Is AI Bad for SEO Agencies or Their Biggest Advantage? With David Arato | Ep #882

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AI didn’t wipe out SEO; it just exposed who was phoning it in. While some agencies are panicking about AI “stealing their jobs” or racing to the bottom on price, the smart ones are quietly using it to get sharper, more profitable, and more strategic. Today’s featured guest has been in the SEO trenches for 15+ years and runs an agency producing millions of words of content every month.

He’ll break down his perspective on what’s actually happening right now, why generic AI content is worthless, how agencies should really be pricing in an AI world, and why this shift is an opportunity to move up-market instead of becoming a commodity. If you run an agency and don’t want to be replaced by a robot (or undercut by one), this conversation is for you.

David Arato is the founder of Lexicon Legal Content, producing millions of words of SEO content every month for law firms and law-firm marketing agencies across North America. He’s been in the SEO game for 15+ years and lived through the AI disruption firsthand.

• AI is only killing agencies that refuse to adapt

• The real problem isn’t AI

• Does the SEO vs AEO matter?

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AI Didn’t Kill SEO; It Killed Bad Agencies That Refused to Adapt

Probably every agency owner has wondered, “If AI can write content in 30 seconds… why would clients pay us?” over the past couple of years.

David had that exact thought in December 2022 when ChatGPT dropped. He literally told his wife he might need to go back to practicing law.

Fast forward to now and AI has been nothing but good for business.

And that’s the part most agency owners are missing.

The Real Problem Isn’t AI, It’s Commoditization

According to David, AI removed the barrier to entry for creating generic content. And once everyone can do something, it has no value.

That’s why blog posts written “for SEO” are dying. Not because content doesn’t work, but because copy-paste AI garbage doesn’t.

Google doesn’t care how content is created. They care whether it’s helpful, credible, and demonstrates real experience. Especially in “your money, your life” industries like legal, finance, and healthcare.

In other words, if your agency’s value prop was “we write blog posts,” AI exposed how fragile that model was.

Why Smart Agencies Are Actually Winning With AI

Here’s what changed for David’s agency, and what should change for yours:

Before AI:

• Writers spent hours on first drafts

• Margins were capped by human time

• Strategy was an afterthought

After AI:

• AI handles the grunt work

• Humans focus on strategy, voice, expertise, and data

• Content is faster, cheaper to produce, and better

That shift matters.

Because clients aren’t paying for words. They’re paying for outcomes.

“SEO vs AI Search” Is the Wrong Debate

A lot of agencies are stuck arguing:

• SEO vs AEO

• SEO vs GEO

• SEO vs whatever acronym Twitter invents next week

Here’s the reality: Search is becoming hybrid.

This means that, yes, AI overviews now dominate the top of Google. But organic results still matter. Paid is still there. It’s all blending together.

Which means agencies need to stop selling “SEO deliverables” and start selling search visibility strategy.

Same skill set. Bigger mindset.

The Pricing Wake-Up Call

If you own an agency, you know that clients are asking for more content at lower costs.

That’s not a threat. It’s a forcing function.

The agencies that survive will:

• Increase volume without killing margins

• Productize strategy

• Stop selling fulfillment as their core offer

The ones that won’t?

They’ll stay stuck in fulfillment, stressed about margins, and quietly resentful of AI.

The Real Differentiator Going Forward

Everyone has access to the same AI tools. So could clients get the same results by themselves? Not likely

What they don’t have: Your data. Your experience. Your insights from years in the trenches

That’s the leverage.

And it’s why authenticity, real expertise, and human connection are becoming premium assets, whether in content, video, or sales.

AI can’t shake a hand, AI can’t read the room, AI can’t replace leadership. That’s your unique value proposition.

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