Accounting Firms Must Adapt to New Reality of AI-Powered Referrals
For 20 years, business development at accounting firms followed a predictable pattern. Referrals from existing clients were the primary source of new leads, and websites served as supporting collateral. Google search results provided the final layer of visibility for any remaining prospects. However, this playbook is quietly being rewritten.
A growing share of potential clients are now turning to AI-powered assistants like ChatGPT, Perplexity, and Gemini to find the best accounting firms in their area. When a prospect asks one of these models which CPA firm they should use for tax services, the model returns a shortlist of three or four names, and if your firm isn't on that list, you're unlikely to get the opportunity.
The key to competing in this new landscape is understanding how AI-powered assistants process queries. This involves two main disciplines: answer engine optimization (AEO) and generative engine optimization (GEO). AEO focuses on becoming the recommended answer for a specific query, while GEO encompasses the broader strategy of appearing within generated results.
One of the challenges in this new world is measuring the effectiveness of these AI-powered referrals. Traditional analytics tools often fail to capture the true impact of these channels, as prospects may directly visit the recommended firm's website without clicking through from a search engine result.
To overcome this challenge, firms should ask every lead how they found them and record their response in their own words. This simple step can help uncover the true source of new business and identify areas for improvement. Additionally, firms should run prompts used by prospects to gauge which firms are being recommended and cited as sources.
By understanding the mechanics behind AI-powered referrals, accounting firms can adapt their strategies to remain competitive in this evolving landscape. This requires a focus on answer engine optimization, generative engine optimization, and authentic participation in online communities where clients seek advice.