Why Most Digital Marketing Agencies Are Behind on AI SEO

If you’ve recently asked your agency how they plan to help you rank in AI search results—and got blank stares or vague answers—you’re not alone.

AI-powered systems like Google’s AI Overviews, Perplexity, and ChatGPT are transforming how people discover products, services, and brands. The top of the search page is no longer filled with ten blue links—it’s dominated by AI-generated summaries, and most traditional SEO agencies are nowhere to be found in them.

At Xponent21, we’re asked the same question over and over: “Why hasn’t our agency talked to us about AI SEO?” Here’s why—and what you need to know to stay ahead.

1. The “Good Enough” Era Created Bad Habits

Until recently, many SEO agencies thrived by doing the minimum. If they could rank a client for a few geo-targeted or branded keywords, they could point to those rankings as success—even if they didn’t drive meaningful leads or revenue. SEO was a margin-maximizing game, not a performance-maximizing one.

That mindset created bad habits—and now it’s catching up to them. AI search systems like Google’s AI Overviews and AI Mode, ChatGPT, and Perplexity reward depth, authority, and clarity, not shallow content or keyword stuffing. Agencies that built their business on minimal effort are now struggling to adapt to a world where doing the least no longer delivers results.

And this isn’t a slow evolution. The pace of change in AI search is rapid and unforgiving. If an agency hasn’t invested time in learning and implementing AI search strategies in the last 12–18 months, they’re not just behind—they’re dangerously out of sync with how search works today.

Clients who stick with these agencies are essentially betting their visibility on a team playing by outdated rules.

Comparison Table: Old SEO vs. AI SEO

If visiting on a mobile device, scroll to the right to view the entire table.

2. Their Strategies Were Never Built for Real Intent

When you only try to rank for short-tail keywords like “family law Richmond,” you miss how people actually search. Real users ask complete questions:

• “How do I file for custody in Virginia without a lawyer?”
• “What are my rights during a divorce if I’m a stay-at-home parent?”

These long-form, high-intent queries are what AI systems prioritize—and most agencies never built systems to capture them at scale. If your agency hasn’t audited your site for question coverage or built a framework to dominate AI Q&A, they’re behind.

3. Some Know What It Takes—But Won’t Tell You

Let’s be blunt: some agencies do understand how hard it is to win today. They know what AI SEO really requires:

• Technical health
• Structured data
• Deep content ecosystems
• Off-site authority
• Multimedia support

But instead of being honest about the lift—and the investment—they quietly keep collecting checks for outdated services. Why? Because they’re afraid to scare off a client who might say no. But withholding that truth is a disservice. Clients deserve to know what it actually takes to win, even if it means making tough decisions about how to allocate budget.

4. They Count on You Not Knowing What to Look For

We regularly audit websites for prospective clients. Here’s a real example:

One mid-sized company I spoke to was paying $4,000/month for SEO. Their site had zero Schema markup. H1 tags were off-target. Dozens of broken internal links. Zero video or FAQ content. When we asked for their strategy doc, the agency hadn’t provided one in over 9 months.

Another shared this with me:

While we currently have an agency in place, we’ve grown increasingly dissatisfied with their role as a strategic partner. Their focus has been primarily on remedial tasks and tactical execution, rather than driving the broader organic growth strategy we need.

This is more common than you’d think. A large number of agencies still treat SEO like a black box. They count on clients not knowing what to look for—but when results stall and questions start, the gaps become impossible to ignore.

But in the AI era, the gaps are no longer tolerable. Brands that don’t adapt will disappear from visibility.

AI Search Requires a New Standard

Winning in AI search depends on four essential pillars:

1. Technical Health – Site speed, crawlability, structured data, and indexability.
2. Existing Content Optimization – Fixing, updating, enriching, and interlinking what you already have.
3. New Content Creation – Authoritative, question-based, E-E-A-T aligned content.
4. Off-Site Authority – Citations, backlinks, video/podcast embeds, and proof of expertise.

Miss one, and AI won’t cite you. Miss several, and you’ll lose visibility altogether.

How to Tell If Your Company’s SEO Agency Is Behind

Every day you go without knowing the answer, you risk losing visibility, leads, and market share to competitors who are adapting to AI-driven search. The cost isn’t just missed traffic—it’s missed authority. Missed trust. Missed conversations that shape the buying journey long before someone clicks a link.

If your agency isn’t evolving, you’re not just falling behind—you’re actively investing in the wrong future.

