Answer engine optimization is the practice of structuring content so that AI systems such as ChatGPT, Perplexity, and Google AI Overviews cite it when answering questions. It differs from traditional SEO because the goal is being referenced in a generated answer, not ranking a blue link.
Your buyers are increasingly asking an AI who they should hire before they ever run a search. If the AI does not know you exist, you are not on the shortlist, and you will never see the query that excluded you. AEO is about being the source the answer is built from, which is a different game from ranking, and one where a smaller firm can still compete.
Example:
A buyer asks an AI which agency to consider for their situation. Whether you appear in that answer depends on whether the AI has learned you exist, not on your page-one ranking.
How is AEO different from SEO?
SEO aims to rank a link that a person clicks. AEO aims to be cited as a source inside an AI-generated answer, which may never produce a click at all.
Why does AEO matter for smaller companies?
AI citation depends heavily on being mentioned across the web rather than on domain authority alone, which gives smaller firms a route to visibility that traditional ranking does not.