AI Search is Coming for Your Business: The 3 Waves You Need to Understand in 2025

Last Updated: August 3, 2025

_Author: Jason Poonia, Founder & Director of Lucid Media_

Search is fundamentally changing, and most business owners have no idea what's coming.

For over two decades, Google has dominated search with more than 90% market share. But in late 2024, something unprecedented happened: Google's share dropped below 90% for the first time.

The reason? AI-powered search is transforming how people find businesses online.

ChatGPT now has over 120 million daily users. By 2026, analysts predict that up to 30% of customers will find businesses through AI search rather than traditional search engines.

If you're a service-based business owner, this shift will fundamentally change how customers discover you. The businesses that understand and adapt to AI search will thrive. Those that don't will become invisible.

Let me break down exactly what's happening and what you need to do about it.

The Death of Keyword Search

For 25 years, we've been training ourselves to search like robots.

When you wanted to find a plumber, you didn't type "I need someone to fix my leaking tap urgently." You learned to type "emergency plumber near me" because that's what Google understood.

We adapted our natural language to match how search engines processed queries.

AI search reverses this completely. Now the technology adapts to how humans naturally communicate.

The Old Way (Keyword Search)

"best accountant Auckland tax small business"

The New Way (Conversational AI Search)

"I'm a small business owner in Auckland making about $200K a year. I'm probably paying too much tax and need an accountant who specialises in small businesses and actually proactive about tax planning. Who should I talk to?"

The second query is how people actually think and speak. AI search understands this natural language and provides relevant answers.

The Three Waves of AI Search

AI search isn't one single change - it's evolving in three distinct waves. Each wave will impact your business differently.

Wave 1: Conversational AI Chatbots (Happening Now)

This is what most people are experiencing today with tools like ChatGPT, Claude, Gemini, and Perplexity.

How it works:

• Users ask questions in natural language
• AI synthesises information from multiple sources
• Provides direct answers rather than lists of links
• Can engage in back-and-forth conversation to refine results

Current state: These chatbots excel at informational queries ("how to fix a leaking tap") but are still developing their ability to handle commercial intent searches ("hire a plumber to fix my tap").

The major players:

| AI Chatbot | Company | Best For | Search Backend | | --- | --- | --- | --- | | ChatGPT | OpenAI | General queries, conversation | Bing | | Claude | Anthropic | Copywriting, content creation | Various sources | | Gemini | Google | Coding, deep reasoning | Google | | Grok | XAI (Elon Musk) | Fast updates, competitive | Unknown | | Perplexity | Independent | Focused AI search with pros/cons | Proprietary |

What this means for your business:

Right now, these chatbots often favour national chains and larger companies over local businesses. If someone asks ChatGPT or Claude "who's the best plumber in city]," they're more likely to see Mr. Rooter or other franchises than your local business.

This isn't because you're not good - it's because these AI systems don't yet have robust local business data.

But this is changing fast.

Google recently launched "AI Mode" (currently in beta) which shows enhanced search results with AI summaries that better emphasise local businesses.

Wave 2: AI Research Agents (Emerging Now)

This wave is already functional but not yet widely adopted. Research agents go far beyond simple question-and-answer.

How it works:

• You give the AI a complex research task
• It creates a multi-step research plan (which you can edit)
• It systematically searches multiple sources
• Compiles comprehensive reports with analysis
• Can even create audio summaries (podcast-style overviews)

Real-world example:

Instead of asking "who's a good plumber," you might ask:

"Research the top 5 plumbers in my area. For each one, tell me their strengths, weaknesses, pricing if available, what customers say in reviews, any complaints, and your recommendation on which one I should hire."

The AI research agent would:

• Search multiple review sites (Google, Yelp, BBB, Angie's List)
• Check for complaints and licensing issues
• Analyse review patterns and sentiment
• Look for pricing information on websites
• Compile everything into a comprehensive report
• Provide a ranked recommendation with reasoning

Why this matters for your business:

To show up in these research reports, your website needs:

• Detailed information about your services
• Clear pricing (even ranges help)
• Comprehensive "About" content
• Service area information
• Case studies or portfolio examples
• FAQ sections addressing common concerns

The businesses that provide the most helpful, detailed information will dominate AI research agent recommendations.

Hiding information (like not listing prices) actually hurts you because the AI has nothing to work with.

Wave 3: Autonomous AI Agents (Early Beta)

This is the future that's just beginning to emerge. True AI agents can act independently to complete tasks, not just provide information.

How it works:

• You tell an AI agent what you need done
• It autonomously completes the task without further input
• This includes making phone calls, booking appointments, comparing quotes, making purchases

Current examples (mostly from China):

GenSpark: Can make actual phone calls to businesses to get quotes, ask questions, or book services.

Manis: Can browse websites autonomously, take screenshots, compile research, and create comparison reports.

Google's experimental agents: Can book restaurant reservations, schedule appointments, and handle other service bookings.

What this means for your business:

Soon, you might receive phone calls or contact form submissions from AI agents shopping on behalf of real customers.

These agents will:

• Call multiple businesses to get quotes
• Ask detailed questions about services
• Compare your offerings against competitors
• Report back to the human making the decision

Businesses need to prepare for:

• AI agent phone calls (which will sound like real people)
• Automated contact form submissions from agents
• Competitors using AI agents for competitive research
• Need to provide clear, consistent information across all channels

The trust barrier:

Right now, letting AI agents act autonomously feels uncomfortable - similar to how online shopping felt risky 20 years ago.

But adoption is coming. People will start trusting AI agents to:

• Order groceries
• Book routine appointments
• Get quotes from service providers
• Handle simple transactions

The businesses that are prepared for this shift will have a massive advantage.

The Sales Funnel Reality

Understanding where AI search fits in the customer journey is crucial.

The typical sales funnel:

Top of Funnel (97% of searches):

• Informational queries
• "How to fix a leaking tap"