The Real Impact of AI on SEO: Your Ultimate Guide to AI-Powered Search Rankings
Search is changing, and fast. With the rise of AI Overviews (AIOs), generative search results, and machine learning-driven ranking systems, SEO has become more than keywords and backlinks. You now have to consider context, credibility, clarity, and a whole host of other factors to stay more than just visible, but also boost rankings.
Think you can’t outrank AI? We’re proving otherwise, and here’s how.
As an omnichannel and digital strategy agency, we’re not just watching the AI shake-up that digital marketers are facing with search algorithms. We’re adapting our digital marketing strategies, testing, and evolving right alongside it.
In this post, we peel back the curtain on leveraging AI to show you exactly how we’re turning disruption into opportunity. Plus, get a free downloadable checklist on how to optimize for generative search engines & AIOs!
What is Generative Engine Optimization (GEO)?
Oh, Just The Future of SEO
Generative Engine Optimization (GEO) is the practice of crafting content and site architecture in ways that increase the likelihood of inclusion in AI-generated responses in search engine results, whether that’s Google’s AI Overviews (AIO), Bing Copilot, or tools like ChatGPT with browsing.
This approach is a whole new ballgame for search engine optimization and traditional search results. Think of it this way: instead of focusing on keywords to stuff into a post, this is about becoming the authoritative source AI pulls from when it composes a summary, providing relevant content.
If traditional SEO asks: “How do I rank #1 on the SERP?”
Then GEO asks: “How do I become the trusted source that AI references when it builds its answers?”
For example, let’s say someone asks, “What’s the best way to improve local SEO for a multi-location business?” Google’s AIO might summarize key steps, pulling from various high-authority sites. If your content creation lays out those steps, uses schema, and demonstrates authority in local SEO, you’ve got a great shot for it to become part of that summary.
You may not get the click on the search engine results page. But you get the mention. And that kind of visibility, dear neighbors, is influence.
How Are AI Overviews Changing SEO?
AI Overviews are Google’s new generative search summaries. They’re the most significant transformation for search results since mobile took over from desktop. They appear “above the fold” (i.e., at the top of the search lists), providing users with a synthesized answer pulled from multiple sources using AI algorithms, without requiring a click.
As of June 2025, between 10% and 15% of Google searches are triggering an AI Overview, according to recent reports from Ahrefs, SEMrush, and Conductor. These search trend numbers vary by sample size and time frame, but this is a considerable percentage.
AIOs are Fueling Fewer User Clicks & More Complexity
AI Overviews are not just another search feature in current SEO practices; they’re fundamentally changing user behavior within traditional search engines. Ahrefs’ analysis of 590 million keywords reveals that AI Overviews are decreasing organic click-through rates (CTR), particularly for top-of-funnel searches.
Currently, they primarily appear in informational queries. But we want to point out that SEO is growing beyond just search engine rankings to encompass many evolving forms. Nothing is really stopping Google from rolling AIOs into more commercial or local AI-powered search queries in the future.
Everything We Know About AI and SEO (So Far)
Let’s break down what’s been consistently reported to date:
- AI Overviews Lower Organic CTR – When users get their answers at the top, they often don’t scroll or click. Fewer clicks mean even top-ranked content can get buried in engagement metrics.
- Informational Queries Trigger AIOs the Most – Think long-tail keywords married with: “how to,” “what is,” “why does.” These queries are ideal for AIOs because they don’t typically carry purchase intent. (But that might change.)
- AIOs Rarely Appear for Local or Transactional Queries – Searches like “best pizza near me” or “buy tennis shoes” still return traditional results (for now). We think that as AI improves, that wall may come down.
- AIOs Are Personalized – Search history, location, preferences—all of it can impact what a user sees in their AI Overview. That means SEO is less about static positions and more about dynamic relevance.
- AI Is Reshaping Content Strategy Itself – Search engines now prioritize precision over volume. Smarter queries demand more conversational, answer-first content. To earn visibility in AI Overviews, content must be tight, structured, and demonstrate contextual authority through semantic depth.
