Instead of entering a short phrase such as “dentist in Wellington” and working through a list of websites, consumers can now ask AI tools detailed questions describing exactly what they need. The AI may then narrow the options and recommend only a few businesses.
This emerging approach is increasingly being referred to as Answer Engine Optimisation, or AEO. As such, businesses need to make it easy for AI systems to understand what they offer and why customers should choose them. For SMEs, this means having accurate and consistent information across their entire digital presence.
Research cited by Thryv highlights a gap between how businesses view their online presence and how consumers see it. While 75 per cent of New Zealand SMEs surveyed believed they had a strong digital profile, only 52 per cent of consumers agreed. At the same time, 56 per cent of SMEs were already using AI or AI-enabled software.
Reviews may also become increasingly important. Beyond simply influencing human customers, detailed reviews can provide AI systems with evidence about a business’s reliability and customer service.
What This Means for SMEs
Businesses that provide clear, consistent and useful information may be able to compete effectively against larger companies. A specialist business can potentially stand out when its expertise closely matches a customer’s specific requirements.
Potential Tax, Record-Keeping or Compliance Considerations
Businesses should retain invoices and records for online assets, subscriptions and marketing. Appropriate records and policies may also be worth considering where employees or contractors use AI tools.
Practical Actions Readers May Wish to Discuss with Their Accountant
Owners should discuss their marketing budget and record-keeping with their accountant. It may also be worthwhile reviewing which online services generate enquiries and sales.
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Disclaimer:The information in this article is general in nature and does not constitute financial, investment, taxation, legal or accounting advice. Readers should obtain professional advice relevant to their individual circumstances before acting on any information contained in this publication.
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