A new study by Snowball Productions has found that local businesses are missing from nearly half of all AI-generated answers to everyday consumer questions in Australia, raising concerns about how generative AI platforms represent local firms. The research, titled The Australian AI Answer Gap, tested 50 common queries across ChatGPT, Perplexity, Gemini, and Google AI Mode. In 23 of those queries—46%—no Australian business was named in the response, indicating a structural gap between consumer search habits and local business visibility on AI platforms.
One of the study's most striking findings is the prominence of Reddit in AI responses. When local businesses were absent, Reddit was the top-cited source, outperforming local business websites in frequency. This suggests that AI systems often rely on user-generated content and aggregators over direct business sources. The authority gap compounds this issue: businesses that did appear held only a quarter of the authority of sources ranked above them, as measured by signals AI systems use to judge credibility. This gap helps explain why local firms are passed over in favor of forums, aggregators, and international publishers.
The implications extend beyond any single platform. As consumers increasingly use AI tools for local services, product recommendations, and business information, being absent from AI-generated answers is functionally equivalent to not appearing on the first page of traditional search results—or not appearing at all. The study frames this as a lesson in generative engine optimisation (GEO), the practice of structuring content so AI platforms are more likely to cite a business. Unlike traditional SEO, which focuses on ranking in a list of links, GEO requires businesses to consider how AI evaluates source authority, content structure, and topical relevance when crafting natural-language answers.
For Australian businesses, the findings suggest that existing digital marketing strategies may not translate to visibility on AI platforms. A business with strong local search rankings can still be absent from AI answers if its content lacks the signals generative platforms prioritize. The study draws a direct line between low authority and low AI citation rates, indicating that businesses investing in authority-building—through structured content, credible backlinks, and clear topical expertise—are better positioned to appear in AI responses.
The study was conducted as a structured audit of AI platform behavior across queries representing typical Australian consumer questions. The four platforms were selected for their growing share of consumer-facing AI search activity in Australia. The findings contribute to evidence around AI search, where the rules governing business inclusion differ materially from traditional organic search. Snowball Productions is an Australian digital marketing agency specializing in search visibility and generative engine optimisation. More information is available at Snowball Productions.
