June 5, 2026

The Impact of AI on Business and IT Services

Editor’s note: This is AI Impact, a weekly newsletter by Newsweek that explores how organizations are tapping into the potential of artificial intelligence. Subscribe for more insights.

Signals from the Frontlines of AI Adoption

AI Search Is Transforming SEO Practices

By Adam Mills

AI search capabilities are reshaping how professional services firms approach visibility. Traditionally, these firms focused on optimizing Google rankings. However, AI search now places importance on factors that are more challenging to control.

Scribewise, a thought leadership marketing and generative engine optimization firm, surveyed 205 U.S.-based professional services marketers and leaders for its “GEO Readiness Report.” Ninety-five percent of respondents said it is important or very important for their organization’s content to show up in AI search.

John Miller, founder and president of Scribewise, emphasized that businesses might miss out on potential clients without realizing it. He explained that AI search is becoming a primary method for finding IT firms. Those that adapt quickly will gain a competitive edge, while others may remain unaware until it’s too late.

The shift from traditional to AI-driven search is particularly evident in the nature of inquiries. Miller noted that AI search resembles a conversation, with users asking multiple questions to resolve a problem, unlike single-query traditional searches.

Miller highlighted that in professional services, searches for specific advisors or partners differ significantly from simpler consumer searches. The Scribewise survey indicates that AI search is already creating business opportunities. Ninety-seven percent of respondents had captured leads through AI tools like ChatGPT and Perplexity, with a significant number capturing multiple leads.

The adoption of AI search represents a tangible change in how clients are discovered, Miller asserted. The significant shift in search mechanisms shows that traditional search success metrics may not apply to AI platforms.

Many marketers expressed concerns about the transition. Nearly half found AI optimization “obtuse” compared to traditional methods, while others worried that established success metrics might lose relevance.

Miller conveyed that the shift requires firms to move beyond relying solely on a website to pitch services. The importance of public relations and third-party credibility in AI-generated results is increasing.

The change involves redefining visibility metrics, focusing on appearing in AI answers when potential clients ask relevant questions, rather than achieving top search engine rankings.

Core Intelligence: IT Services in a Challenging Landscape

Enterprise technology budgets are on the rise, but the distribution of funds isn’t uniform across IT services. This shift characterizes the AI-driven services sector. While technology budgets expand, much of the increase channels towards infrastructure, data centers, and AI systems, straining legacy service segments.

“The only thing you can say for certainty is that if you’re standing still, you’re pretty much dead,” Noshir Kaka, senior partner at McKinsey & Company, said during Newsweek’s recent “AI Impact Forum” webinar.

Kaka emphasized the significance of adapting to the evolving tech landscape. McKinsey’s research revealed that while 72% of surveyed executives are boosting technology budgets, the benefits aren’t guaranteed to reach all vendors or projects.

The drive for more AI investment often necessitates reallocating funds from older contracts or consolidating vendors. This financial pressure adds to the evolving expectations of AI clients, who now anticipate results that significantly impact business processes.

Kaka provided an example from pharmaceutical manufacturing. Companies deploying AI to prevent defects rather than only documenting issues represent leverage for transformative workflow redesigns.

Technology providers must discern the targeted AI use case to stay relevant. Clients require substantial improvements over merely repackaging existing services.

The increasing overlap of markets presents a challenge. New entrants leverage AI to enhance traditional systems and encroach on established service areas.

Sustainable success in this shifting landscape involves rethinking existing strategies and aggressively pursuing new market opportunities.

Upcoming Webinars

AI in Finance: From Individual Adoption to Enterprise Transformation
Discuss how agentic AI may redefine financial services with Kevin Buehler and Dr. Ranjit Tinaikar on June 18 at 9:30 a.m. Eastern. Register for free.

Prompt Injection

“How quickly I’ve gotten used to saying ‘Let me ask my AI agent.’ It’s become a crucial element in developing drafts, fact-checking strategies, or even summarizing detailed reports.”

If you have insights about AI to share, email us at [email protected]

Run Log: AI Use Case of the Week

Slite developed Super MCP, a tool that enhances AI’s ability to access and compile contextual company information from various tools. The system significantly improved the accuracy and speed of AI responses.

Context Window

  • A Hoover Institution paper addresses the need for AI arms control between leading nations.
  • A House AI bill proposes oversight and safety measures for top model developers.
  • AI is a primary reason for workforce reductions across several major tech companies.

Transfer Protocol: Tracking Executive Moves

Bartley Richardson joined CrowdStrike, and Graham Sheldon took the role of chief product officer at Docusign. Noteworthy appointments demonstrate a strategic emphasis on AI capabilities.

Magic Moment

“Using AI to teach literacy to both children and adults proved fun. The approach involved blending practical and creative uses of AI to engage and educate.”

Email your AI encounters to [email protected]

TAGS: