Why AI Could Double PR Budgets by 2027

For decades, PR has competed with advertising and digital marketing for budget. But according to Gartner, that balance is shifting dramatically.

The research firm predicts that by 2027, the widespread adoption of AI platforms such as ChatGPT and Perplexity as alternatives to traditional search engines will drive a twofold increase in PR and earned media investment.^1

For agencies and communications professionals, it signals a fundamental change in how organisations build visibility, trust and influence in an AI-driven world.

AI Is Changing How People Discover Brands

Consumer search behaviour is evolving rapidly.

Gartner reports that between the first half of 2024 and the first half of 2025, ChatGPT traffic increased by 608% and Perplexity traffic by 262%, while Google and Bing recorded slight declines.^1

This trend aligns with Gartner’s broader forecast that traditional search engine volume will decline by 25% as users increasingly turn to AI assistants and answer engines for information.^2

Unlike traditional search engines, AI platforms do not simply display links. They generate answers, selecting and citing sources they consider trustworthy and authoritative.

For brands, that raises an important question:

What information is AI using to tell your story?

Earned Media Is Becoming an AI Visibility Asset

One of the most significant findings from Gartner’s research is that AI platforms overwhelmingly rely on non-paid content.

According to Gartner, more than 95% of links referenced in AI-generated answers come from unpaid sources, with 27% originating directly from earned media coverage.^1

More recent research supports this finding. Muck Rack’s 2026 analysis of more than 25 million AI citations found that 84% of all cited content came from earned media, while paid and advertorial content accounted for just 0.3% of citations.^3

Similarly, 5WPR’s State of AI Search 2026 report identified earned media as the strongest driver of AI visibility across major answer engines, outperforming both paid media and brand-owned content.^4

In other words, the media coverage organisations earn today is increasingly determining whether they appear in the answers AI platforms provide tomorrow.

PR Is No Longer Just About Reputation

Historically, organisations invested in PR to build trust, reputation and stakeholder engagement.

Today, earned media is also becoming a discoverability strategy.

When users ask AI platforms questions like:

  • “Who are the leading sustainability companies in Australia?”
  • “Which organisations are driving innovation in healthcare?”
  • “What is Company X’s position on climate action?”

The answers are often informed by news coverage, independent commentary and authoritative third-party sources.

In fact, Gartner found that when users ask questions requiring recent information, almost half of AI citations come directly from news media coverage.^1

A recent Forbes analysis reached a similar conclusion, reporting that ChatGPT derives approximately 63% of its answers from traditional media sources, making earned coverage increasingly influential in shaping brand narratives within AI systems.^5

Budgets Are Already Shifting

This change appears to be influencing communications investment decisions.

Gartner’s survey of Chief Communications Officers found that PR was the communications function most likely to receive increased investment, with 36% expecting budget growth.^1

At the same time, marketers are facing rising paid media costs, declining click-through rates and increased competition across digital advertising channels. Research from NP Digital found that many organisations are reallocating spend towards channels that build long-term authority, trust and defensible visibility rather than relying solely on performance advertising.^6

Gartner has gone even further, recommending organisations begin reallocating investment from paid channels towards earned media and corporate reputation programmes as AI search continues to grow.^7

The Rise of Answer Engine Optimisation (AEO)

Just as SEO became essential during the search engine era, a new discipline is emerging: Answer Engine Optimisation (AEO).

Unlike traditional SEO, which aims to improve webpage rankings, AEO focuses on increasing visibility within AI-generated responses.

Success depends heavily on factors such as:

  • Earned media coverage
  • Third-party validation
  • Source authority
  • Expert commentary
  • Consistent brand narratives

Research from 5WPR found that brands maintaining active earned media programmes consistently achieved greater visibility across ChatGPT, Gemini, Claude and Perplexity than those relying primarily on owned content or paid media.^4

As AI increasingly determines which brands are discovered and recommended, these credibility signals are becoming critical business assets.

What This Means for PR Agencies

For PR agencies, this represents one of the most significant opportunities the industry has seen in years.

Clients are increasingly moving beyond asking:

“Can you get us media coverage?”

to asking:

“Can you help ensure our organisation is recognised, referenced and trusted by AI systems?”

Meeting that demand requires capabilities that extend beyond traditional media relations, including:

  • Thought leadership development
  • Executive profiling
  • Reputation management
  • Industry authority building
  • AI visibility monitoring
  • Competitor benchmarking
  • Answer Engine Optimisation strategies

The role of PR is expanding from communications support function to strategic visibility advisor.

The Bottom Line

Gartner’s prediction that PR budgets could double by 2027 reflects a broader structural shift in how organisations build influence.

The evidence is mounting:

  • More than 95% of AI citations come from unpaid sources.^1
  • Earned media accounts for approximately 84% of AI citations across major AI platforms.^3
  • Traditional search is forecast to decline as AI becomes a primary discovery tool.^2
  • AI systems increasingly rely on trusted editorial content to generate answers.^4,5
  • Communications leaders are already increasing investment in PR ahead of other communications disciplines.^1

As AI becomes the gateway to information, organisations that are visible in credible media, recognised as industry authorities and backed by trusted third-party voices will have a significant competitive advantage.

And that places public relations squarely at the centre of the next era of communications.

References

  1. Gartner, Communications Predictions 2025-2027, cited in Communicate Online (2026) and Gartner Communications Research.
  2. The 2026 Search and Marketing Landscape: Navigating the Shift to AI-Driven Strategies, summarising Gartner’s forecast of a 25% decline in traditional search volume by 2026. [kingy.ai]
  3. Muck Rack, What Is AI Reading? (May 2026). Analysis of 25 million AI citations across ChatGPT, Claude and Gemini. [muckrack.com], [machinerelations.ai]
  4. 5WPR, State of AI Search 2026. Findings on AI citation patterns and earned media visibility. [5wpr.com]
  5. Gary Drenik, AI Is Telling Every Brand’s Story. Here’s How Companies Are Shaping It, Forbes, 14 July 2026. [forbes.com]
  6. NP Digital, How Marketers are Spending Their Money in 2026. Analysis of marketing budget reallocation trends. [neilpatel.com]
  7. Gartner communications forecast commentary published by Communicate Online and TK Associates, discussing the movement of investment from paid channels to earned media and AI visibility strategies. [communicateonline.me], [tk-associates.com]

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