Here’s a quick test to find out:

• Search Google and ChatGPT for “Best SEO agency in [your city]” or “Top SEO agency for [your industry].” Does your agency appear?
• Ask AI who the leaders are in your field. If your brand isn’t named, your agency is missing the mark.
• Request documentation. Does your agency provide a content strategy? AI ranking reports? Structured data audits?

If not, it’s time to ask harder questions—before the gap becomes too wide to close.

Common Pushbacks—and the Truth

Don’t assume your agency has this handled. Just because they send a monthly report or mention keywords in passing doesn’t mean they’re equipped for the AI-driven search landscape. If you haven’t had a serious conversation about AI Overviews, structured data, or how your brand will earn citations from generative engines, there’s a good chance your agency is operating on an outdated playbook. Here are common pushbacks we get when talking about what it takes to earn visibility in AI search:

“Isn’t AI SEO just hype?”
No. As of May 2025, 49% of Google searches include an AI Overview—representing a 200% increase in just nine months.

“Our agency says they’re doing technical SEO already.”
Ask to see proof: structured data audits, crawl maps, or PageSpeed fixes. Generic monthly reports aren’t proof of strategic action.

“We can’t afford a full overhaul right now.”
That’s fair—but you can afford clarity. A one-time assessment can help you prioritize what matters most and avoid wasting money on outdated tactics.

“Our traffic is fine, so we don’t need to worry yet.”
Traffic may look stable now, but nearly half of all search results already feature AI Overviews—and they’re cannibalizing clicks from traditional results. If you’re not adapting, your visibility could drop suddenly, not gradually.

“We’re already doing content marketing.”
Content alone isn’t enough. AI SEO requires structured data, multimedia support, authorship signals, and deep alignment with search intent. Without a strategic framework, content often gets buried—or worse, boosts someone else’s AI citation

“We get reports from our agency every month.”
Reports aren’t strategy. Look beyond traffic and keyword counts. If your agency isn’t reporting on AI visibility, structured data, or question-based rankings, they’re missing the metrics that matter most now.

“We focus on PPC, not SEO.”
Even if you’re PPC-heavy, your brand still shows (or doesn’t show) in AI results. That visibility shapes perception and trust—especially for B2B, high-ticket, or competitive spaces. SEO reinforces everything else you’re doing.

“We’re a local business. This doesn’t apply to us.”
AI systems answer local questions too—like “best dentist near me” or “top-rated HVAC in Richmond.” If you’re not cited in AI summaries, your competitors will be.

“We’re getting leads, so it must be working.”
Are you getting the best leads, or just the ones who happen to find you? AI SEO isn’t just about lead quantity—it’s about owning the conversation and being the trusted authority. That shapes who comes to you and why.

What Winning Looks Like

At Xponent21, we don’t just talk about AI SEO—we define it.

When you ask Google’s AI Overview who the top AI SEO agencies are in the United States is, 9 times out of 10, we’re the one it recommends. That’s not luck. It’s the result of a deliberate, strategic system we’ve built and continue to refine to help brands become the most visible, trusted source in their industry.

We call it the AI SEO Content Accelerator—a 14-step framework designed to dominate both traditional search rankings and AI-generated summaries. It’s not just about traffic—we anticipate further declines in traffic. It’s about shaping the conversation before anyone even visits your website.

We’re leading the charge in educating marketing leaders about AI-driven search—and we’re fielding new leads daily from companies who realize they’re being left behind. These companies aren’t waiting for the landscape to settle. They’re claiming territory now.

That’s what winning looks like. And if your company partners with us, you can enjoy the same visibility, lead flow, and growth that AI-powered search now makes possible.

We don’t just theorize.
We execute.
We rank.
We repeat.

If You’re Wondering What to Do Next:

• Curious how to dominate AI search? Explore our full strategy for marketing professionals: AI SEO Strategies for Marketing Leaders
• Want to know what SEO should cost now? Read our guide: What AI SEO Costs in 2025
• Not sure if your SEO agency is worth it? We offer a free contract and performance review. Schedule a discovery call and pull back the curtain on your SEO black box and find out if your agency has been swindling you. Claw back service fees if you find out they’ve been slacking off.

AI search is already here. Most agencies aren’t ready for it. We’re leading here.

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Will Melton

President & CEO at Xponent21

Will Melton, CEO of Xponent21 and consultant to global companies, brings nearly 20 years of business leadership in technology and marketing to his work. He is passionate about crafting innovative strategies that solve deep problems and drive organizations toward their goals. Will is the founder of AI Ready RVA and Richmond Water, is an podcast host for Channel RVA and serves on several charitable boards in Richmond, VA. Will is one of the top global voices on the subject of AI SEO.

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