The Rise of the Answer Economy: What It Means for Business and How to Prepare

FROM SEARCH TO CERTAINTY

In May 2024, Google launched its AI Overviews feature, which received mixed reviews. One thing was clear: search was no longer just about finding content; it was about getting answers. At the same time, generative AI platforms like ChatGPT and Perplexity AI quickly became the preferred tools for students, professionals, and consumers in a variety of situations, offering curated, personalised answers rather than just a list of links.

This shift is important because it goes beyond changes in search behaviours; it concerns what many now call the Answer Economy. The Answer Economy is characterised by instant access to information, AI-driven problem-solving, and AI-supported decision-making. For organisations willing to adapt, the potential for new business models and opportunities has never been higher.

The Answer Economy is redefining prominence, trust, and differentiation.

UNDERSTANDING THE ANSWER ECONOMY

Over the past several years, the number of industries, sectors, and uses of digital services has grown significantly, driven by the digitalisation of knowledge, skills, behaviours, products, and services. The Answer Economy describes the digital landscape where economic value increasingly depends on those who can deliver relevant, reliable, timely, and contextual answers rather than just content or products. In this context, being relevant through first-page rankings on Google is less important, while providing the answer a consumer needs via voice assistants, chatbots, and AI-generated summaries is much more significant.

The Answer Economy exists independently of any specific approach, platform, or industry. It includes generative AI models, large language systems, vertical search engines, voice interfaces, and expert networks. Today, whether Lululemon’s ReChair provides customised compliance answers through a legaltech tool, Amazon’s AI-enabled medical diagnostics in their health services, or a retailer’s use of chatbots, it increasingly focuses on immediacy, credibility, and personalised solutions.

The changing behaviour can be attributed to a combination of:

  1. Information Overload – with the vast amount of online content and review sites like Yelp or TripAdvisor, search results are no longer helpful, and searches become overwhelming (Haider, 2022).
  2. AI Maturity – the development of large language models, context-aware generative AI, and the ability to deliver conversationally relevant, summarised responses at scale that have nothing to do with search (OpenAI, 2023).
  1. Consumer Behaviour Changes – frictionless matters more to consumers: quick and easy will guide their decisions in their buying, learning, or deciding behaviour (Gartner, 2024); and
  1. Platform Dynamics – Platform owners have designed platforms to be more focused on providing answers rather than just results, which affects their visibility and discoverability.

Hence, the Answer Economy represents a shift from producing a large volume of content to understanding the context and providing relevant answers.

TECHNOLOGICAL LENS: FROM RETRIEVAL TO RESOLUTION

Traditional search engines operate by indexing billions of pages and producing ranked lists of results. In the Answer Economy, the process is not based on indexes but on resolution. AI is adopted to understand intent, extract relevant meaning from large datasets, and generate a confident answer. It is often done without pinpointing the source of the answer.

This has two important implications.

Content may become somewhat detached from its source—when a Large Language Model (LLM) generates an answer, the visibility of original publishers and experts can be overlooked entirely. However, while this could harm traditional traffic models based on SEO, backlinks, and content marketing (Kleinberg & Mishra, 2023), SEO remains a vital part of the Answer Economy.

The other key point is that the authority of answers depends on the training data and model design, not on brand reputation. A startup with a sophisticated vertical AI model trained on niche legal or medical data could outrank established institutions in perceived credibility, not necessarily because it is more trustworthy, but simply because it responds more quickly.

This increases the visibility and accessibility of some expertise; however, it also raises concerns about misinformation, bias, and the erosion of expertise authority.

BUSINESS LENS: WHAT NEEDS TO CHANGE

For businesses, the emergence of an Answer Economy impacts three key areas.

THE EVOLUTION OF SEO AND CONTENT MARKETING MODELS

As LLMs answer specific questions, it might be tempting to dismiss SEO as irrelevant or outdated. SEO remains just as important as ever, but the focus has shifted from simply ranking well in search results to shaping how AI models perceive, analyse, and transcribe information.

LLMs like GPT-4 and Google’s Gemini do not fabricate facts – they source facts from well-organised, credible, evidence-based references. In other words, both humans and machines consult reputable and trustworthy content (Kleinberg & Mishra, 2023).

THREE STRUCTURAL CHANGES

  1. Structure is Strategic

Schema, metadata, and structure are now vital to how AI assesses relevance and rankings (and ultimately results). Content must be understandable by both human readers and algorithms.

  1. E-E-A-T is Still Important.

Experience, expertise, authoritativeness, and trustworthiness continue to be the foundations of AI outputs and Google results. Unique content from experts is most likely to be trusted and cited (Google Search Central, 2023).

