AI Search Disrupts Traditional SEO Strategies

Editor’s note: This is AI Impact, Newsweek’s weekly newsletter where business leaders are exploring the real value unlocked by artificial intelligence.

Signal Capture

Signals from the frontlines of AI adoption

AI Search Is Breaking the SEO Playbook
By Adam Mills

For years, professional services firms focused on improving their Google rankings. Now, AI search is shifting the focus to factors harder to influence. Scribewise, a marketing firm specializing in thought leadership and generative engine optimization, surveyed 205 professional services marketers. The “GEO Readiness Report” noted that 95% found it crucial for their content to appear in AI search.

John Miller, founder of Scribewise, explained the risk: missing out on prospects because they remain unaware of potential buyers. Miller warns, “IT firms will now be discovered through AI search, and those adapting to it will outpace others. Those that don’t, risk losing business without even realizing it.”

He observed that AI search differs in approach. “Traditional search is a single query; AI search involves multiple questions, making it conversational,” Miller stated. This change impacts how buyers seek advisors, lawyers, or technology partners without visiting specific company websites.

According to Scribewise, AI searches are already generating business. A significant 97% of respondents captured leads through AI platforms like ChatGPT and Perplexity, with 67% obtaining multiple leads.

Miller sees significant shifts in client discovery, emphasizing the importance of adapting to AI search. “Traditional search results are becoming outdated,” he added, noting that previous SEO success indicators could mislead firms.

While 45% of marketers find AI search optimization more challenging, 39% worry traditional metrics will lose relevance. Miller described SEO and GEO with an analogy: “If SEO is a spark plug, GEO is the car.”

Scribewise revealed 67% of firms plan to refine website content for GEO, while 58% want more public relations outreach, and 63% are revamping social media strategies. Third-party references grow in importance for visibility.

AI search changes traditional dominance perceptions. Miller noted, “You can’t own the entire internet as you could a search engine’s first page.” Instead, firms should consider if they appear when their ideal client seeks AI assistance.

Core Intelligence

Why IT Services Feels Like It’s in a Recession
By Adam Mills

While enterprise technology budgets rise, this growth isn’t reaching all IT services areas evenly. More funds are diverted to infrastructure and AI systems. Legacy services need to compete with new fields as priorities shift.

Noshir Kaka, senior partner at McKinsey & Company, stated, “If you’re not advancing, you’re stagnant.” During Newsweek’s “AI Impact Forum,” he highlighted AI’s role in changing technology economics.

McKinsey research showed 72% of 690 executives surveyed are increasing budgets by 6-8%. But new AI investments affect budget allocation, diverting funds from established services.

Business units pushing for AI allocations may pressure CIOs to economize on older service contracts. This reshuffling leaves parts of the industry feeling pressured.

Clients expect innovative use of AI to transform business processes. Kaka illustrated using AI in pharmaceutical manufacturing to prevent defects rather than report them after occurrence. Clients seek measurable benefits and partners who can adapt spending effectively.

AI democratizes market accessibility as service firms update old systems, and software companies delve deeper into services. Changing demands require strategic adaptation for success, and investors are assessing firms’ future market approaches.

Kaka emphasized the need for evolution: “If current proposals mirror those made 18 months ago, reevaluation is essential.” Successful firms will preemptively revise strategies before clients force changes.

To watch the interview, refer to McKinsey’s Noshir Kaka: In AI, Standing Still Means You’re Dead.

Upcoming Webinars

AI in Finance: From Individual Adoption to Enterprise Transformation

Financial firms face a challenge beyond increased productivity through AI. The real test lies in leveraging gains for cost efficiency or competitive advantage.

In an “AI Impact Forum” session, Dr. Ranjit Tinaikar converses with Kevin Buehler, Rogo’s chief innovation officer, on AI’s potential to reshape financial services.

Join live on Thursday, June 18, at 9:30 a.m. Eastern. Register for free now.

Prompt Injection

What’s one recent insight you’ve learned about AI?

“Developing efficiency through AI usage has become second nature. Whether drafting or strategizing, my AI agent is crucial to my workflow.” – Atul Sabharwal, Snipp CEO

Share your AI learnings at: [email protected]

Run Log

AI use case of the week

A fluent AI agent may still lack contextual company knowledge. Slite’s CEO, Christophe Pasquier, recognized these gaps in daily operations. Teams manually input context or rely on incomplete connectors, missing details.

Slite’s Super MCP improves context retrieval, searching across chat, documents, code, and databases. This system boosts performance by 80% and speeds up response times without altering the AI model itself.

Pasquier explained, “Teams constantly re-brief AI, which highlights the need for proper context integration.” Slite aims for comprehensive work support through improved context handling.

Discuss your AI use cases: [email protected]

Context Window

• Hoover Institution urges AI arms control between U.S. and China, viewing unregulated AI competition as a security risk.
• House lawmakers are crafting bipartisan AI legislation for model developers, promoting transparency and external audits.
• The tech sector has cut over 123,000 jobs in 2023 due to AI-induced restructuring, impacting major companies like Meta and Cisco.
• Upcoming AI IPOs will test viability as major players like OpenAI compete for enterprise clientele.
• Google’s Gemma 4 12B enhances coding and data workflows on local devices, keeping data secure.
• 74% of workers incorporate AI, but the need for operating model adjustments remains clear to optimize value.

Transfer Protocol

Bartley Richardson joins CrowdStrike as chief AI and autonomous systems officer, previously serving at NVIDIA.

Graham Sheldon is the new chief product officer at Docusign, having worked at UiPath and Microsoft.

Retired Vice Admiral Bob Sharp joins Windward, focusing on maritime intelligence strategy.

Stefan Knighton, formerly of Kyndryl, takes a leadership role at Karman Space & Defense.

Kader Sakkaria is appointed as chief AI officer at Illinois Department of Innovation & Technology.

Hayley McKelvey now leads Deloitte UK’s AI strategy firmwide.

Send updates to [email protected]

Magic Moment

How have you recently used AI in unexpected ways?

Use AI to teach literacy to students and adults through engaging exercises, or create a versatile AI sous chef for culinary tasks. AI applications extend beyond traditional work, sparking creativity and innovation.

Share your experiences at [email protected]

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