Make Your Brand the Category Leader in AI Search: 5 CEO Considerations for PR Budgets in 2027

Gartner saw this coming with a prediction from November 2025 that PR budgets would double by 2027. That prediction was largely based on the rise of AI search, the need for brands to show favorably in generative search results and the significant influence PR has in those outcomes.

Organizations that recognize this shift and invest in PR and MarCom accordingly will see a much greater competitive advantage. For CEOs and CFOs still finalizing next year’s resources, here are five considerations to inform PR and MarCom budgets in the generative search boom.

1. More B2B and B2C buyers use AI search to discover and shop

AI search platform traffic is up 70% in 2026, notably in Gemini, ChatGPT and Claude. And generative AI is fundamentally changing the buying landscape in both B2B and B2C.

For B2B buyers, generative AI is now the starting point for discovery and for justifying or de-risking a purchase, with 51% of B2B software buyers beginning their purchasing process with AI.¹

For B2C buyers, 60% of consumers use AI to shop. With an estimated 20% of all online retail sales globally influenced by AI agents and AI tools as of Nov/Dec 2025,² that percentage will no doubt increase this holiday season as AI becomes further embedded into everyday tools.

The data is clear: people are flocking at an ever-increasing rate to generative AI for considering, validating and deciding on what products and services to buy. But that’s likely no surprise to anyone reading this.

The recent twist is that showing up consistently as the answer requires a strategic, steady flow of effective content coverage due to “AI citation decay.” Generative engines favor recency and will replace a citation with a new one if they find a more recent, verified, trusted source. On average, content that helps a brand get surfaced will “decay” after 30 days if it’s not refreshed or repurposed. Because of this, it is essential your budget includes healthy content investment at each stage of the buyer journey to ensure your brand remains part of the generative search narrative.

2. AI search traffic converts at a higher level

By now, most people have probably seen this stat: 68% of Google searches now end without a click³ because of AI overviews. But those who do click a link from an AI overview are higher quality leads. They spend more time on the site and convert 31% more often.⁴

It’s clear that a greater investment in AI search visibility ties directly to increased conversion and ultimately revenue. But what investments will move the generative engine optimization (GEO) needle?

Other forms of marketing and business development spend (e.g., email marketing, influencer marketing, etc.) are absolutely still required, but for the hyper-growing segment of buyers using generative search to inform buying decisions, the biggest influencer of AI visibility is effective third-party editorial content at scale – which is ripe for PR & MarCom to shape and deliver.

3. AI monitoring reveals areas where your customers are searching but no brand is showing up

Using AI visibility monitoring tools can identify new target audiences, or more specifically, new categories where you may want your brand to appear.

When a user enters a prompt in generative search, 15% of the time there is no brand mentioned or cited.⁵ That is a massive amount of unclaimed GEO real estate. It’s essentially white space up for grabs.

New categories such as “pet safe floor cleaners for hardwood floors in the Midwest that are smell-free” get invented in the AI answer based on how people are searching as a conversation (vs. keyword search) and based on recently presented, trusted information.

There is a first-mover advantage right now in AI search. PR professionals can ask where your category is being discussed with no brand attached and deploy content strategies to claim the white space. Investment is required for a GEO monitoring tool that provides not just data but direction so that your communications team is fully enabled to apply their creativity.

4. Access to real-time audience analysis can drive strategy

Gone are the days of spending tens or hundreds of thousands of dollars on A/B testing only to wait for weeks to see which content performs better. Communications professionals now have the ability to test which stories will perform better with target audiences thanks to content planning tools that use real-time data, provided they have the budget for both the tools and execution levers.

Beyond content testing, PR can now use AI audience analysis to provide broader voice of customer intelligence. For example, what your customers or prospective customers are asking about you, where they need more information or support, where they are getting their answers, when your competitors are answering the questions, and what new target audiences are emerging for your category. This kind of elevated PR support can inform business strategy.

5. Competitive intelligence with a whole new lens

There are your traditional competitors and there are competitors determined by AI. They aren’t necessarily the same. The ones determined by AI could be the companies that are investing more heavily in GEO or that AI determines are a trusted, credible, authoritative answer to user questions. This list of competitors as viewed by AI may provide insight into your business strategy.

For example, if your company primarily sells through a channel, which resellers show up in AI search alongside (or in place of) yours can shed light on how much they are investing in GEO and which ones you may want to further support.

Strategic communications leaders who understand how the competitive set is performing in AI search can develop a robust content deployment plan to advance strategies that are working or combat emerging competitive pressure.

To win in 2027, CEOs must significantly increase budgets for their PR and MarCom teams

PR agencies and MarCom teams are uniquely poised to tangibly increase presence in AI search results through integrated communication strategies. They know how to tell deeply human, compelling brand stories with the authenticity people crave in the sea of AI-generated content. Given how fast generative engines look for freshly verified content, this must be an always-on motion. Companies that increase their PR investment in 2027 will most certainly have the competitive advantage in being AI search’s recommended answer.

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Sources

1. G2
2. Salesforce
3. Similarweb
4. Adobe
5. Brandpoint Intelligence