Australian businesses face digital visibility risks from AI and social media reforms

Australian businesses are facing a dual challenge as digital landscapes shift due to new government regulations and the rise of artificial intelligence.

The Council of Small Business Organisations Australia (Cosboa) has expressed concerns regarding proposed government reforms to social media algorithms. While Cosboa supports the goal of improving online safety, CEO Skye Cappuccio warned that the reforms must not inadvertently harm small businesses. The organization emphasized that many small enterprises rely on social media algorithms for customer acquisition and visibility, and they are calling for genuine consultation to prevent blunt enforcement measures that could de-rank legitimate businesses.

Simultaneously, the integration of generative AI is fundamentally altering search engine visibility. In Australia, AI-generated search summaries have appeared in approximately 39 per cent of local search queries. This shift has contributed to a 34.5 per cent decrease in traditional click-through rates for organic search results, as search engines increasingly resolve queries directly on the results page. These technological changes are forcing enterprises to move away from traditional keyword-based SEO toward more complex, AI-driven digital strategies.