AI SEO: Are You Ready for Google's AI Mode?

Google's AI Mode represents the biggest shift in search since the introduction of featured snippets. Instead of displaying a list of links, Google now generates comprehensive AI answers that synthesise information from multiple sources. For Melbourne businesses, this changes the SEO game fundamentally — and the businesses that adapt now will capture traffic that their competitors lose.

What Is Google AI Mode?

Google AI Mode (building on AI Overviews) uses generative AI — powered by Google's Gemini model — to create detailed answers to search queries by pulling and synthesising information from across the web. When a user asks "what's the best approach to SEO for a dental practice in Melbourne," instead of showing 10 links, Google generates a comprehensive answer that cites specific sources.

The key distinction: AI Mode doesn't just summarise one page. It combines information from multiple sources into a cohesive response, then provides citation links for users who want deeper information. This means being cited as a source in an AI response is the new equivalent of ranking on page one.

How AI Mode Chooses Sources

Understanding Google's source selection criteria is crucial for Melbourne businesses that want to be cited:

Entity authority: Google's Knowledge Graph maintains an understanding of businesses, people, and organisations as "entities." Businesses with strong entity profiles — consistent NAP data, verified Google Business Profile, Wikipedia presence, mentions across authoritative sources — are more likely to be cited. For Melbourne businesses, this means your Google Business Profile, local directory listings, and industry association memberships all contribute to your AI visibility.

Content comprehensiveness: AI Overviews preferentially cite content that provides complete, detailed answers rather than thin pages. A 2,000-word guide that covers a topic from every angle will be cited over a 300-word blog post that touches on the surface.

Structured data signals: Pages with proper schema markup — FAQ schema, HowTo schema, LocalBusiness schema — give Google's AI structured extraction points. This makes it dramatically easier for the AI to pull specific facts, steps, or answers from your content.

Freshness and accuracy: AI Mode has been observed to preferentially cite recently updated content, particularly for queries where recency matters. A Melbourne accountant's page about tax rates updated in 2026 will be cited over a competitor's page last updated in 2023.

What Melbourne Businesses Need to Do Right Now

Audit your entity presence: Search for your business name on Google and verify that your Knowledge Panel is complete and accurate. Ensure your Google Business Profile, LinkedIn company page, Australian Business Register entry, and industry directory listings all contain consistent information. Inconsistencies confuse Google's entity recognition and reduce your chances of being cited.

Restructure content for AI extraction: Review your key service and informational pages. Each page should have clear H2 headings that match common search queries, with concise answers in the first paragraph under each heading. Think of each H2 section as a standalone answer that Google's AI could extract and cite.

Implement comprehensive schema markup: At minimum, every Melbourne business website should have LocalBusiness schema (with opening hours, service area, accepted payment methods), FAQ schema on service pages (covering the questions your customers actually ask), and Article schema on blog posts.

Build topical authority through content clusters: AI Mode favours sites that demonstrate deep expertise on a topic through multiple interconnected pages. A Melbourne law firm that has 15 detailed pages about family law — covering property settlement, custody, mediation, financial agreements — will be cited far more often than one with a single "Family Law Services" page.

Monitoring Your AI Search Visibility

Currently, there's no single tool that comprehensively tracks AI Mode citations. Here's a practical monitoring approach:

Manual testing: Regularly query Google with the prompts your target customers would use. Search in incognito mode to avoid personalisation. Screenshot AI Overviews where your business appears (or doesn't) and track changes monthly.

ChatGPT and Perplexity testing: Google isn't the only AI search engine. Test your visibility across ChatGPT (with Browse enabled), Perplexity AI, and Microsoft Copilot. Each has different source selection criteria, but strong entity presence and comprehensive content improve visibility across all platforms.

Google Search Console data: Watch for changes in click-through rates for queries where AI Overviews appear. A declining CTR on high-impression queries may indicate your content is being cited in the AI Overview (users get the answer without clicking) — which is actually a positive signal of authority, even if clicks decrease.

The AI Visibility Audit: Assessing Where Your Business Stands

Before implementing changes, you need to understand your current AI visibility baseline. Here's a systematic audit process any Melbourne business can follow:

Step 1 — Test your AI presence across platforms: Open ChatGPT, Perplexity AI, Google (with AI Overviews enabled), and Microsoft Copilot. Search for the top 10 queries your target customers use. Record whether your business is mentioned, cited, or entirely absent from each AI response. This baseline tells you exactly where you stand.

Step 2 — Analyse competitor AI visibility: Run the same queries and note which competitors are being cited. Examine their websites — what content, schema markup, and entity signals do they have that you don't? The gap between your AI visibility and your competitors' visibility represents your specific opportunity.

Step 3 — Audit your entity footprint: Google your business name and check whether a Knowledge Panel appears. Verify that your Google Business Profile, LinkedIn company page, ABN registration, and industry directory listings all contain consistent information. Inconsistencies in your business name, address, or phone number across these sources fragment your entity identity and reduce AI citation likelihood.

AI Search Optimisation vs. Traditional SEO: What Changes, What Stays

The critical insight: AI search optimisation doesn't replace traditional SEO — it builds on top of it. A business with strong traditional SEO foundations (technical health, quality backlinks, good content) is far better positioned to gain AI visibility than one trying to skip straight to AI optimisation. Think of traditional SEO as the foundation and AI optimisation as the additional layer that captures the growing share of AI-mediated search traffic.

Building an llms.txt File: Direct Communication With AI Crawlers

A growing practice among forward-thinking businesses is creating an llms.txt file — a machine-readable document placed at your website's root that tells AI systems what your business is, what you do, and what information is authoritative. While this isn't an official standard yet, major AI providers (including OpenAI and Anthropic) have acknowledged its utility as a signal.

What to include in your llms.txt: Your business name, location, and service area. A concise description of your expertise and services. Links to your most authoritative content pages. Information about your team's credentials and experience. This file acts as a structured introduction that helps AI systems understand and accurately represent your business.