Update, October 2026
Google did not complete the switch in September 2026. In June it moved the automatic upgrade of Dynamic Search Ads to AI Max to February 2027 after advertisers asked for more time, and let advertisers create new DSA campaigns again until January 2027 (Search Engine Land). Google's Dynamic Search Ads help page now says DSA campaigns will be upgraded automatically starting in February 2027. Automatically created assets and the campaign-level broad match setting stayed on the original timetable, with automatic upgrades to AI Max from September 2026 (Search Engine Land). If you still run DSA, those campaigns keep serving for now, and the date to plan around is February 2027.
Google Is Retiring One of Its Most Popular Ad Formats
On April 15, 2026, Google announced it would upgrade Dynamic Search Ads (DSA) to AI Max for Search and released voluntary upgrade tools. That announcement set September 2026 for the automatic upgrade of any remaining DSA campaigns. Google has since moved that date to February 2027 (see the update above).
If you're running Google Ads right now, this directly affects you.
DSA has been a workhorse for Australian advertisers for years. It automatically matched search queries to your website content without requiring a full keyword list. For businesses with large product catalogues or service pages, it was one of the easiest ways to capture long-tail search traffic.
That era is ending.
What is AI Max for Search?
AI Max for Search is Google's suite of automated features for Search campaigns. It replaces DSA but goes significantly further.
Here's what AI Max does that DSA didn't:
- Keyword expansion: AI Max automatically broadens your keyword targeting beyond what you've set, using Google's AI to find related queries it believes will convert.
- Ad copy rewriting: It generates and tests new headline and description combinations using your existing assets and landing page content.
- Landing page selection: Instead of sending traffic to the page you specify, AI Max can redirect clicks to whichever page on your site it thinks will convert best.
Google calls these three features search term matching, text customization and final URL expansion, and its April 2026 announcement says campaigns upgraded from DSA get all three switched on by default. The same post says AI Max for Search campaigns see an average of 7% more conversions or conversion value at a similar CPA or ROAS when they use all three features, compared with search term matching alone.
But that's the headline number. The reality is more nuanced.
What Advertisers Are Actually Seeing
Since AI Max exited beta, the feedback from the advertising community has been split.
Some advertisers are reporting strong results, particularly those with:
- Clean, well-structured conversion tracking
- High-quality landing pages with clear calls to action
- Strong first-party data feeding the algorithm
- Sufficient budget for the AI to learn and optimise
Others are seeing problems. A Smarter Ecommerce analysis of more than 250 Search campaigns using AI Max, reported by Search Engine Journal, found a median 13% lift in conversion value and a median 16% rise in CPA. Where results go backwards, the most common causes are:
- Messy conversion tracking. AI Max optimises toward whatever conversion signal you give it. If your tracking counts page views or scroll events as conversions, the algorithm will happily optimise for those instead of real leads or sales.
- Thin landing pages. AI Max reads your site content to generate ads and select landing pages. If your site has weak content, outdated pages, or inconsistent messaging, the AI has poor raw material to work with.
- Insufficient budget. AI Max needs data to learn. Campaigns with small daily budgets often don't generate enough volume for the algorithm to optimise effectively.
- No audience exclusions. Without proper exclusion lists, AI Max can spend budget retargeting existing customers or reaching audiences that have already converted.
Why This Matters More Than a Typical Google Update
Google regularly updates its advertising platform. Most changes are incremental. This one is different for three reasons.
1. There's No Opt-Out
Previous Google Ads changes have typically offered alternatives. When Expanded Text Ads were retired, advertisers could still run Responsive Search Ads with manual control. With DSA, there's no alternative. AI Max is the only replacement. If you don't migrate voluntarily, Google does it for you, now from February 2027.
2. The AI Makes More Decisions Than You Do
DSA automated query matching but left ad copy and landing pages in your hands. AI Max automates all three. For advertisers used to controlling their messaging, this is a fundamental shift. Your ads may say things you didn't write, sending traffic to pages you didn't choose.
3. It Rewards Preparation and Punishes Neglect
AI Max performs well when it has strong inputs: clean data, quality content, clear conversion goals. It performs poorly when those inputs are weak. The gap between well-managed and poorly-managed accounts will widen as more campaigns move to AI Max.
What Australian Businesses Should Do Right Now
Whether you manage your own Google Ads or work with an agency, here's what we recommend doing this week.
Step 1: Audit Your DSA Campaigns
Log into Google Ads and check if you have any active DSA campaigns. If you do, note their current performance: cost per conversion, conversion rate, and which queries they're matching to. This is your baseline. You'll need it to measure whether AI Max improves or degrades performance after migration.
Step 2: Fix Your Conversion Tracking
This is the single most important preparation step. AI Max will optimise toward whatever conversion action you've set as primary. If your primary conversion is "page view" instead of "form submission" or "purchase," the algorithm will optimise for the wrong thing.
Check that:
- Your primary conversion action reflects a real business outcome (lead, sale, booking)
- Enhanced conversions are enabled for better signal quality
- You're not double-counting conversions from multiple tags
Step 3: Clean Up Your Website Content
AI Max reads your site to generate ad copy and select landing pages. Every page on your site is now potential ad creative material. Review your key service and product pages for:
- Clear, specific headlines that describe what you offer
- Accurate, up-to-date information
- Strong calls to action
- No broken pages, placeholder content, or outdated promotions
This is the same groundwork that SEO for small businesses depends on, so the work helps your organic rankings too.
Step 4: Build Your Audience Exclusion Lists
Upload your customer lists to Google Ads and set them as exclusions, not signals. This prevents AI Max from wasting your acquisition budget on people who have already converted. If you're running lead generation campaigns, exclude anyone who has already submitted a form or made an enquiry.
Step 5: Migrate on Your Terms
Don't wait for the February 2027 automatic upgrade. Use Google's voluntary upgrade tools to control how the transition happens. This lets you:
- Choose which campaigns to migrate first
- Set your own budget and bidding parameters
- Monitor performance in real time and make adjustments
- Configure the campaign yourself instead of accepting the default settings Google applies in an automatic upgrade
The Bigger Picture: Automation Keeps Accelerating
This DSA retirement is part of a clear pattern. Google is systematically removing manual controls and replacing them with AI-driven automation. We saw it with Smart Bidding replacing manual bids. We saw it with Performance Max replacing Smart Shopping and Local campaigns in 2022. Now we're seeing it with AI Max replacing DSA.
The direction is unmistakable: Google wants advertisers to provide the inputs (budget, creative assets, conversion goals, first-party data) and let the AI handle the execution.
For businesses, this means the value of having expert Google Ads management is actually increasing, not decreasing. The decisions that matter are shifting from "which keywords to bid on" to "how to structure your data, content, and conversion tracking so the AI works for you instead of against you."
The advertisers who treat AI as a tool that needs expert guidance will outperform those who hand over the keys and hope for the best. That gap is about to become very visible.
Need Help With the Migration?
Riseo provides Google Ads management for Australian businesses ranging from $3,000 to $50,000+ monthly spend. We've been preparing our clients for this transition since AI Max entered beta, and we've already migrated several accounts with strong results.
If you're unsure whether your account is ready for the DSA-to-AI Max transition, reach out for a free Google Ads audit. We'll review your conversion tracking, campaign structure, and website readiness before you make the switch.