Google’s decision to phase out Dynamic Search Ads (DSA) marks a significant shift in how search campaigns are built and optimised. For years, DSA served as a bridge between manual keyword targeting and automation, helping advertisers capture incremental traffic without exhaustive keyword lists.
Now, that bridge is being replaced with AI Max.
By September, advertisers will no longer be able to create new DSA campaigns, and existing campaigns using DSA, automatically created assets (ACA), or campaign-level broad match will be migrated to AI Max, whether they’re ready or not.
Shedding light on the update, a Google spokesperson said in a statement: “Keywords remain an essential component of a successful campaign strategy, providing the ‘fuel’ for our AI and for the intent signals necessary to drive performance. Rather than reducing their role, this upgrade is designed to help advertisers simplify management and expand beyond keywords while remaining in control.”
What’s Changing and When
Timeline Overview
Now (Phase 1 – Voluntary Upgrades):
- Advertisers can manually migrate to AI Max.
- Google provides tools to transfer campaign history, settings, and performance data.
- In-platform prompts encourage ACA and broad match users to upgrade.
September (Phase 2 – Automatic Migration):
- New DSA creation will be disabled across Google Ads, Ads Editor, and API.
- Eligible campaigns will be automatically upgraded to AI Max.
- Full migration is expected to be completed by the end of the month.
Why Google Is Making This Move
1. Evolving Search Behaviour
User search patterns are no longer predictable or linear. Queries are becoming:
- Longer and more conversational
- Context-driven and dynamic
- Influenced by real-time intent signals
Traditional keyword-based systems, even with DSA, struggle to keep up with this complexity.
2. Limitations of Legacy Automation
While DSA automated headline generation and landing page selection, it relied heavily on:
- Website indexing
- Static page signals
- Limited contextual awareness
AI Max, in contrast, operates on a broader intelligence layer, incorporating real-time data, user intent, and adaptive learning.
3. Consolidation of Tools
Google is streamlining its ecosystem. Instead of maintaining multiple overlapping automation features (DSA, ACA, broad match tweaks), AI Max becomes the unified framework.
AI Max vs. DSA: What’s Really Different?
Dynamic Search Ads (DSA)
- Generates headlines based on website content
- Targets queries not covered by keywords
- Directs users to relevant landing pages
- Limited control over creative and targeting nuances
AI Max
- Uses multi-signal AI modelling, not just website content
- Expands reach across broader, intent-driven queries
- Dynamically adjusts:
- Ad copy
- Landing pages
- Targeting parameters
- Offers new control layers, including:
- Brand safety settings
- Location targeting refinement
- Text and messaging guidance
Key distinction:
DSA reacts to content. AI Max predicts intent.
Performance Promise: What’s at Stake
Google reports that AI Max delivers:
- ~7% increase in conversions or conversion value
- Comparable efficiency (CPA/ROAS)
- Stronger results when full feature sets are enabled
AI Max isn’t just a replacement. It’s designed to outperform legacy systems.
The Role of Keywords Isn’t Dead
Despite the shift toward AI, Google emphasises that keywords remain essential:
- They act as input signals (“fuel”) for AI systems
- They help define intent boundaries
- They support strategic control and optimisation
What’s changing:
- Keywords are no longer the primary control mechanism
- They are now part of a broader decision-making system
What Advertisers Should Do Right Now
1. Migrate Early
Waiting for automatic upgrades means:
- Less control over campaign structure
- Limited ability to test configurations
- Potential performance volatility
Early migration allows:
- Gradual testing
- Custom setup adjustments
- Performance benchmarking
2. Audit Existing Campaigns
Before upgrading:
- Review DSA performance data
- Identify high-performing landing pages
- Analyse search term reports
This ensures valuable insights aren’t lost in migration.
3. Prepare Creative Assets
AI Max relies heavily on:
- Text variations
- Messaging inputs
- Brand guidelines
Providing strong creative inputs improves AI output quality.
4. Rethink Targeting Strategy
Move from:
Keyword-centric thinking
To:
- Intent-driven segmentation
- Audience signals
- Contextual relevance
5. Test and Iterate Aggressively
Post-migration:
- Monitor performance shifts closely
- Run controlled experiments
- Adjust settings like:
- URL expansion
- Text customisation
- Brand constraints
Risks and Considerations
Loss of Granular Control
AI-driven systems may:
- Reduce manual bid adjustments
- Limit keyword-level precision
Black Box Concerns
Advertisers may find it harder to:
- Understand decision logic
- Attribute performance changes
Learning Curve
Teams must adapt to:
- New workflows
- AI-driven optimisation strategies
- Reduced reliance on traditional structures
The Bigger Picture: A Strategic Shift
This move signals a broader transformation in digital advertising:
From Manual to Machine-Led
- Campaign setup becomes less hands-on
- Optimisation shifts to algorithmic systems
From Keywords to Intent
- Focus moves beyond exact queries
- Emphasis on user behaviour and context
From Static to Adaptive Campaigns
- Ads evolve in real time
- Creative and targeting become fluid
Bottom Line
Google is making AI Max the default future of Search advertising. The retirement of DSA isn’t just about removing an old feature. It’s about redefining how campaigns operate in an AI-first ecosystem.
Advertisers who act early will gain:
- Greater control during transition
- More time to experiment
- A competitive edge in performance optimisation
Those who wait risk being passively transitioned into a system they haven’t fully prepared for.
In this new landscape, success will depend less on how well you manage keywords and more on how effectively you guide and collaborate with AI.
Need a fresh perspective? Let’s talk.
At 360 OM, we specialise in helping businesses take their marketing efforts to the next level. Our team stays on top of industry trends, uses data-informed decisions to maximise your ROI, and provides full transparency through comprehensive reports.
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