The current state of AI search
Right now, AI search is in a transition period. Millions of people are using ChatGPT, Perplexity, and Google AI Overviews to find local businesses — but almost no local businesses have optimized for it.
In our research across healthcare verticals, less than 2% of practices had the basic structural elements AI needs to recommend them. That means in most markets, the competition for AI recommendations is nearly zero.
This won't last.
Why first movers win in AI search
AI recommendations tend to be self-reinforcing. Once AI starts recommending your business, several things happen:
- —AI platforms learn from their own recommendations. If users engage positively with the businesses AI suggests, the AI reinforces those recommendations.
- —More content gets created about your business. Being recommended generates reviews, mentions, and citations that further strengthen your position.
- —Competitors have to overcome your head start. Displacing a business that AI already recommends requires not just matching their optimization — it requires exceeding it.
This creates what we call "recommendation momentum." The businesses that establish themselves first in AI search build a compounding advantage.
Why the window is closing
Three factors are shrinking the first-mover window:
Awareness is spreading. AEO is entering mainstream marketing conversations. Every month, more agencies and consultants learn about it. The blue ocean is getting crowded.
AI platforms are maturing. Early AI search was less sophisticated. As these platforms improve their recommendation algorithms, the bar for getting recommended will rise.
Market exclusivity narrows. In many markets, there are only 3-5 recommendation slots. Once those slots are filled by optimized businesses, breaking in becomes significantly harder.
What this means for your business
If you're considering AEO, the economics are simple: acting now costs less and produces more than acting later. The businesses that optimize for AI search in 2026 will have an advantage that becomes increasingly expensive for competitors to overcome.
This isn't fear-based marketing — it's market dynamics. The same pattern played out with SEO in the early 2000s, with social media in the 2010s, and with Google Ads at every stage. Early adopters build advantages that late adopters struggle to match.
If you want to see where you stand today, start with a free AI visibility check. It takes 30 seconds and shows you exactly what needs to change.
Frequently Asked Questions
Is it too late to start AEO?
No — for most markets, the window is still wide open. Less than 2% of local businesses have optimized for AI search. But "not too late" doesn't mean "no urgency." The advantage of starting now is real and measurable.
How much of an advantage do first movers really get?
In markets where no business has optimized for AI, the first business to do so often captures the majority of AI recommendations in their vertical. Once established, maintaining that position takes less effort than building it.
What if my competitor starts AEO before me?
It's not winner-take-all. AI recommends multiple businesses per query. But the first few businesses to optimize in each market do get the strongest positions, and displacing them later requires more effort and investment.
Want to see how AI search sees your business?
Get a free AI visibility audit and find out where you stand.