Summary
AI Max, the next generation of Dynamic Search Ads, is exiting beta with enhanced performance and controls. Key data shows that using the full AI Max feature suite—search term matching, text customization, and final URL expansion—yields an average of 7% more conversions or conversion value at similar CPA/ROAS compared to using search term matching alone. This milestone underscores AI Max's ability to handle complex, unpredictable consumer searches by combining advertiser input with real-time intent signals.
Starting in September, Google will automatically upgrade eligible campaigns using DSA, ACA, or campaign-level broad match to AI Max. For DSA users, dynamic ad groups will transition to standard ad groups with all three AI Max features enabled and legacy URL controls preserved. ACA users will get search term matching and text customization enabled by default, while broad match users will have search term matching enabled. New DSA creation will no longer be possible via Google Ads, Editor, or API after September.
Actionable takeaways for ad ops decision-makers: 1) Voluntarily upgrade now to maintain full control and familiarize with new brand, location, and text controls. 2) Turn on all AI Max features to maximize results, and use one-click experiments to test performance impact. 3) Prepare for automatic upgrades by reviewing legacy settings to ensure alignment with business needs. The transition aims for performance stability, mirroring legacy setups in the upgraded campaigns.
Analyst Note
The automatic upgrade of Dynamic Search Ads, automatically created assets, and campaign-level broad match settings to AI Max marks a definitive shift in Google Ads' architecture. What's notable here is the deprecation of legacy controls in favor of a unified AI-driven system, signaling that manual keyword management and rule-based targeting are being phased out. For ad ops professionals, this transition carries immediate practical implications: the loss of granular control over query matching and creative assembly.
While AI Max promises performance gains (e.g., 7% more conversions), the forced migration eliminates the ability to maintain separate DSA and broad match strategies for specific use cases. The timing aligns with broader industry trends—privacy changes eroding attribution signals and Google doubling down on automated solutions to maintain ad efficacy. Competitively, this reinforces Google's lead in AI ad tools, but it also reduces differentiation for advertisers who relied on custom DSA setups to capture long-tail queries.
UA managers must now recalibrate around AI Max's three feature pillars—search term matching, text customization, and URL expansion—while monitoring for unexpected shifts in spend distribution or brand safety risks. The key implication: campaigns will become less transparent, requiring a shift from 'managing keywords' to 'steering AI via controls.'
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