Digital Neighbor is now designing content with AI summaries in mind. That means tighter writing, cleaner structure, and a focus on what people—and machines—want to see.
How AI “Ranks” Content (Well, Sort Of)
The bad news: Optimization ≠ guarantees. Since you can’t technically rank #1 in an AI Overview, there’s no way to “optimize” your way into every AI Overview, and no checklist exists that guarantees inclusion. (At the moment, anyway. Our SEO team is, however, doing their best “Mr. Wizard” over here at Digital Neighbor to invent a framework with some guesstimates you can use. Read on.)
The good news: You can improve your chances of being referenced by doing relevant keyword research and understanding what AI systems look for.
In the realm of search engine optimization, AI favors authoritative, well-organized, up-to-date content that clearly answers specific user intent.
However, every user may see something slightly different. Our approach at Digital Neighbor is focused on strategic optimization, not blind volume.
The Hallucination Problem with AI-Powered Tools
You may have heard of Amazon’s mushroom foraging guide that encouraged the eating of an endangered plant species. Or when a Microsoft travel page listed a food bank as a tourist destination for anyone with an empty stomach.
AI invents information known as hallucination, and it’s a real risk. AI-generated summaries can:
- Misquote sources
- Cite outdated information
- Fabricate brand associations
- Make up URLs
That’s why it’s risky to trust AI-generated results blindly or to assume inclusion in an AIO is always good PR.
Human Oversight Still Matters in Content Creation
AI-Driven SEO Doesn’t Replace Human Judgment
Think of artificial intelligence like autopilot: helpful, but you still need a trained pilot.
At Digital Neighbor, our strategists use AI tools to enhance, not dictate, our work. We define the SEO “flight plan,” monitor performance, step in when AI falls short, and make logical, brand-aligned decisions. We structure pillar content, mark up data clearly, select relevant topics, and write with precision.
AI helps us drive organic traffic and scale by:
- Auditing content for gaps and quality
- Detecting high-potential keyword clusters
- Organizing topics into AI-friendly authority zones
- Drafting content with thoughtful prompts and briefs
- Structuring presentations with speed and clarity
But every output is reviewed by a human. Always. We balance short-term visibility with long-term trust—and never automate client work from end to end.
At Digital Neighbor, we’re here to help clients rank, earn references, and maybe even break the internet (in a good way).
Machine Learning SEO Algorithms Are Changing Search, Not Replacing It
AI technology is now baked into search engine algorithms. AI can rewrite meta descriptions, adjust search layouts, and summarize multiple sources instantly.
But all of this still depends on the quality of the content it pulls from. Bad content? Bad summary. No content? No presence. Bad prompt? You get the picture.
If you’re not creating rich, clear, helpful content with the help of AI-powered SEO tools, unfortunately, your search visibility is going to suffer, regardless of how smart the search engine is.
Be the Source AI Summarizes, Not Just a Search Result to Click
With AI Overviews revolutionizing click-throughs and machine learning rewriting how content is ranked, brands must create authoritative, structured, human-centered content that AI trusts and references.
Zero-Click Search: How to Win Without the Click
AI isn’t replacing SEO strategies. It’s reshaping them. While zero-click searches (like AI Overviews and featured snippets) may reduce traffic, they’re not failures. They’re opportunities to build trust, visibility, and authority without relying on the click from targeted traffic.
At Digital Neighbor, we see AI as a tool, not a threat. We:
- Stay ahead of search and AI trends
- Test tools before scaling them
- Educate clients, not just implement
- Use AI to accelerate, not automate, our thinking
We’re strategic, ethical, and, like Mr. Rogers, always human-first with kindness. With the right approach, Google’s search generative experience becomes your edge in online visibility.
Ready to Build Visibility in a Zero-Click World? Let’s Make Sure AI Finds & Features You
Get Your FREE How to Optimize for AI-Driven Search Checklist!
Get brand mentions, consistent positioning, and retargeting opportunities that build awareness, increase trust, and grow impressions even without a website traffic spike.
Download your FREE generative search engine checklist here!
Questions? Our neighborly team can help! Drop us a line right here.
