Google has clarified that exact match keywords do not serve ads within AI Overviews, and they also no longer block broad match keywords from appearing in those placements. This update is especially relevant for advertisers using AI Max or testing mixed match types.

Previously, if the same keyword existed in both match types, exact match could suppress broad match in AI Overviews. That is no longer the case. Since only broad match or keywordless targeting is eligible to appear inside AI Overviews, exact match doesn’t compete in that auction.
It was also confirmed that an ad can appear either within AI Overviews or above/below it, but not both in the same auction.
This change reflects Google’s focus on AI-driven, intent-based targeting. Advertisers relying on AI Overviews should ensure broad match is enabled to maintain reach.
This update was clarified by Ginny Marvin, Google’s Ads Liaison.