February 24, 2026

The PR Budget Book is Coming, and AI is Why

The short answer: Gartner predicts PR and earned media budgets will double by 2027, driven by the rise of AI-powered search and answer engines that prioritise credibility over paid visibility.

Why is PR becoming more important in the age of AI?

AI-powered answer engines like ChatGPT and Perplexity don't rank brands by ad spend. They recommend them based on credibility, and credibility is built through earned media.

AI search engines overwhelmingly favour earned, shared, and organic-owned content over paid content. A recent vendor study found that more than 95% of links cited in AI-generated answers are unpaid mentions or coverage, with 27% coming directly from earned media.

LEOPRD's own Reputation to Revenue report, which analysed 18 Australian companies across four major AI platforms, found strikingly similar results: over 60% of AI brand citations come from earned media and third-party signals such as editorial coverage, customer reviews, and industry awards. Not paid ads. Not social posts. Not even a beautifully optimised website.

The takeaway is simple: what others say about you matters three times more than what you say about yourself.

How fast is AI search growing compared to traditional search?

The shift is already underway. Between the first half of 2024 and 2025:

  • ChatGPT grew 608% year-over-year
  • Perplexity grew 262%
  • Google and Bing each slipped -1%

Traditional search isn't dead, but the direction of travel is clear. Brands and communications leaders who wait for the trend to fully mature will already be behind.

Are PR budgets already responding to this shift?

Yes. In late 2024, Gartner found that PR and earned media were already the top priority for budget increases among Chief Communications Officers (CCOs):

  • 36% of CCOs anticipated a PR budget rise in 2025
  • 34% planned increases for corporate brand
  • 26% for public website
  • 23% for external social media

For two decades, marketing budgets flowed toward paid channels because that's where attention lived. AI has changed the equation. Attention has moved, and so has the budget logic.

What is AEO and why does it require PR skills?

Answer Engine Optimisation (AEO), also known as LEO and GEO, is the practice of optimising content and brand presence to appear in AI-generated answers. Gartner is explicit that this is not simply SEO with a new name.

AEO requires communications-specific skills to balance stakeholder trust and platform requirements. That makes PR professionals uniquely positioned to deliver it. Building the kind of earned, third-party credibility that AI systems trust is exactly what PR has always done.

Can smaller brands compete in AI-generated search results?

Yes, and this is one of the most significant opportunities for challenger brands right now.

LEOPRD's report data showed that smaller brands can outperform far larger competitors in AI-generated responses with a focused earned media strategy. The playing field is more level than it looks, but only for those who move first.

FREQUENTLY ASKED QUESTIONS

What percentage of AI citations come from earned media? 

According to LEOPRD's Reputation to Revenue report, over 60% of AI brand citations come from earned media and third-party signals such as editorial coverage, reviews, and awards.

What is AEO (Answer Engine Optimisation)? 

AEO is the practice of optimising a brand's presence to be cited in AI-generated answers from platforms like ChatGPT, Perplexity, and Google's AI Overviews. It prioritises earned credibility over paid visibility.  Here at LEOPRD we call it LEO, as they are large language models trained on language.  

Why are PR budgets increasing? 

Gartner predicts PR and earned media budgets will double by 2027 as brands respond to the growth of AI-powered search, where credibility (not ad spend) determines visibility.

How quickly is AI search growing? 

ChatGPT grew 608% year-over-year between H1 2024 and H1 2025. Perplexity grew 262% in the same period. Traditional search engines Google and Bing each declined 1%.

The bottom line

The machine is already deciding who it trusts. For Australian brands, the question isn't whether to invest in earned media, it's whether they'll be ahead of the shift or catching up to it.

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