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AI Discovery

Google to Retire Dynamic Search Ads as OpenAI Expands ChatGPT Advertising Suite

Google has announced plans to phase out its 15-year-old Dynamic Search Ads format in favour of AI Max, with automatic migration set for February 2027, while OpenAI is simultaneously rolling out new advertising products for ChatGPT, including Sponsored Agents and direct ad purchasing in India and other markets.

By The Authority Desk2 min read
Image source: https://www.exchange4media.com/digital-news/ai-ad-wars-heat-up-as-google-expands-ai-max-openai-builds-out-chatgpt-ads-158556.html

Google and OpenAI are each advancing their AI-powered advertising platforms, setting the stage for intensifying competition in search and conversational advertising.

Google announced on 23 September 2026 that it is expanding its AI Max capabilities and will retire Dynamic Search Ads (DSA), a format it introduced in 2011. According to exchange4media, automatic migration of existing DSA campaigns to AI Max is scheduled to begin in February 2027.

Among Google's latest updates are unified reporting capabilities that allow advertisers to track the journey from a search query to the creative asset displayed and the landing page visited. Google has also expanded the global closed beta of AI Brief, described by the publication as its Gemini-powered conversational campaign creation tool, adding support for seven additional languages.

At the same time, OpenAI is broadening its advertising offering for ChatGPT. New products include Sponsored Agents, which allow users to interact with brand-sponsored AI agents, alongside AI-powered campaign creation tools and integrations with Shopify and HubSpot. OpenAI has also opened direct advertising purchases through its Ads Manager platform in India and other international markets.

Exchange4media characterised the two companies' approaches as distinct: while Google is integrating AI more deeply into its established search advertising infrastructure, OpenAI is developing an advertising ecosystem around conversational discovery and commerce.

The publication noted that 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.

Prepared with AI assistance and reviewed by the editorial team.

Sources

Google AI MaxOpenAI ChatGPT AdsDynamic Search AdsAI advertisingperformance marketingSponsored Agentscampaign automationsearch advertisingAI-powered advertisingIndia advertising

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