Believe it or not, Google's "biggest change to search in 25 years" is not quite as big as the headlines made it out to be, at least not yet. Google closed out May with a whirlwind of announcements, everything from Gemini upgrades to Gmail features to e-commerce tools got a mention, all tied together by one theme: AI.
I sat through a lot of those announcements live as they happened, and most of it won't directly affect our industry. At Do You Convert, we don’t take Google’s word for it on anything, and since we manage more Google spend than anyone else, we also have the data. So, I analyzed our 100+ builder accounts, ran tests, and dug into how home shoppers are actually behaving right now, not how the headlines say they are behaving. Here is what I found, and how it compares to what Google said in their announcements.
The New Search Bar
I spent some time interacting with Google's redesigned AI Mode search bar, and it genuinely functions more like an LLM now if you want it to. You can upload images, switch models, type a full prompt, and get responses that look a lot like those from ChatGPT or Claude.
But here is the part I want you to sit with: AI Mode is not the current default! It only kicks in when someone deliberately clicks that specific button. If you type your search and hit enter, search from your phone, use Chrome's address bar, or click one of Google's autocomplete suggestions, you will skip AI Mode entirely. Mobile, on its own, makes up about 70% of all search traffic, and none of the mobile paths default to AI Mode. Rand Fishkin's own projection (again based on large real-world datasets) is for AI Mode to be around 10% of all searches over the next two years. That is meaningful, but it’s not a takeover.
AI overviews will continue to show at the top of many traditional search types (though generally not in home building terms yet), and they currently see 2.5x the amount of delivery as AI mode does - further backing up the idea that users don’t typically choose AI Mode implicitly.* Google has so far been reluctant to use AI overviews when high intent keywords are used in large and established ad categories like residential real estate.
Usage Is Up, Trust Is Not
People are using AI, but they are not necessarily trusting it. That’s a way bigger issue than it might sound like when you read it.
A Quinnipiac University study from March of this year found that 51% of adults use AI for research, but only 21% mostly or somewhat trust the results. Narrow that down to our industry specifically, and a Cotality report found that only 16% of prospective buyers trust AI tools enough to help them find a home, down from 30% the year before. That number is heading the wrong direction, not the right one - but it makes sense! A home is one of the biggest, if not the biggest, purchases someone will make in their life. Nobody is going to cut corners on that by relying on a source they only somewhat trust. They will use AI, but it is one stop on a much longer journey, not the whole trip.
Performance Max and AI Max: Google's Pitch vs. Real Data
Google is pushing Performance Max and AI Max hard right now because they are the only campaign types that currently serve ads inside AI Mode. Of course, Google wants everyone to hop on board and use it and raise their spending levels to do so.
We have run many of these campaigns across many markets, and the results tell a different story from what Google is pitching. In a study I completed on lead responsiveness, 78% of Performance Max leads became unresponsive after 30 days, but for traditional search, that number is only 5%. Performance Max may drive more leads at a lower cost per lead, sometimes 30-40% lower. But if you follow those leads all the way through appointments and sales, traditional search wins every single time.
My recommendation remains the same: get as specific as possible with high-intent keywords. Google wants you to go broad, but if you go narrow instead, you'll still outperform Performance Max, with a 53% higher conversion rate and three times the click-through rate!
Brad Page of Ogilvy recommends the same: “Defend core spaces in traditional paid and organic search while testing emerging spaces like paid AI search placements.”* This is why we’ve consistently recommended a 1-2% testing and experimentation budget, because stealing from traditional search ads to run in unproven spaces is currently costing many home building companies millions in lost sales revenue.
What Builders Should Know
Google's announcements make for a great headline, and I get the pressure to overhaul your strategy overnight because of them. But when you look at the data, it’s clear that AI is just becoming part of the home shopping process, not replacing it.
Google’s core advice hasn't changed, your content should be answering the questions buyers are asking throughout the home-shopping journey. What has changed is that your content needs to live beyond your site. Visibility now depends on showing up on YouTube, social media, local news outlets, and listing sites, too. Brand mentions are becoming the new backlinks, and they're far easier to earn. More content won't push you to the top; authentic content that shows real expertise is what wins. When asked where she would focus additional investment Crystal Carter, Head of AI Search & SEO Communications at Wix, didn’t hesitate: “YouTube. YouTube is incredibly efficient with regards to AI and SEO, consistently ranking highly and acting as one of the most cited sources across models.”* Ads on YouTube are fantastic ways to reach your audience, but don’t neglect the impact that creating focused and expertise-filled content organically can achieve!
On the paid side, traditional search ads are holding steady. Performance Max tells a different story: impressions are climbing, but click-through rates and conversions are falling, and those leads are often poor quality. The takeaway is that search works best when it captures existing demand, asking it to create demand burns budget without the return to match.
The bottom line is that Performance Max and AI Max aren't ready to carry the weight of home builder advertising yet, and forcing participation could produce spammy, low-quality leads. The smartest move right now is to invest in stronger first-party data and signals for Google. Builders who lay that groundwork today will be the ones ready to move when Google's AI campaigns finally mature. We'll be watching, and we'll let you know when that shift happens.
*from Semrush and Adobe, AI Visibility Index 2026: How Brands Win Visibility in AI Search
