Try this right now. Open ChatGPT and ask it to recommend the best provider in your category - your industry, your kind of business, no location specified.
Watch what comes back. There's a fair chance the answer leans toward large global names, and quite possibly doesn't include a single Australian business - even though there are excellent ones, and even though some of them would suit an Australian buyer far better than the brands the AI just named.
That's not bad luck, and it's not a knock on the brands that did get named. It's a structural quirk of how these systems work. And if your buyers are researching in AI tools - which, increasingly, they are - it's quietly costing you visibility.
Here's why it happens, and the good news: it's more fixable than it looks.

Why AI Search Overlooks Local Brands
AI answer engines build their understanding from the content they're trained on - a very large slice of the public web. And the volume of content on that web isn't evenly distributed across the world.
Markets with larger English-language digital footprints - more published articles, more reviews, more company coverage, more general online discussion - are simply represented more heavily in the training data. The result is a tilt the models don't intend but can't avoid: brands and businesses with the biggest online presence are the ones the models "know" best, regardless of how good or relevant they are in any particular local market.
For Australian and New Zealand businesses, that tilt has a practical consequence. A business can lead its category locally - genuinely be the best choice for a local buyer - and still be quiet in an AI's answer, simply because its digital signals are smaller in volume than those of larger players elsewhere. The model isn't judging quality. It's reflecting visibility. And it can mistake one for the other.
None of this is about other companies doing something wrong. The brands that get named earned their online presence. It just means that for a local business, showing up in AI search takes a deliberate effort that a few years ago wasn't necessary.
Are Buyers Actually Using AI to Choose Suppliers?
It's a fair question, and the honest answer is: increasingly, yes - though the behaviour is new enough that hard numbers are still thin and worth treating with caution.
What's clear is the direction. AI assistants like ChatGPT, Perplexity, and Gemini have moved from novelty to daily tool for a lot of people, including in the research phase of business purchasing. The "let me look into a few options" step that used to start with a Google search increasingly starts with a question to an AI - and the AI's answer shapes the shortlist before a buyer visits anyone's website.
You can see this in your own behaviour. When you want a quick read on options in an unfamiliar category, do you open ten browser tabs, or do you ask an AI to summarise the landscape? More and more people are doing the second. Your buyers are no different.
So the question isn't whether AI search matters yet. It's whether you'd rather start showing up now, while most of your local competitors haven't thought about it, or later, once they have.

The Fix Isn't Magic. It's Signals.
Here's the genuinely good news. The reason AI overlooks a local brand is a lack of recognised signals — and signals can be built.
Modern answer engines don't rely only on what they learned in training. When you ask ChatGPT or Perplexity a current question, they often search the live web in real time and build an answer from what they find. That's the crack in the door. Even if the training data underrepresented you, you can earn your way into the answer by being visible, credible, and clearly relevant right now.
Here's how to build the signals that get a local brand recognised.
Make your location explicit and unmissable
If the models struggle to place you geographically, stop making them guess. Be direct about where you operate, who you serve, and the market you're an authority in. "Australia's," "for Australian businesses," and your actual city and region should appear naturally across your site - not stuffed, but present. You're handing the AI the geographic signal it otherwise has to infer.
There's real upside hiding here. Location-specific queries are the ones you can win most easily. Being named for a broad, global query is hard. Being named for best marketing automation partner in Australia is far more achievable - the field is smaller and the geographic signal works in your favour.
Answer the questions your local buyers actually ask
Generic global content competes with the entire internet. Content built around specifically local questions - Australian regulations, local pricing context, the AUD, EOFY, the Privacy Act, whatever's genuinely specific to operating here - competes in a much smaller field. That specificity is itself a signal of genuine local relevance, and it's content only local businesses are well placed to produce.
Build authority where the models actually look
The models build their picture of you from across the web, so the places your brand shows up all matter: local industry publications, credible directories, genuine coverage, the conversations on platforms like LinkedIn. You don't need an enormous footprint. You need a genuine and growing one in the corners of the web relevant to your market. Being authentically known in your category is now an input the models pay attention to.
Structure content so it can be extracted and cited
This is the universal AEO fundamental, and it matters double when you're working to be noticed. Answer questions directly and early in the page. Use clear, question-shaped headings. Add structured data. Keep your best content fresh, because the models favour recently updated material. The easier you make it for an answer engine to lift a clean, current, clearly-local answer from your content, the more likely it is to do exactly that.
Measure where you actually stand
You can't improve what you haven't measured. Run a free tool like HubSpot's AEO Grader to see how the major engines currently describe your brand - and run it against your local competitors, not the global giants. The local race is the one you can win, and the gap against local competitors is the one worth closing first.

The Window is Open Right Now
Here's the part worth sitting with. Most Australian businesses haven't worked this out yet. The ones in your category are, by and large, just as quiet in AI search as you are - because almost nobody local is deliberately building these signals.
That won't last. The same way SEO went from secret weapon to table stakes, AEO will too. The brands that start building geographic and authority signals now, while the local field is wide open, are the ones that'll own the AI answer in their category by the time everyone else catches on.
Getting overlooked in AI search is a default, not a destiny. The brands that show up are simply the ones that decided to.
So go ask ChatGPT to recommend a business like yours. If you're not in the answer, that's not a problem. It's an opening nobody else in your category has claimed yet.
Want help claiming it? Give us a nudge. We'll show you where you stand and how to start showing up.
Understanding that is what separates teams who use AI well from teams who are still figuring out why their AI outputs keep missing the mark.
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Happy optimising!