Why Google's AI Answers Are Eating Your Website Traffic (And What to Do About It)
Google's AI Overviews are answering questions without sending users to your site. Here's what you need to know and how to adapt your SEO strategy now.
Here is something most business owners haven't fully reckoned with yet: Google is aggressively becoming the destination, not the middleman.
When the US Department of Justice antitrust trial against Google got underway, internal documents came out that most digital marketers found uncomfortable. Among the revelations: Google has been deliberately reducing the number of clicks that flow to external websites. AI Overviews, the AI-generated answer blocks that now appear at the top of search results, are central to that strategy. Google wants you to find your answer on Google. Not on your website. Not on a competitor's. On Google.
For SMEs that have built their lead generation on organic search traffic, this is not an abstract problem. It is happening right now.
What AI Overviews Actually Are (And Why They Matter)
AI Overviews are the blocks of AI-generated text that appear at the very top of Google search results, above the traditional blue links. When someone searches for "how to improve website speed" or "what does a digital marketing agency do," Google now generates a summarised answer from across the web. Often, the user reads the answer and leaves. No click. No website visit.
This is what the SEO industry calls a zero-click search. The concept isn't new. Google has been expanding zero-click results since 2016, first with featured snippets, then with People Also Ask boxes, then with Knowledge Panels. AI Overviews are just the most aggressive version yet.
The scale is significant. Industry research suggests roughly 58 to 65 per cent of Google searches in major markets now end without a click to any external website. Not all of that is due to AI Overviews specifically, but AI Overviews have accelerated the trend meaningfully since their wider rollout in 2024.
For Singapore, where Google holds over 90 per cent of the search market and digital ad spend is climbing year on year, this matters enormously.
The Searches Most at Risk
Not every search query is equally affected. Before you panic and conclude that SEO is dead, it helps to understand where AI Overviews are most disruptive.
Informational queries are the primary casualty. Searches that start with "what is," "how to," "why does" or "best way to" are exactly where AI Overviews thrive. These are also the queries that drive a huge chunk of blog traffic for most SMEs. If your website traffic strategy depends on informational articles teaching people about your industry, expect continued pressure.
Commercial and transactional queries remain largely human-driven. When someone types "digital marketing agency Singapore" or "buy running shoes Singapore," they still want options, prices, and somewhere to click. AI Overviews are less likely to fully replace that intent. Local searches like "dentist near Toa Payoh" still drive map packs and local results. These are relatively protected, for now.
The middle is complicated. Queries that used to funnel readers into your content marketing pipeline, such as "how to choose an accounting firm" or "what to look for in a web designer," are increasingly answered without a click. These were valuable for building awareness and trust. Losing them quietly hurts pipeline without always showing up in obvious analytics drops.
What the Traffic Decline Looks Like in Practice
Here is a simplified version of what has happened to many websites since late 2024. A company publishes quality blog content on topics relevant to their services. That content ranks well. Traffic is steady. Then, AI Overviews start appearing for those same queries. Rankings haven't changed, but click-through rates have dropped noticeably, sometimes by 20 to 40 per cent on informational articles. Total page views fall. Leads generated from content drop accordingly.
The frustrating part is that the website still ranks. Google is still using your content to generate those AI answers. But the traffic doesn't follow.
Backlinko's research into Google user behaviour found that 65 per cent of searchers still click on traditional organic results in a standard session. But AI Overviews appear before those results, and sessions involving AI Overviews see meaningfully different click behaviour. Industry analysts estimate organic traffic losses of 15 to 30 per cent for heavily informational websites in categories where AI Overviews are common.
For context, an SME with 5,000 monthly organic visitors losing 25 per cent of that traffic is not a minor inconvenience. That is 1,250 fewer visitors per month from the same Google presence.
Four Things to Do Right Now
The right response is not to abandon SEO. It is to adapt your strategy to a search landscape that increasingly rewards different things.
1. Shift Toward Bottom-of-Funnel Keywords
Informational content is under the most pressure. Bottom-of-funnel queries, the ones where someone is actively comparing options or ready to buy, are far more resistant to AI Overviews. Searches like "Magnified Technologies review," "best web design company Singapore for SME," or "compare SEO packages Singapore" still drive clicks because the searcher needs to evaluate and decide.
Review your current keyword strategy. If most of your target keywords start with "how to" or "what is," it is time to add more commercial intent keywords. Write content that helps people choose, compare, and decide. That is where clicks are stickiest.
2. Build Your Email List Like Your Business Depends On It
Because in a world where Google traffic becomes less reliable, it does.
Email is the one audience you own outright. Google cannot reduce your click-through rate on an email you sent directly to a subscriber. No algorithm change touches your list.
SMEs tend to underinvest in email list building, often treating it as an afterthought behind social media and SEO. Reverse that priority. Add a clear email signup to your website. Offer something genuinely useful: an industry guide, a checklist, a regular newsletter with insights. Every email subscriber is an audience member you control directly.
This is not a new idea. It just became more urgent.
3. Add Schema Markup to Your Key Pages
Schema markup is structured data code that helps Google understand exactly what your page is about. It is also one of the ways Google selects sources to cite in AI Overviews.
Sites with clean, well-structured schema markup are more likely to be referenced as the source of an AI Overview answer. That does not always mean you get a click, but it builds brand visibility and can drive branded searches. When someone sees your business name cited in an AI Overview repeatedly, they start searching for you by name.
The most useful schema types for SMEs are LocalBusiness schema (for your business details and location), FAQ schema (for common questions you answer), and Service schema (for your specific service offerings). These are not especially complicated to implement, but they do require someone who knows what they are doing.
4. Diversify Your Traffic Sources Now, Before You Have To
The businesses that will weather this change best are those that started diversifying their traffic mix before it became urgent. YouTube is the second-largest search engine in the world, and video content is largely immune to AI Overview pressure. A well-positioned video on "how to choose an SEO agency in Singapore" still drives genuine engagement and trust.
LinkedIn organic reach, while imperfect, has high intent among professional and B2B audiences. A useful post from your business or its founder reaches a different, often more qualified, audience than a blog article. The same applies to Google Business Profile, which remains valuable for local search and drives calls and direction requests independent of website traffic.
For SMEs in B2B services, especially professional services and technology, focusing on one or two of these channels deeply beats spreading thin across all of them.
The Longer View
Google's move toward AI-generated answers is not a temporary experiment. The financial incentive is clear: the more time users spend on Google properties, the more ad revenue Google generates. AI Overviews are good for Google's business. They are going to keep growing.
This does not make SEO pointless. It makes smart SEO more important. Rankings still drive visibility. Being cited in AI Overviews builds authority. Local search is still largely click-driven. The mistake would be to keep running a 2020 SEO strategy in a 2026 search landscape.
The businesses that adapt now, by owning their audience through email, targeting higher-intent keywords, and building presence beyond the traditional blue link, will be in a far stronger position than those that wait to react.
Worried your organic traffic is quietly declining? Magnified Technologies helps SMEs build SEO strategies that account for the current reality of AI search. We focus on what actually drives leads, not just rankings. Find out how we work with SMEs here.
Note: Traffic impact statistics cited in this article are industry estimates drawn from multiple research sources. Actual impact varies significantly by industry, keyword mix, and content type. This article does not constitute specific performance guarantees.