AI Search Engines Are Using Your Content. Who’s Giving Credit?

This week on Niche Pursuits News, hosts Jared Bauman and Thomas Smith cover a packed lineup of topics, from a fascinating study on AI search engines to a major lawsuit against Google, and fresh insights on the online business marketplace.

Plus, they share updates on their own side hustles and dive into this week's weird niche discoveries. Let's break it down.

Watch the Full Episode

AI Search Study: Who’s Citing Sources?

The episode kicks off with a discussion about a new study by Xfunnel.ai, which analyzed 40,000 AI-generated responses containing 250,000 citations across major AI search engines. The study explored how different platforms handle citations and what this means for content creators.

Key takeaways from the study:

• Perplexity AI led the pack, citing an average of 6.61 sources per response.
• Google Gemini followed closely at 6.1 citations per response.
• ChatGPT lagged behind, with only 2.62 citations per response (in standard mode, without search features activated).
• Earned content (editorial and independent blogs) still holds weight, with AI-generated responses increasingly pulling from user-generated content (UGC) like Reddit, Medium, and review sites.
• Citations vary depending on the buyer journey stage:
  • Top-of-the-funnel queries favor editorial content.
  • Mid-funnel queries lean toward UGC and review sites.
  • Bottom-of-the-funnel queries cite brand websites and direct competitors.

This data suggests that content creators need to rethink their SEO strategies for AI-driven search. Rather than just optimizing for Google’s traditional algorithm, understanding how AI search engines pull and cite content could shape the future of digital marketing.

Google vs. Chegg: A Lawsuit Unlike the Others

The next major topic is the lawsuit filed by Chegg against Google, alleging that the search giant’s AI-generated answers unfairly divert traffic away from content creators. Unlike previous AI lawsuits that have focused on copyright issues, this case takes an antitrust angle, arguing that Google’s monopoly in search allows it to profit from publishers’ content without fair compensation.

Key points from the lawsuit:

• Chegg claims Google’s AI overviews replace the need for users to click through to content providers, effectively reducing traffic and revenue.
• The suit alleges Google forces publishers to supply content for free in exchange for search index inclusion.
• Google is accused of anti-competitive behavior, leveraging its dominance in search to crowd out content creators.
• Chegg itself has integrated AI tools, using Meta’s Llama models and working with OpenAI, indicating this isn’t an anti-AI lawsuit—it’s specifically about Google’s dominance.

This lawsuit could have wide-reaching implications for content creators. If Chegg’s arguments gain traction, we may see regulatory changes that alter how Google presents AI-generated search results.

Flippa and Ezoic Event: Market Trends and What’s Selling

Jared shares insights from an in-person event hosted by Flippa and Ezoic, which provided fresh data on digital business deal flow. The key takeaway: deal volume is up across the board.

• App sales have risen by 9%.
• E-commerce sales have grown 15%.
• SaaS sales are up 21%.
• Agency sales have skyrocketed by 46%.
• YouTube channel sales are up a staggering 170%!

Additionally, keyword searches on Flippa show where buyer interest is strongest:

• Shopify tops the list, showing strong demand for e-commerce businesses.
• YouTube is the second most searched category, reinforcing the rise in video content as a valuable digital asset.
• AI-related businesses rank high, reflecting growing interest in AI-powered tools and platforms.
• Affiliate sites, despite recent Google updates, remain a popular search term for potential buyers.

The key takeaway? If you're building digital assets with the goal of selling, focusing on YouTube, SaaS, or AI-related businesses may yield the highest return.

Side Hustle Updates: Email List Growth and AI Newsletters

Jared and Thomas give updates on their ongoing projects, including:

• Scaling an HCU-hit content site via email marketing – They experimented with aggressive list-building via Facebook ads, but rapid growth may have impacted email deliverability.
• Profitable Facebook ad arbitrage – They discovered a highly effective ad strategy driving traffic at a profit, separate from email list-building efforts.
• Thomas rebrands his newsletter to focus on AI – Pivoting from “No Frills Influencer” to “AI in Real Life,” he moved the newsletter to Beehive for better audience engagement and monetization through built-in ads.

Weird Niches: Typing Tests and LEGO Collectibles

This week’s weird niche finds are:

• TypingTest.com – A 25-year-old site that recently sold for $2.5 million, generating $550,000 a year in ad revenue. The site offers free typing tests, monetized through aggressive ad placements.
• BrickFact.com – A site dedicated to tracking and selling rare LEGO sets. With a growing database and a dedicated app, this site caters to LEGO enthusiasts and collectors looking for hard-to-find pieces.

Final Thoughts

This week’s episode highlighted the rapidly changing digital landscape, from AI search trends to new business opportunities in the online marketplace. The key takeaways:

• AI search is evolving, and content creators need to adapt their strategies.
• Google’s legal battles could reshape the way AI-generated search results work.
• YouTube and AI-based businesses are booming in the digital asset marketplace.
• Scaling an email list requires a balance between rapid growth and deliverability.
• Even simple, niche websites can turn into multi-million dollar businesses.

For digital entrepreneurs, these insights serve as a roadmap for staying ahead in the ever-changing world of online business.

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