Perils of AI-Powered Search – How Businesses Will Be Screwed



The rapid evolution of AI in search engines like Google is poised to reshape how information is accessed—but at what cost to businesses?

The search landscape is changing at an unprecedented pace, driven by artificial intelligence (AI). Major players like Google Anthrophic and Bing by Microsoft are integrating AI-powered summaries at the top of search results, fundamentally transforming how users interact with information online. But while this innovation promises enhanced user experiences, it also presents imminent challenges for businesses and creators struggling to maintain visibility in an increasingly crowded digital space. As AI-powered answers dominate search results, companies face an existential crisis between the need for visibility and the risk of becoming obsolete.

AI in Search Results

The deployment of AI in search engines marks a pivotal shift in how information is presented to users. Features like AI Overviews are now capturing the prime real estate at the top of Google’s search results, providing quick snippets of information that eliminate the need for users to click through to actual websites. Google’s near-monopoly in the search engine market, recently ruled illegal, further amplifies its control over this evolving landscape. With more than 90% of global search traffic going through Google, the company’s decisions have far-reaching implications for businesses of all sizes.

The introduction of generative AI models is fundamentally altering search engine operations. These models generate answers based on vast datasets, bypassing traditional links to external websites. This shift reduces the visibility of individual businesses and drastically changes user interaction with search results.

Existential Threat

Businesses now face a stark choice: allow AI algorithms to mine their content or risk fading into obscurity in search results. This predicament poses an existential threat, as being excluded from AI-generated summaries could mean losing significant portions of web traffic. Joe Ragazzo of Talking Points Memo highlights this crisis, emphasizing content creators’ difficulty in staying relevant. His perspective underscores the broader industry concern about the diminishing returns from traditional SEO strategies.

AI-powered answers are reducing click-through rates, directly impacting businesses that rely on high visibility for traffic and revenue. Fewer clicks mean fewer opportunities for engagement, sales, and advertising revenue, posing a severe threat to the financial stability of many online enterprises.

Consequences for Content Creators

Blocking the Googlebot to protect content from being harvested by AI comes with its own risks. Doing so can result in a significant loss of traffic, leading to decreased visibility and engagement. Google’s $60 million deal with Reddit illustrates the high stakes involved in content licensing. This arrangement sets a precedent that smaller AI and search startups may find difficult to replicate, exacerbating the challenges faced by content creators.

Publishers like us here at Geek News Central understand the risks of opting out of AI-driven search visibility. We are damned if we do and damned if we don’t. The dilemma is apparent—remain accessible to AI and risk content appropriation, block AI and lose crucial web traffic.

The Future of Search and Business Survival

AI is undeniably changing the nature of search. Businesses must adapt to this evolving landscape or risk obsolescence. The future of online visibility hinges on understanding and leveraging these changes. To survive and thrive in this new era, businesses must diversify their traffic sources. Building direct relationships with their audience through podcasting, email marketing, social media engagement, and other channels becomes increasingly crucial.

But gaining new customers, listeners, etc., in this environment is going to be very, very difficult. The broader consequences of AI-powered search will result in the entire business ecosystem’s potential collapse, relying too heavily on Google and others for visibility. There are no clear answers. My solution for Geek News Central at this point is to go wide and continue to create original content that hopefully the LLM will consider a valuable source. But it remains unclear if we will survive and my external business can.

Google will always say buy your traffic with SEM, but that is just paying the Devil at this point. In an era where AI redefines search and business visibility rules, we can only guess at this point how bad it’s going to be, but it’s stuff like this that keeps me up at night.

About Todd Cochrane

Todd Cochrane is the Founder of Geek News Central and host of the Geek News Central Podcast. He is a Podcast Hall of Fame Inductee and was one of the very first podcasters in 2004. He wrote the first book on podcasting, and did many of the early Podcast Advertising deals in the podcasting space. He does two other podcasts in addition to Geek News Central. The New Media Show and Podcast Legends.