AEO & the law
Online marketing content is now valuable corporate infrastructure. Algorithmic Semantic Capital (ASC) is an asset that every B2C company needs to build through AEO tactics. Visibility means revenue, and a competitor’s displacement. Building ASC is a companywide commitment, and this report focuses on the lawyer’s role.
A brand’s website and social organs are the prime sources of data for AI bots. Once a narrative is set for a new product, the first phase of AEO is a narrow set of words aimed a functionality in one use case. Future phases move out to adjacent benefits, and AI then connects on its own.
Advertising Law: The truth matters. Company representatives will be increasingly liable for intentionally misleading statements. It will be assumed that a sophisticated corporate officer utterances are intended to influence AI.
Regulations: Regulators will adapt to AI, but the FTC, SEC and other agencies will regulate the effects of AI just like every other new medium of commerce.
Trademark Law: It is illegal to use another’s trademarked slogans in your schema
Valuation: Visibility in AI overviews has a significant economic value as it leads to revenue, and drives up competitors’ unit economics. ASC is the absolute value of these two effects.
Lawyer’s Playbook:
1) Entire corporate leadership team must formulate and execute the narrative. All communications including public utterances, must be on message.
2) Treat prompts and test results as Trade Secrets. Document meticulously.
3) Startup lawyers need to include records of AI overviews among the due diligence documentation to justify a valuation.
4) Marketing tactics trying pay for, or generate inauthentic market demand are illegal and ineffective.
5) Trademark applications and use must be tactically deliberated. Strategy can be given away if not careful.
6) Boards will have to monitor Algorithmic Semantic Capital as it means revenue and valuation. The CMO and CFO must link content infrastructure to revenue, and effects on competitors.
Good news lawyers: there will be plenty of HUMAN work around marketing. I am happy to advise on the legality and business sense of content strategy. I’ve focused on AEO for my own business for several months.