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Just when you thought you’d wrapped your head around Google’s AI Overviews, there’s a new player in town.
Google has unveiled yet another AI search engine — AI Mode — and it’s poised to reshape the digital marketing landscape once again.
While still in testing mode and currently limited to US users of Google’s paid AI plan, this development signals a significant shift in how search might work in the near future.
As marketing leaders navigating an increasingly AI-driven world, understanding these changes isn’t just about staying informed — it’s about maintaining your competitive edge.
This podcast breaks down Google’s AI Mode, how it compares to existing tools like Perplexity, and, most importantly, what it means for your digital marketing strategy moving forward.
Executive Summary
Google AI Mode represents Google’s latest attempt to compete with AI-powered search tools like Perplexity. Key insights include:
- AI Mode uses a “query fan-out” technique to break down user queries into multiple background searches, then synthesises answers from various sources.
- The interface shows general information with linked sources that corroborate specific statements.
- Results appear more quickly than some competitors but currently lack direct commercial functionality.
- High-ranking, authoritative third-party websites are the primary sources for AI Mode’s answers.
- Success in this new search paradigm requires both traditional SEO excellence and strategic placement in the publications that AI engines reference
- The launch suggests Google is seeing significant traffic migration to AI search tools, making Generative Engine Optimisation increasingly critical.
“Anytime there’s a big change like this, there will be winners and there will be losers. And it’s up to us to be the fast movers who stand to gain from these changes.”
Founder
Understanding Google AI Mode
Google’s AI Mode represents a familiar yet distinctly Google approach to AI-powered search.
If you’ve used Perplexity, you’ll notice immediate similarities in the interface and functionality. Users receive an AI-generated answer with source links, although Google’s implementation has some unique characteristics.
The most immediately noticeable difference is speed — AI Mode delivers results significantly faster than tools like Perplexity’s Pro mode, which often takes longer to contemplate its responses. This speed advantage could be crucial for user adoption as AI search becomes more mainstream.
The interface presents information with general reference links at the top, similar to Google’s AI Overviews. Throughout the answer, you’ll find link icons that, when clicked, reveal the specific sources corroborating that particular statement. While this approach provides source transparency, it currently seems less comprehensive than Perplexity’s method of showing the individual background searches and websites it references.
You can see an example of the Perplexity search engine and shopping experience in action in this podcast recording:
AI Mode vs. Perplexity: A Critical Comparison
When comparing Google AI Mode with Perplexity, several distinctions emerge:
- Processing Speed: AI Mode delivers answers noticeably faster than Perplexity
- Transparency: Perplexity provides more visibility into its research process, showing users the actual background searches it performs
- Detail Level: Early testing suggests Perplexity’s answers tend to be more detailed and nuanced
- Citation Clarity: Perplexity appears more explicit about citing its sources
- Data Access: AI Mode theoretically has access to Google’s Knowledge Graph and Shopping Graph, potentially enabling more comprehensive answers with access to billions of products and entities.
These differences highlight the evolving nature of AI search tools, with each platform offering distinct advantages. Despite being in early testing, Google’s approach suggests they’re prioritising speed and integration with their existing search infrastructure.
The Commercial Search Experience
One area where AI Mode shows room for improvement is in commercial search queries.
When testing product recommendation queries like “What’s the best iPad Air case to buy?” AI Mode responds with recommendations based on high-ranking articles rather than leveraging Google’s extensive Shopping Graph data.
The current implementation feels somewhat disconnected from the purchasing journey. The system recommends products but doesn’t provide direct links to purchase them, forcing users to conduct follow-up searches to complete a transaction.
This approach seems counterintuitive given Google’s robust product data, suggesting that shopping ad inventory might be integrated in future iterations.
Most notably, the sources AI Mode references for product recommendations mirror those used by Perplexity and similar tools — primarily high-ranking, high-authority third-party websites rather than manufacturer sites. This pattern reinforces the growing importance of securing mentions and recommendations in authoritative publications like ZDNet and Wired.
How AI Mode Actually Works
While Google doesn’t offer complete transparency into AI Mode’s functioning, its published documentation provides some insights.
AI Mode employs what Google calls a “query fan-out” technique, similar to Perplexity’s approach:
1. The system takes the initial user query
2. It breaks down that query into multiple sub-queries
3. These sub-queries run as background searches
4. The system aggregates information from these search results
5. An AI-generated answer is compiled from these findings.
Interestingly, Google’s language around this process reveals a careful positioning.
Rather than explicitly acknowledging these websites as “sources,” Google describes them as “corroborating website results” or sites “associated with the response.“
This semantic distinction likely aims to deflect concerns about traffic cannibalisation from publishers, though that remains a legitimate concern for content creators.
The New SEO Playbook: Generative Engine Optimisation
Google’s launch of AI Mode signals that the company is feeling competitive pressure from tools like Perplexity. This suggests a significant number of users are already migrating to AI search platforms, accelerating the need for a new approach to SEO — what many call Generative Engine Optimisation (GEO) or Answer Engine Optimisation (AEO).
Success in this new environment requires a two-pronged strategy:
1. Traditional SEO Excellence
Continue investing in traditional SEO practices to ensure your content ranks well in the underlying web searches that AI Mode’s “query fan-out” technique utilises. If you’re not visible in these background searches, you won’t appear in AI-generated answers.
2. Strategic Third-Party Placements
Secure mentions, recommendations, and features in the authoritative third-party publications that AI search engines frequently reference. These high-authority sites effectively become the new kingmakers in AI search results.
This dual approach represents not just an evolution but a significant expansion of the digital marketing toolkit. Marketing leaders must now consider how their brand appears in direct search results and in the ecosystem of publications that inform AI recommendations.
“This is a really exciting time, and it’s great to see more innovation happening in search.”
Founder
Next Steps
As AI search continues to reshape the digital landscape, marketing leaders should:
1. Audit your current visibility in AI search tools like Perplexity and now Google AI Mode
2. Analyse the publications being referenced for queries relevant to your business
3. Develop a strategic outreach plan to secure mentions in these authoritative sources
4. Maintain excellence in traditional SEO to ensure visibility in underlying searches
5. Monitor AI search patterns as these tools evolve and adjust your strategy accordingly
The early adopters who understand and adapt to these changes will gain significant advantages as AI search becomes increasingly mainstream.
Resources Mentioned
- Expanding AI Overviews and Introducing AI Mode — Google’s AI Mode announcement
- Perplexity — A similar AI search engine that provides detailed, sourced answers
In Conclusion
Google’s introduction of AI Mode represents another significant shift in the search landscape, one that accelerates the importance of Generative Engine Optimisation alongside traditional SEO. These changes create both challenges and opportunities for forward-thinking marketing leaders.
The businesses that will thrive in this new environment won’t be those with the largest budgets, but those with the greatest adaptability. By understanding how these AI tools work and adjusting your digital marketing strategy accordingly, you can position your business to be recommended consistently while your competitors remain unaware of these fundamental changes.
This is indeed an exciting time of innovation in search, and as with any major technological shift, there will be winners and losers. The question for your organisation isn’t whether these changes will impact your digital marketing strategy, but how quickly you’ll adapt to ensure you’re among the winners.
Watch This Next
Watch this podcast featuring our CEO, Charlie Marchant, to learn why Generative Engine Optimisation will be a crucial marketing tactic for you and how you can create a successful strategy for capitalising on it.
