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Nov. 5, 2025, 1:20 p.m.
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McKinsey Report: How AI-Powered Search is Transforming Marketing and SEO in 2025

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McKinsey’s October 2025 report highlights a major shift in consumer behavior driven by generative AI-powered search, transforming how people discover and buy products. By 2028, AI-driven search will influence $750 billion of U.S. consumer spending. Brands that don’t adapt may lose up to 50% of their traffic from traditional search engines. Currently, AI summaries appear in about half of Google searches, expected to exceed 75% by 2028. AI search relies heavily on third-party content like affiliate blogs, reviews, and forums rather than brand websites, causing many top brands to become invisible despite strong SEO. To succeed, marketers need to transition from traditional SEO to Generative Engine Optimization (GEO), which includes auditing AI visibility, ensuring presence on trusted third-party sources, optimizing content for language models, and forming cross-functional GEO teams. Embracing GEO is crucial for sustaining visibility and competitiveness in the AI-driven digital future.

That’s the key warning from McKinsey’s October 2025 report, which details how generative AI-powered search is rapidly transforming the ways people discover, research, and purchase products. The report projects that by 2028, AI-driven search will influence $750 billion in consumer spending in the US. Brands that don’t adapt risk losing up to 50% of their traffic coming from traditional search platforms. This article delves into what is changing, why it matters for marketers, and how to shift from SEO to GEO — generative engine optimization. Short on time? Here’s a table of contents for quick navigation: - What’s happening with AI search - Why SEO is losing influence - What marketers should do now What’s happening with AI search The AI search revolution isn’t theoretical; it’s already underway. McKinsey’s recent consumer survey finds that half of US users now deliberately use AI-powered search tools like ChatGPT, Perplexity, Google’s AI Overview, and Gemini to inform their purchasing decisions. Key figures include: - Around 50% of all Google searches now feature AI-generated summaries - This figure is expected to surpass 75% by 2028 - Even baby boomers actively use AI search for discovering products AI search has become the default method people use to research, compare, and refine their choices—often without clicking through to brand websites. Why SEO is losing influence Most brand websites contribute only about 5-10% of the sources that AI models use to generate answers. Instead, the majority of data feeding AI comes from third-party content — such as affiliate blogs, product reviews, retailer listings, forums, and community Q&A threads. This means your traditional organic search strategy may no longer appear in these AI-driven conversations. McKinsey highlights that in sectors like apparel, credit cards, and electronics, some leading brands are missing entirely from AI-generated summaries despite dominating traditional search results. The consequence?A disconnect between brand strength and visibility in AI search. For example, in one retail segment, McKinsey identified brands with a 60% lower share of voice in AI search compared to their actual market share. What marketers should do now McKinsey suggests four strategic steps for brands aiming to succeed in the AI-centric landscape: 1. Begin with a GEO diagnostic Less than 20% of brands currently monitor how they appear in AI-generated summaries. Conduct an audit of your performance on platforms like Google AI Overview, ChatGPT, and Perplexity. Track visibility, sentiment, and the sources large language models (LLMs) rely on. 2.

Ensure your content exists where LLMs trust To be featured in AI responses, your content must appear on platforms trusted by LLMs—affiliate sites, online forums, publisher blogs, and review sites. For instance, in financial services and consumer packaged goods, over 65% of AI-cited sources come from publishers and user-generated content. 3. Optimize content for LLM readability AI models favor clear structure, factual language, and fresh insights. Enhance your headlines, update data, and keep content thematically relevant. In this context, clarity and structure trump stylistic flair. 4. Integrate GEO into your marketing stack Establish a cross-functional team spanning marketing, SEO, and customer experience to manage GEO efforts. Define new KPIs focused on AI visibility and upgrade your technology stack to enable ongoing monitoring and optimization. AI-powered search is rewriting the rules of digital discovery. Ranking well on Google no longer guarantees your brand appears when it counts. If you aren’t included in AI-generated answers, you may miss out on crucial points in the consumer decision journey. This isn’t about abandoning SEO but evolving beyond it. Brands investing in GEO now will secure a competitive advantage, while those who don’t may lose ground without even noticing.


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