How AI is Changing the Way Companies Research Communities and Regions
How AI is Changing the Way Companies Research Communities and Regions
Artificial intelligence is rapidly reshaping how companies and site selectors research communities, evaluate regions, and develop initial location shortlists. Though many economic developers are engaged with closed source AI, a growing number are using Large Language Models (LLMs) such as ChatGPT, Claude, and Copilot.
“From my perspective, AI is sort of rapidly becoming the new front door for economic development research,” said Michael Etheredge, Vice President of Product Development at QuestionFuel, a platform focused on AI visibility and answer engine optimization.
According to Etheredge, 65% of searches are done through a chatbot and many searches are shifting toward a zero-click environment in which answers are delivered directly rather than through traditional website visits.
For economic development organizations (EDOs), this evolution is changing how communities are discovered, evaluated, and ultimately considered for investment. As AI increasingly serves as the first point of contact between businesses and communities, digital visibility may become as important as traditional marketing and outreach efforts.
“If they (LLMs) can’t easily find, understand, and trust that region’s information about that community, they may never make the initial shortlist,” Etheredge said.
One of the key methods of tailoring content to AI models that are searching through millions of sources of data is what Etheredge calls “thought leadership,” producing educational content that informs audiences while naturally guiding them toward a deeper understanding of a region’s competitive advantages. This educational content should be centered around core economic development themes such as workforce assets, infrastructure, transportation, and quality of life.
“Organizations that publish educational content tend to become more trusted sources in AI-generated answers,” said Etheredge. “Communities are now competing not only for Google ranking, but also for AI recommendations, and economic development organizations that adapt early can gain visibility with a very reasonable budget.”
As AI-powered search continues to evolve, two emerging disciplines are becoming increasingly important: Answer Engine Optimization (AEO) and Generative Engine Optimization (GEO). For years, much of economic development marketing has focused on Search Engine Optimization (SEO), which relies on keywords and content structure to increase visibility and ranking. However, AEO and GEO are rapidly emerging as critical components of digital marketing strategy.
GEO shares similarities with SEO, but its goal is different. Rather than simply helping users find content, GEO seeks to position a community's information as part of the AI-generated answer itself. AEO focuses on organizing content so AI systems can quickly identify, interpret, and accurately present information to users. This means an EDO’s content needs to go beyond its own website, establishing a trusted presence across multiple platforms.
“AI often favors entities that have a strong digital footprint across credible websites, rather than just a website alone,” Etheredge said.
Given the rapid pace of technological change, how do economic developers stay current with AI's evolution? Etheredge emphasized that the key is focusing on content that directly answers the questions site selectors and business leaders are asking. Organizations that consistently provide clear, authoritative answers are more likely to remain visible and trusted regardless of how AI technologies evolve.
To support this effort, QuestionFuel works with clients to develop structured content strategies built around content pillars. QuestionFuel creates content maps for clients that identify priority topics and guide the development of materials designed to provide concise, authoritative answers to the questions most frequently asked by businesses and site selectors.