Atlas Digital has warned that Australian businesses have less than two years to influence how artificial intelligence systems represent them, as AI approaches Google's role as a source of new customer referrals.
Its analysis found that half of Australians have used generative AI and that AI referral traffic to Australian websites has risen by more than 1,200 per cent year on year. The findings point to a shift in how customers discover products and services, with tools such as ChatGPT, Google's AI answers, Gemini and Perplexity increasingly shaping early impressions before a person visits a company website or shop.
Atlas Digital, which works with software and technology companies, said many organisations remain focused on internal AI use while paying less attention to how external AI systems describe them to potential customers. It argued this gap is becoming more important as AI tools shift from research aids to direct sources of recommendations.
More than a third of consumers now use AI tools for product discovery, according to the analysis. In business-to-business buying, between 73 and 89 per cent of buyers use AI in purchasing research, while a G2 survey of more than 1,000 business software buyers found 69 per cent ultimately selected a different vendor based on information from an AI tool.
Audits across software-as-a-service, technology and financial services companies suggested many brands had little visibility into how they appeared across AI systems. Atlas Digital found 72 per cent of brands it reviewed contained at least one factual error in AI-generated responses, and 70 per cent did not appear in AI recommendations for their own category despite strong Google rankings.
In one audit, a technology company achieved only 44 per cent accuracy in ChatGPT's description of its market positioning. The finding highlights a broader concern for companies that have spent years improving their search rankings, only to find AI tools drawing on a wider and less controllable mix of sources.
Beyond search
Traditional search engines usually provide a list of links, allowing users to compare sources and giving businesses several opportunities to be seen. By contrast, AI systems increasingly provide a single summary or recommendation, reducing the number of touchpoints where a brand can shape a first impression.
That change also alters which information sources matter. Alongside company websites and search rankings, AI systems assess reviews, directory listings, news coverage and other third-party material when forming a response. In practice, outdated profiles or conflicting details can shape an answer even if a company's own site is accurate.
Alla Lvovich, an AI Search Specialist at Atlas Digital, said the issue is already affecting commercial decision-making. "By the time customers reach a company's website, AI has already shaped their shortlist. If you're absent from that list, or AI is relying on inaccurate information, you can be ruled out before any human conversation begins."
She said businesses need to think more broadly about how they are presented across the web. "AI doesn't rely on a single website to understand a business.
"It pieces together information from multiple sources, so outdated profiles, inconsistent information or weak third-party coverage can all influence how a company is represented. Businesses need to think beyond their own website and consider whether AI is seeing an accurate picture of who they are."
Legal risks
The implications go beyond marketing and customer acquisition. Atlas Digital pointed to recent disputes involving incorrect AI-generated information, including a case in which Air Canada was held liable after its chatbot gave inaccurate advice on fare policies.
It also cited a claim brought by US solar company Wolf River Electric, which is seeking more than USD $110 million in damages after Google's AI Overview allegedly generated false information linking the business to legal proceedings. Those cases suggest errors produced by AI systems can create legal and reputational exposure as well as lost sales opportunities.
Lvovich said that makes accuracy a business issue rather than a technical one. "When AI becomes a source of business advice and recommendation, accuracy matters.
"What we're seeing now is that many organisations aren't actively managing how they're being represented, despite AI increasingly influencing customer decisions."
Narrowing window
Atlas Digital's warning reflects a broader transition in online discovery, where companies now face a parallel challenge to search engine optimisation. Instead of competing only for placement on a results page, businesses are also competing to be the brand an AI system mentions when a user asks for a category recommendation or summary.
Ryan McMillan, Founder and Chief Executive Officer of Atlas Digital, said companies that move first will have an advantage as AI becomes more common in discovery and buying journeys. "For the past two decades, companies have competed for visibility in Google. The next challenge is understanding how AI platforms interpret, recommend and surface brands.
"The businesses that establish their AI presence now will be far better positioned as AI-driven discovery becomes mainstream. Those that wait risk letting AI define their brand before they do."