Analysis

Gartner Predicts PR Budgets Will Double by 2027, Driven by AI Search Trends

Gartner's 2026 predictions forecast PR budgets will double by 2027 as 94% of AI citations draw from earned media, not paid sources.

Jamie Taylor3 min read
Published
Listen to this article0:00 min
Share this article:
Gartner Predicts PR Budgets Will Double by 2027, Driven by AI Search Trends
Source: www.demandsage.com
This article contains affiliate links — marked with a blue dot. We may earn a small commission at no extra cost to you.

Gartner's 2026 predictions forecast a two-fold increase in PR and earned media budgets by 2027, driven by the mass adoption of AI answer engines that overwhelmingly favor non-paid sources when generating responses. According to the predictions, 94% of AI citations come from non-paid sources such as earned media, and AI search traffic converts 4.4 times better than traditional search, presenting a compelling financial argument for communications leaders to rethink where they allocate spending.

The core logic behind Gartner's forecast centers on a fundamental shift in how users encounter brands. As AI-powered answer engines replace conventional search, the signals these systems prioritize, reputable news sources, authoritative commentary, high-trust owned content, expert citations, and recency, align far more closely with PR disciplines than with paid media or traditional SEO. Gartner describes SEO as "only one small input among dozens of signals," and frames the emerging disciplines of generative engine optimization (GEO) and answer engine optimization (AEO) as "inherently communications disciplines, not technical ones."

PR consultant Stuart Bruce, analyzing the predictions on his site, argued that AI systems have effectively become reputation intermediaries. "AI tools are now de-facto intermediaries," Bruce wrote. "They mediate reputation in the same way journalists once did. Treating AI as a stakeholder forces CCOs to redesign strategy around influence, authority, trust and recency — all PR strengths."

Gartner's accompanying recommendations for 2026 communications strategies are direct: audit the AI answer engines used by target stakeholder groups, reallocate at least some spending from paid media toward PR and earned media coverage, build a proactive earned media function capable of meeting the recency demands of AI search engines, particularly for crisis management and organizational change like mergers and acquisitions, and establish new measurement and benchmarking protocols while upskilling teams on how AI search engines source and evaluate content.

AI-generated illustration
AI-generated illustration

The predictions extend well beyond the 2027 budget headline. According to an analysis by communications professional Eglantine Daguet, who unpacked Gartner's full set of forecasts, 75% of employees will rely on chatbots for internal communications by 2028, replacing traditional channels. By 2029, 45% of chief communications officers will adopt narrative intelligence technologies to support reputation monitoring amid growing disinformation pressures, 75% of communications teams will use employee digital footprint analyses to deliver personalized messaging, and communications spending on data and analytics will double to 6% of function budgets.

Not everyone is convinced the industry is ready to capture the opportunity. Rik Turner, commenting on Stuart Bruce's LinkedIn post sharing the Gartner findings, questioned whether PR teams currently have the measurement capabilities and SEO expertise to justify larger budgets. "I'm sure SEO agencies will be competing for this," Turner noted, pointing to likely cross-industry competition for reallocated spend.

Jon Amar raised a structural tension that the Gartner forecast does not address directly: earned media requires journalists to produce it, yet newsroom headcounts continue to shrink. "Can't have earned media without them, and they just keep getting cut," Amar wrote. "Or will PR pros be pitching the JournoBot5000?" The question cuts to a real dependency within the model Gartner is projecting: an ecosystem where AI surfaces journalist-produced content at greater volume, while the industry producing that content continues to contract.

Know something we missed? Have a correction or additional information?

Submit a Tip
Your Topic
Today's stories
Updated daily by AI

Name any topic. Get daily articles.

You pick the subject, AI does the rest.

Start Now - Free

Ready in 2 minutes

Discussion

More SEO Agency Growth Articles