  1. SEO Supports AI Visibility

SEO supports AI rather than competing with it, and improves models, citation potential, and reading depth when users look beyond the answer.

Basically, AI needs answers, but it also depends on trustworthy sources: users rely on AIs to give correct information. Companies that optimise content for both human understanding and machine readability will lead in the Answer Economy.

TRUST AND AUTHORITY

As users stop verifying sources and begin trusting outputs, the credibility of brands within AI ecosystems needs to be reassessed. This requires becoming part of the data used to train, inform, and refine these systems. For example, Google’s AI Overviews highlight sources with high E-E-A-T (Experience, Expertise, Authority, and Trust); however, these sources are still separate from an AI output.

Companies need to move beyond brand recognition to brand embedment, which involves being cited, referenced, or encoded into the AI knowledge systems’ knowledge base. This may involve partnership and licensing deals with vertical AI, as well as creative opportunities to contribute to public or open data sources in strategic ways.

CULTURAL AND ETHICAL PERSPECTIVES: CONVENIENCE COSTS

The speed and accuracy of the Answer Economy also come with a higher cost in cultural and ethical compromises.

  1. A Crude Reduction of Complexity

An answer makes understanding easier. The problem is that not all questions have simple answers. When AI produces conclusions through nuanced models that effectively turn complexity into simplicity, we risk reducing complex issues to easy insights – and that can be dangerous in any field of knowledge, especially those that impact humans, such as mental health, legal advice, or even the more interpretative aspects of history.

  1. Loss of Source Recognition

What is the purpose of the Answer Economy when it commodifies insight for users who stop engaging with the source? That source could be a journalist, a scholar, or a small business. The landscape of the Answer Economy might commodify insights at the expense of the ecosystem that creates them. As Metz and Roose (2023) pointed out, “AI does not just use the internet – it devours it.

  1. Bias, Hallucination

AI-generated answers are only as reliable as their training data and the learnings developed by the algorithms from that dataset. Just like users, businesses need to consider not only accuracy but also oversee the models that represent them. However, users often treat these outputs as absolute, which creates a false sense of certainty, especially when AI provides incorrect answers with confidence and assertiveness.

STRATEGIC IMPLICATIONS: ONBOARDING FOR THE ANSWER ECONOMY

For organisations to succeed in the Answer Economy, they will need to shift from creating content to curating and licencing knowledge. This requires strategic investment in the following areas:

KNOWLEDGE ARCHITECTURE

Building and understanding all structured knowledge bases that AI can harvest and use effectively. AI might be able to read web content optimised for schema, but it will not be able to read internal tools used by your customer service reps, FAQs, etc.

CONVERSATIONAL INTERFACES

Investing in AI-enabled assistants that reflect your company’s voice and domain expertise. These assistants should not only answer questions but also understand ambiguity, escalate intelligently, and learn from user inputs.

AI PARTNERSHIP STRATEGY

Consider partnering with AI service providers to access or license data, which can help improve training datasets or customise their knowledge networks with domain-specific expertise. Just as a company’s SEO strategies adapt to Google’s algorithm, the landscape of the Answer Economy will grow alongside AI ecosystems.

DIGITAL TRUST MANAGEMENT

Create a system to manage trust across platforms by regularly checking the accuracy of AI-generated answers that mention your brand—and by monitoring how your business appears in real time through chatbots, search engines, and smart devices.

The Answer Economy is not just about how consumers seek information using various methods — it is also a new way for people to understand information. In this rapidly evolving landscape, information is not inherently powerful; it only becomes meaningful when communicated with clarity, context, and care.

For businesses, this presents a strategic and philosophical dilemma – is the business just providing information, or does the business help people understand what counts most?

Companies that respond early by codifying knowledge, offering trust, or providing human meaning where AI cannot will significantly influence the next chapter of the digital economy.


[1] Forrester. (2024). Marketing in the Era of Generative AI: New Challenges, New Playbooks. Forrester Research.

[2] Gartner. (2024). Future of Customer Experience: Answer Engines and the Death of Search. Gartner Insights Report.

[3] Haider, J. (2022). Information Overload in the Digital Age: Navigating Knowledge Scarcity in a Content-Rich World. Oxford University Press.

[4] Kleinberg, J., & Mishra, S. (2023). Authority without Attribution: How Generative AI Rewrites the Rules of Online Visibility. Stanford Digital Society Review, 12(3), 44–61.

[5] Metz, C., & Roose, K. (2023). The Internet Is Disappearing Into AI: The New York Times, December 15.

[6] OpenAI. (2023). GPT-4 Technical Report. OpenAI Research. https://openai.com/research/gpt-4