gemini model to build creative tailored to that search, highlighting specific relevant features.
Here is a GIF of it in action:

Highlighted Answers
Highlighted Answers ads is when Google AI Mode provides a list of recommendations — like the best language apps for an upcoming trip — highly relevant, high-quality ads are eligible to appear on that list as a Highlighted Answer.
It kind of looks like part of the answer, but yea, it does have a Sponsored label on it.
Here is what that looks like:

Google needs to keep monetizing AI Mode, so it will continue to test new ad formats.
Forum discussion at X.

