Google AI Mode Introduced In Australia

AI Mode officially launched in Australia last week, marking one of the biggest shake-ups in digital marketing in recent times.

According to Semrush, approximately 90% of all global searches happen via Google, so the ripple effects of AI Mode will be huge. We have already seen a large impact on traffic to websites from the introduction of AI Overviews, with a report from BrightEdge finding that search clicks to websites have fallen by as much as 30%, so it’s likely we’ll see this trend continue with the introduction of AI Mode.

What is AI Mode and how does it work?

AI Mode  uses a custom version of Google’s advanced Gemini model to let users ask longer, more complex questions and follow up, creating a conversation-like interaction. Users are also able to query in multiple ways, whether it be through typing, talking or uploading an image.

What’s the impact on website traffic?

This AI change could very likely have a large impact on website traffic. AI mode requires navigating away from the standard search result pages to a new tab containing the AI Mode interface, where it provides responses to questions with a limited number of citations. So either you’re visible in the thread by being featured in one of these citations, or not at all.

What small businesses must do now

The good news? Small businesses with genuine expertise, local trust, and clear answers can still win. But you need to adapt your strategy and rethink search. We’ve been working hard to understand what this means for our clients and how they can adapt accordingly. Here’s some things you can do.

Optimise your Google Business profile like your business depends on it (because it does)

Your  Google Business Profile  is now one of your most critical digital assets. This is where Google pulls information for local AI responses. Ensure various details and content are present and up to date such as:

Business details e.g address, phone number and operating hours

High-quality photos of your products, services, and premises

Reviews – the more, the better, and responding is encouraged

Implement Schema Markup

Schema markup is code that helps search engines understand your content better and how to display it in response to queries. Schema markup differs depending on the type of content, but some common types include:

Local business schema

FAQPage schema  for common questions

Review schema  to showcase testimonials

Service schema  defining what you offer

Create content that AI wants to cite

It may be that you need to revisit some of the old content on your site. Think about what people are searching for and be really focused on who you are writing for and what people are asking. Google’s AI prioritises content that is:

Concise and factual  with clear answers upfront

Experience-driven  from genuine expertise

Well-structured  with proper headings and formatting

Authoritative  with verifiable credentials

According to  Google’s Search Quality Evaluator Guidelines, content must demonstrate E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness) to be considered high-quality.

Double down on local relevance

Both Google AI and users love local context.  According to Think with Google, “near me” searches have grown over 900% in recent years, and AI Overviews now provide even more detailed local information, including reviews and directions.

Google Australia research  shows that 60% of potential lead generation customers who saw an AI Overview in their search results claim it makes the decision-making process faster, easier, and less overwhelming. This is particularly true for local searches with immediate intent.

Local content that works

Area-specific guides related to your services

Local event coverage showing community involvement

Customer success stories from your region

Location-based how-to content addressing local challenges

Fix your technical SEO foundation

While traffic may decline, technical excellence is now more important than ever. Sites with technical issues won’t be cited by AI. Critical technical elements include:

Page speed

Mobile optimization

Clear site structure

HTTPS security

XML Sitemap

Core Web Vitals

What Happens Next

According to  Similarweb’s analysis, zero-click searches work because they meet user needs quickly. The data shows this isn’t a bug—it’s the intended design.

Google isn’t going backwards. AI Mode will expand to more countries, more languages, and more query types. The multimodal capabilities (text, voice, image search) will become standard across all searches.

For small businesses, the window to adapt is closing but there are opportunities to be found if you think strategically about this. The businesses that will survive and thrive share these characteristics: