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AI Search Optimization: A Data-Backed Framework for Your Build vs. Buy Decision

Decide whether to build an in-house AEO team ($250K-$400K annually, 6-9 months to results) or hire a specialized agency ($5,495/month, 3-4 months to results). Learn the hidden costs, vetting criteria, and core strategies for AI search optimization.

Liam Dunne
Liam Dunne
Growth marketer and B2B demand specialist with expertise in AI search optimisation - I've worked with 50+ firms, scaled some to 8-figure ARR, and managed $400k+/mo budgets.
December 8, 2025
9 mins

Updated December 8, 2025

TL;DR: The choice between building an in-house AEO team or hiring a specialized agency depends on three factors: budget, timeline, and technical capability. In-house teams cost $250K-$400K+ in year one and need 6-9 months to show results, requiring rare AI/ML + SEO hybrid talent. Specialized agencies start at €5,495/month with month-to-month terms, delivering measurable citation improvements in 3-4 months through proven frameworks. With 89% of B2B buyers using AI for vendor research and traditional search volume declining 25% by 2026, the question isn't whether to invest but how to execute efficiently.

Understanding why AI search optimization matters now

What's happening in B2B buyer research isn't just another algorithm update. We're witnessing a fundamental shift in how prospects discover and evaluate vendors before reaching your website.

Traditional SEO optimized content to rank as a clickable link on Google's page one. In contrast, Answer Engine Optimization (AEO) targets a different outcome: getting your brand cited as the authoritative answer inside AI-generated responses. You don't need the click if ChatGPT or Perplexity already recommends you.

Three critical definitions:

Answer Engine Optimization (AEO) focuses on getting your brand accurately cited by AI assistants like ChatGPT, Claude, Perplexity, and Gemini. We measure success by citation frequency, sentiment, and share of voice in AI responses rather than traditional traffic metrics. HubSpot's AEO research demonstrates this requires fundamentally different content structures.

Generative Engine Optimization (GEO) targets generative AI search experiences like Google's AI Overviews and Bing Copilot. The objective is identical: get your content quoted and your brand positioned favorably in AI answers.

AI Visibility measures your overall presence in AI-generated content. According to Conductor's research, this includes both direct citations with backlinks and mentions where your brand appears without a link.

The urgency is data-driven. Recent Forrester research reveals that nearly 9 in 10 B2B buyers have adopted generative AI as a primary research source, with 61% specifically using AI-powered search when researching vendors. Meanwhile, Gartner predicts traditional search volume will drop 25% by 2026 as AI chatbots become substitute answer engines.

The invisible pipeline problem: Prospects ask AI for vendor recommendations, receive a shortlist excluding your company, evaluate three competitors, and sign contracts. Your sales team never sees these opportunities because the buyer never visited your website. For instance, Ahrefs' analysis shows that while AI search traffic represented only 0.5% of their total visitors, it generated 12.1% of signups—a 23x higher conversion rate. Users clicking through from AI recommendations arrive pre-qualified because the AI already narrowed their options.

When we implemented a comprehensive AEO strategy for a B2B SaaS client, they increased AI-referred trials from 550 to 3,500+ per month in seven weeks. The competitive window is closing as early movers capture category mindshare.

The in-house reality: Hidden costs and capability gaps

Building an effective AEO practice internally isn't about teaching your content team new keywords. It's an engineering challenge requiring specialized technical capabilities most marketing organizations lack.

What you actually need

Technical infrastructure: You need AI visibility tracking tools ($500-$3,000/month), schema markup platforms, LLM testing software, knowledge graph management systems, and competitive intelligence platforms. Specialized AEO tracking tools typically start at $499/month while enterprise solutions exceed $3,000 monthly. You'll also need platforms like Semrush's AI Visibility Toolkit ($99/month), NLP analysis software from Google or IBM Watson, and project management systems integrated with your CRM. The annual software budget reaches $15,000-$30,000 before you hire anyone.

Specialized talent: AEO requires expertise far beyond traditional SEO. While a Technical SEO Specialist averages $87,000 annually, AEO demands additional AI/ML engineering skills that command $175,000-$250,000. You need talent sitting at this expensive, scarce intersection between SEO and AI engineering.

Extended timeline: Even with the right people and tools, you'll spend 2-3 months establishing baseline visibility measurements and another 3-4 months before seeing meaningful citation improvements. In contrast, agencies deliver results in 3-4 months because they've already climbed the learning curve across hundreds of clients.

As detailed in our guide on building an in-house AEO team, first-year costs typically exceed $403,000 when accounting for salaries, tools, training, and overhead.

The agency route: Vetting criteria and warning signs

The rapid growth of AI search has spawned dozens of agencies claiming AEO expertise. Most are traditional SEO firms that added "AI optimization" to their service menu recently. Therefore, careful vetting is critical.

Red flags when evaluating AEO agencies

Watch for these warning signs:

  • Guaranteed rankings or citation rates: AI systems update constantly. No one can promise specific citation volumes in ChatGPT responses. Agencies making absolute guarantees don't understand how LLMs work.
  • Vague methodology: Ask how they engineer content for AI citation. If they can't articulate a specific framework or testing process, they're guessing. Real expertise isn't a black box.
  • Old SEO tactics repackaged: Keyword density, H1 optimization, and backlink building matter for Google but don't directly influence LLM citations. Agencies applying traditional playbooks deliver minimal AI visibility.
  • No proprietary tracking: How do they measure your current AI visibility? How do they track improvements across platforms? If they only use third-party tools, they lack a defensible advantage.
  • Long-term contracts with penalties: Traditional SEO agencies typically require 6-12 month minimum commitments, with many pushing for annual or multi-year agreements. AEO moves faster. Confident agencies offer month-to-month terms.

What credible AEO partners provide

A trustworthy partner demonstrates technical depth from the first conversation. Look for these specific capabilities:

  1. Free AI visibility audit: They should show exactly where you appear in ChatGPT, Claude, Perplexity, and Google AI Overviews for your buyer queries. This baseline costs nothing and reveals competitive gaps immediately.
  2. Published frameworks: Look for agencies with documented methodologies and original research. Our CITABLE framework breaks down seven components required for AI citation, tested across thousands of queries.
  3. Proprietary technology: The best agencies build internal tools for auditing AI visibility, tracking citations, and analyzing content performance across platforms. This infrastructure compounds learning effects.
  4. Transparent pricing: Comprehensive AEO services range from $5,000-$20,000+ monthly depending on scope. Discovered Labs' pricing starts at €5,495/month for 20+ articles, full tracking, and competitor monitoring, with a 14-day Sprint option at €4,995 for companies testing the approach.
  5. Month-to-month terms: If an agency locks you into annual contracts before proving value, they lack conviction in their methodology.

Build vs. buy: The decision matrix

The right choice depends on your company's maturity, budget, internal capabilities, and timeline for results. This comparison breaks down the key factors:

Factor In-House Team Specialized Agency Hybrid Model
First-year cost $250K-$400K+ $60K-$240K $150K-$400K
Time to results 6-9 months 3-4 months 4-6 months
Risk level High (unproven capability) Low (month-to-month terms) Moderate (split accountability)
Best for $50M+ revenue, existing AI team, 12+ month timeline, $400K+ budget Need results in 3-4 months, no AI expertise internally, limited content capacity, test before major commitment Enterprise with complex products, want strategic control + execution speed, planning eventual in-house build

Quick decision guide: Choose in-house if you have $50M+ revenue, existing AI research capabilities, and 12+ month timelines. Choose an agency if you need results in 3-4 months without specialized expertise internally. Choose hybrid if you're an enterprise wanting strategic control while building internal capabilities.

Core strategies for AI search optimization

Whether you build or buy, the methodology remains consistent. AI citation requires fundamentally different approaches than traditional SEO.

The CITABLE framework

Discovered Labs developed the CITABLE framework after testing content across thousands of AI queries. Seven components work together:

C - Clear entity structure: Lead with 2-3 sentences stating your entity type, core offering, and value proposition. Vague introductions kill citation chances.

I - Intent architecture: Answer the main buyer question directly, then address adjacent questions. Map content to specific user intents rather than keywords.

T - Third-party validation: AI systems trust external sources like Wikipedia, Reddit, G2, and industry publications more than owned content. Our Reddit marketing service creates authentic validation signals.

A - Answer grounding: Every factual claim needs a verifiable source. AI models skip content with unsupported assertions.

B - Block-structured for RAG: Structure content in 200-400 word blocks that function as standalone answers. Use tables, FAQs, ordered lists, and clear subheadings.

L - Latest and consistent: Timestamps signal freshness. Ensure your information is consistent across all online sources because conflicting data reduces citation likelihood.

E - Entity graph and schema: Implement Organization, Product, and FAQ structured data. Build knowledge graphs showing relationships between your product and use cases.

For implementation details, watch this video tutorial on CITABLE.

Daily content velocity matters

Frequency matters significantly more in AEO than traditional SEO. Here's why:

  1. AI models update constantly: Fresh content signals current relevance. Publishing 2-3 articles weekly worked for Google. AI visibility requires daily publishing.
  2. Quality can't drop: Each piece must meet CITABLE criteria while answering a specific buyer question directly.
  3. Surface area compounds: Daily publishing builds topical authority and maximizes retrieval opportunities across hundreds of related queries.

This volume requirement creates a major agency advantage. While traditional SEO firms deliver 10-15 blogs monthly, specialized AEO agencies produce 20+ pieces as baseline.

ROI calculation for AEO requires new metrics that don't exist in traditional analytics platforms.

Share of voice and citation rates

Your primary metric is share of voice: what percentage of relevant buyer queries result in AI platforms citing your brand versus competitors. Start by mapping 50-100 high-intent questions your prospects ask. Query each across ChatGPT, Claude, Perplexity, Google AI Overviews, and Bing Copilot, documenting when your brand appears.

A baseline of 5-10% is common for companies with strong SEO but no AEO strategy. After 3-4 months of optimized content, target 35-45% for core queries. This requires consistent tracking where agency partners with proprietary monitoring infrastructure provide significant value.

Pipeline attribution

The hardest part is connecting citations to revenue. Unlike traditional search where you track clicks in Google Analytics, AI-referred traffic often lacks clear source attribution.

Implement self-reported attribution: Add a required field to your lead forms asking "How did you first hear about us?" with options including ChatGPT, Claude, Perplexity, Google AI Overview, and Other AI assistant. Buyers who discovered you through an answer engine reliably report it because the experience is memorable.

Track indirect signals: Monitor branded search volume increases, direct traffic spikes, and form fills with no prior session history. These often indicate AI-driven discovery where the prospect researched with AI, saw your brand recommended, and navigated directly to your site.

Calculate the value by comparing conversion rates. AI-referred visitors convert 23x higher than traditional organic traffic. Our ROI calculator helps model pipeline impact based on your average deal size.

Conclusion

When choosing between building an in-house AEO team or partnering with a specialized agency, evaluate three factors: speed, cost-efficiency, and technical capability. For most B2B SaaS companies under $50M revenue, specialized agencies deliver faster time-to-value at one-third the first-year cost.

The key is selecting an agency with genuine technical depth, transparent methodology, proprietary tracking infrastructure, and flexible terms that prove confidence in delivering results.

If competitors dominate AI recommendations while you're invisible in ChatGPT, every week costs pipeline. Book a free AI Visibility Audit with Discovered Labs. We'll show you exactly where you appear across AI platforms, identify competitive gaps, and provide a concrete roadmap for improving your share of voice. We'll explain our methodology and be honest about whether we're the right fit.

Frequently asked questions

What is the difference between AEO and SEO?
SEO targets ranked links in traditional search results. AEO optimizes for direct citations and recommendations within AI-generated answers. You measure success differently: citation frequency and share of voice instead of traffic and rankings.

How long does AI search optimization take to show results?
Specialized agencies typically deliver measurable citation rate improvements in 3-4 months using proven frameworks. In-house teams face 6-9 month timelines due to learning curves, hiring, and strategy development.

Do AI content generation tools work for AEO?
No. Tools like ChatGPT and Jasper produce drafts but lack the strategic framework, fact-checking, and third-party validation required for AI citation. LLMs cite trustworthy, verified sources—not content generated by other LLMs.

What does an AEO agency cost compared to building internally?
Specialized agencies range from $5,000-$20,000+ monthly ($60K-$240K annually). In-house teams cost $250K-$400K+ in year one. The agency path delivers faster ROI for most companies.

How do I measure if my AEO investment is working?
Track share of voice (percentage of buyer queries where AI cites your brand), citation sentiment and positioning, self-reported attribution from lead forms, and pipeline contribution from AI-referred sources. Baseline 5-10% citation rates should grow to 35-45% within 3-4 months.

Key terminology

Answer Engine Optimization (AEO): The practice of optimizing content to be directly cited by AI assistants like ChatGPT, Claude, and Perplexity rather than simply ranking in traditional search results. Success is measured by citation frequency and sentiment.

Generative Engine Optimization (GEO): A specialized subset of AEO focused on generative AI search experiences like Google's AI Overviews and Bing Copilot.

AI Visibility: A brand's measurable presence in AI-generated content, including both direct citations with links and mentions where the brand appears without an accompanying link.

Citation-Worthiness: The trust signals (verifiable facts, third-party validation, structured data, consistent cross-source information) that make LLMs reference your content as an authoritative source.

Share of Voice: The percentage of relevant buyer queries where your brand appears in AI-generated responses compared to total queries tested. A core AEO metric replacing traditional search rankings.

Entity Graph: The network of relationships between your product, use cases, industries, competitors, and complementary technologies that helps AI systems understand your market position.

LLM Retrieval: The process by which large language models identify and extract relevant passages from source documents when generating answers. Content structured for easy retrieval significantly increases citation probability.

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