AI Impact on Business and Professional Services

Editor’s Note: This is AI Impact, Newsweek’s weekly newsletter where each week, we explore how business leaders are unlocking real value through artificial intelligence.

AI Search and SEO

Professional services firms have long focused on Google rankings, but the rise of AI search has changed the landscape. AI search requires visibility that is more elusive. According to Scribewise, a firm specializing in marketing and generative engine optimization, 95% of surveyed U.S.-based professional services marketers and leaders now consider AI search visibility critical for their content.

John Miller, founder and president of Scribewise, warns that firms risk losing prospects without ever knowing buyers were searching. The future of finding IT firms lies in mastering AI search.

Traditional search is transactional, whereas AI search is conversational, involving multiple queries to solve problems. This shift is significant in fields where buyers need to select advisers or agencies before engaging with their websites.

Scribewise’s survey indicates AI-driven searches are already generating business opportunities. Ninety-seven percent of respondents reported capturing leads through tools like ChatGPT, and 67% said they captured several.

Changes in SEO Strategies

AI search signifies a change in client discovery. Google-era habits don’t translate well to AI searches. Traditional SEO indicators may be misleading, leading firms to feel secure despite being invisible in AI search.

Forty-five percent of marketers surveyed by Scribewise express concerns that AI-first search optimization is more complex. Traditional success metrics may no longer apply.

Miller compares SEO to a spark plug, essential but not the whole mechanism, whereas GEO encapsulates the broader strategy.

The focus for firms is shifting to optimizing website content for GEO strategies and enhancing their public relations and social media presence. Third-party references become pivotal in firm appearances in AI searches.

Traditionally, firms aimed to dominate search rankings. Now, visibility in AI search is more about presence when ideal clients need solutions.

AI’s Economic Impact on IT Services

Enterprise technology budgets are growing, but unevenly across the IT services market. Much of the budget expansion focuses on infrastructure and AI systems, pressuring legacy services.

Noshir Kaka, senior partner at McKinsey & Company, notes standing still in the AI services economy is ineffective.

McKinsey’s research indicates 72% of surveyed executives increased their technology budgets. However, legacy services struggle against newer categories prioritized by CIOs.

This redirection entails challenging older services contracts or demanding productivity improvements. Despite increased spending, IT services feel like they’re in a recession.

AI shifts customer expectations regarding results, altering entire business processes rather than just tasks.

Kaka highlights pharmaceutical manufacturing, pointing out AI’s potential to predict and prevent defects in production batches.

Companies have to discern AI capabilities required by clients, ensuring investment translates into measurable outcomes.

AI enables companies to penetrate each other’s markets by updating older systems and expanding product offerings in diverse domains like consulting and legal services.

Innovation and Transformation in AI

AI’s transformative power displaces traditional playbooks and encourages enterprises to be proactive rather than reactive.

Companies leveraging AI must differentiate proposals from prior offerings to remain competitive.

Innovation echoes a 15-trillion-dollar market where firms vie aggressively.

The firms poised to succeed are those adapting their strategies rapidly in response to changing AI-driven demands.

Upcoming Webinar

Join Newsweek’s upcoming “AI Impact Forum” session to explore AI adoption in finance. Dr. Ranjit Tinaikar will host Kevin Buehler, discussing how agentic AI could transform financial services.

Register to join the live discussion on Thursday, June 18, 9:30 a.m. Eastern.

Executive Moves in AI

Several notable appointments are occurring across the AI landscape as companies adapt their strategies and positions. Leaders with AI expertise are filling crucial roles across diverse fields.

From CrowdStrike appointing Bartley Richardson to lead AI strategies, to Graham Sheldon leading product innovation at Docusign, these exec moves indicate the shifting focus towards AI in driving business transformations.