Core Viewpoint - The article discusses the emergence of Generative Engine Optimization (GEO) as a new business model driven by AI, highlighting the challenges and opportunities it presents for brands and startups in the evolving digital landscape [3][4][25]. Group 1: Market Dynamics - Over 60% of consumers are now bypassing traditional search engines like Google and Baidu, opting to ask AI assistants directly for product information [3]. - The global AI search engine market is projected to reach $43.63 billion by 2025, with a compound annual growth rate (CAGR) of 14% from 2025 to 2032 [12]. - A report from Adobe indicates that traffic to U.S. business websites increased by 1200% from July 2024 to February 2025, largely driven by AI assistant referrals [11]. Group 2: Company Insights - Profound, a startup founded in 2024, has quickly gained traction, securing $20 million in funding and being adopted by thousands of marketers from Fortune 100 companies [3][10]. - Profound offers various services, including Answer Engine Insights and Agent Analytics, to help brands understand and optimize their presence in AI search engines [17][18]. - The company has processed over 100 million AI search queries monthly and operates in 18 countries, with early adopters reporting a 25%-40% increase in AI response volume within 60 days [23]. Group 3: Competitive Landscape - Other players in the GEO space include Daydream, which focuses on consumer shopping searches, and Goodie AI, which specializes in AI search visibility [13][14]. - Companies like Ahrefs, which transitioned from SEO to GEO, pose significant competition due to their established customer bases and expertise [14]. - The GEO model faces challenges as it relies heavily on understanding and adapting to the algorithms of large language models, which are subject to frequent changes [25][26]. Group 4: Challenges and Future Outlook - The GEO business model is seen as a "cat-and-mouse game," where startups must continuously adapt to changes in AI algorithms, which can render previous strategies ineffective [5][26]. - The effectiveness of GEO tools is often difficult to attribute, complicating budget decisions for brands [27]. - Despite the challenges, there is potential for GEO companies to evolve by expanding their service offerings and leveraging brand data to create long-term value [28].

Core Insights - The rise of AI assistants like ChatGPT is shifting consumer behavior, with over 60% of users bypassing traditional search engines like Google and Baidu for product inquiries [1] - Profound, a startup founded in 2024, has gained significant traction in the market by helping brands navigate AI-generated content and optimize their visibility in AI search engines [1][7] - The venture capital community is recognizing the potential of Generative Engine Optimization (GEO) as a new frontier, with predictions that it will reshape digital marketing strategies by 2025 [2][8] Company Overview - Profound has raised a total of $23.5 million in funding, with a seed round of $3.5 million in August 2024 and a Series A round of $20 million in June 2025 [7] - The company offers a range of services including Answer Engine Insights, Agent Analytics, and Conversation Explorer, aimed at enhancing brand visibility in AI search environments [14][20] - Profound's user base includes notable companies like Indeed and MongoDB, processing over 100 million AI search queries monthly as of June 2025 [20] Market Trends - The global AI search engine market is projected to reach $43.63 billion by 2025, with a compound annual growth rate (CAGR) of 14% from 2025 to 2032 [8] - The application layer of AI search is expected to dominate the market, accounting for 61.7% of the total share in 2025 [8] - The increasing use of AI search engines is reshaping consumer habits, with 39% of consumers having used AI search tools, indicating a significant shift in digital marketing dynamics [7] Competitive Landscape - Other emerging companies in the GEO space include Daydream, which focuses on consumer-oriented shopping searches, and Goodie AI, which specializes in AI search visibility [9][10] - Profound faces competition from established SEO companies like Ahrefs, which are transitioning to address the needs of the AI-driven market [10][12] - The GEO business model is characterized by a constant battle with evolving AI algorithms, making it essential for companies to adapt quickly to maintain relevance [22][24] Challenges and Opportunities - The GEO model presents inherent challenges, including the difficulty in attributing success to specific strategies due to the opaque nature of AI algorithms [23] - Companies in the GEO space must develop robust technical capabilities and maintain a competitive edge to capitalize on the growing demand for AI search optimization [24] - The potential for long-term value exists for GEO companies that can effectively accumulate brand data and transition into broader service offerings beyond just optimization [24]