While many claim "SEO is dead," the founder of the AI-native tool UX Pilot attributes a significant portion of their growth to their first million in ARR to SEO. Targeting high-intent keywords around UX, design, and AI generation proved to be a powerful and consistent acquisition channel.
Following SEO, App Store Optimization, and social virality, the next major distribution channel is AI answer engines. Product teams must now strategize how to get their brand, features, and knowledge base indexed and surfaced in AI responses, making AEO a critical growth lever for the modern era.
Users originating from an AI source like ChatGPT convert at a 26% higher rate. While the traffic volume is lower than traditional SEO, the intent is much higher because users have already refined their needs through conversation. This makes integrating with AI platforms a highly effective user acquisition channel.
AI search is the new overpowered marketing channel, with traffic converting up to 17x higher than Google. To get featured, invest heavily in comprehensive "alternatives to [competitor]" and "[your product] vs [competitor]" pages, as these are the bottom-funnel queries AI models cite most often.
Traditional SEO often involves technical debates (e.g., subdomains vs. folders) and link building. In contrast, optimizing for AI search (AIO) is about teaching the LLM about your product's value, features, and benefits, much like training a salesperson. It requires strong product marketing skills over technical SEO expertise.
Despite the rise of AI, Google still handles over 94% of searches. However, marketers must focus on LLM visibility, as customers sourced from AI search engines convert at a 4.4 times higher rate. This makes it a critical, complementary channel, not a replacement for traditional SEO.
Visitors arriving from AI-powered search tools like ChatGPT are highly qualified, having used detailed prompts to find a specific solution. This pre-qualification leads to significantly higher engagement and conversion rates—reportedly 7-8x higher than typical ads or organic search—making AI optimization a high-leverage activity.
Despite hype around AI killing SEO, data shows traditional search still accounts for the vast majority of web traffic. Marketers should view AI search as a channel diversification opportunity, not a complete paradigm shift, as Google is actively defending its dominance.
With 80-90% of AI-powered searches resulting in no clicks, traditional SEO is dying. The new key metric is "share of voice"—how often your brand is cited in AI-generated answers. This requires a fundamental strategy shift to Answer Engine Optimization (AEO), focusing on becoming an authoritative source for LLMs rather than just driving website traffic.
By posting a job for a "virtual receptionist," Donald Spann's company, Vicky Virtual, was featured on high-traffic blogs. Google's algorithm then associated his brand name with the search term. This accidental SEO drove a flood of qualified customer leads, not just job applicants, becoming a key growth engine.
While still a necessary channel, depending on SEO for the vast majority of new customers is increasingly risky. The channel has become extremely crowded, partly due to AI-generated content. Founders must diversify their acquisition channels to build a more resilient business.