Businesses risk losing customers as AI reshapes digital discovery

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Read History Go to My Account Log Out Enhanced by Google Technology Businesses risk losing customers as AI reshapes digital discovery Businesses that fail to establish credible and consistent digital identities risk losing potential customers as Artificial Intelligence (AI) increasingly changes

Listen to this article Share Businesses that fail to establish credible and consistent digital identities risk losing potential customers as Artificial Intelligence (AI) increasingly changes how consumers discover, evaluate and select products and services.

The growing use of AI-powered assistants to recommend service providers, compare businesses and answer consumer questions is changing the competitive dynamics of digital markets, placing greater importance on how organisations present and structure information about their operations online.

Unlike traditional search engines, which largely present users with lists of websites and links, generative AI systems synthesise information from multiple sources to provide direct answers and recommendations. This means businesses with incomplete, inconsistent or poorly structured digital footprints risk being overlooked when potential customers seek recommendations.

Saidat Sododo, a Lagos-based digital strategist and creative lead at Sodus Media, said organisations could no longer depend solely on having websites or maintaining social media accounts to remain competitive in an increasingly AI-driven digital economy.

According to her, businesses must deliberately manage their digital identities to ensure that search engines and AI systems can accurately identify their operations, understand their expertise and establish their credibility.

“The issue facing many talented individuals and growing companies is rarely a lack of quality. It is the absence of an intentionally architected digital identity that communicates that quality effectively,” Sododo said.

The shift has significant implications for startups, professional service providers, consultants and established companies competing for customers in an increasingly crowded digital marketplace.

As consumers increasingly turn to AI tools for information and recommendations, a company’s online reputation could influence whether it makes the shortlist of potential service providers before prospective customers even visit its website or initiate contact.

Sododo explained that digital identity encompasses the information, professional records, published content and public references that collectively define how individuals and organisations are perceived online.

For businesses, these include corporate websites, business listings, service descriptions, customer reviews, media coverage and other verifiable operational records.

When these sources contain conflicting information or fail to communicate what a company offers, both potential customers and digital discovery systems may struggle to establish an accurate understanding of the organisation.

This creates a growing need for businesses to move beyond conventional branding, which has traditionally focused heavily on logos, visual identity and social media visibility, towards building verifiable digital authority.

The development has also increased attention on two emerging optimisation strategies: Answer Engine Optimisation (AEO) and Generative Engine Optimisation (GEO).

AEO focuses on structuring online content so that answer-based search systems can easily identify and retrieve relevant information, while GEO seeks to improve how brands and their expertise are understood, represented and cited by generative AI platforms.

Unlike traditional search engine optimisation, which often places considerable emphasis on keywords and website rankings, AI visibility depends more broadly on the availability of credible information, contextual clarity, structured content and consistent references across digital platforms.

However, Sododo noted that no optimisation strategy could guarantee that an AI system would recommend a particular business.

She said organisations could improve their discoverability by maintaining authoritative websites, documenting their expertise, publishing useful industry information and ensuring that their names, services and contact details remain consistent across external platforms.

The challenge is particularly relevant to startups and growing businesses, for which digital platforms increasingly serve as the first point of contact with prospective customers, investors and business partners.

An incomplete online presence can undermine confidence before a company has an opportunity to demonstrate the quality of its products or services.

Beyond corporate organisations, the changing discovery environment is also reshaping professional competitiveness. Individuals seeking employment, consultancy opportunities and investment partnerships increasingly need verifiable online records that communicate their experience, achievements and expertise.

Sododo, whose professional background spans television production, web engineering and user experience design, said connecting media communication with technical web engineering was becoming essential to building a credible and discoverable digital presence.

“Having valuable expertise is only half the equation. The other half is ensuring that expertise is structured so both human audiences and search algorithms can find, verify and understand it,” she said.

For businesses, the implications extend beyond visibility to customer acquisition, market positioning and long-term competitiveness.

As AI-powered discovery develops, companies may increasingly compete not only on the quality and pricing of their offerings but also on whether reliable digital information exists to establish their relevance when potential customers seek recommendations.

This makes digital identity an increasingly important business asset, particularly as the mechanisms through which consumers find and evaluate companies continue to evolve.

For organisations that have yet to prioritise their digital footprints, the emerging risk is that they may remain operationally competitive but become increasingly difficult to discover in the digital channels shaping consumer decisions.

Royal Ibeh is a senior journalist with years of experience reporting on Nigeria’s technology and health sectors. She currently covers the Technology and Health beats for BusinessDay newspaper, where she writes in-depth stories on digital innovation, telecom infrastructure, healthcare systems, and public health policies.