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This data‑driven guide contains essential information and actionable steps for SEOs navigating the shift toward AI as the first surface of search.
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In this webinar, Conductor’s Pat Reinhart, VP of Services & Thought Leadership, and Lindsay Boyajian Hagan, VP of Marketing, provide exclusive insights and commentary from The State of AEO/GEO in 2026 Report.
Generative search prioritizes factual grounding over regional intent, making retrieval-aware content strategy critical for enterprise search performance.
Google’s AI Overviews (AIO) represent a fundamental architectural shift in search. Retrieval has moved from a localized ranking-and-serving model, designed to return the most appropriate regional URL, to a semantic synthesis model, designed to assemble the most complete and defensible explanation of a topic.
This shift has introduced a new and increasingly visible failure mode: geographic leakage, where AI Overviews cite international or out-of-market sources for queries with clear local or commercial relevance.
This behavior is not the result of broken geo-targeting, misconfigured hreflang, or poor international SEO hygiene. It is the predictable outcome of systems designed to resolve ambiguity through semantic expansion, not contextual narrowing. When a query is ambiguous, AI Overviews prioritize explanatory completeness across all plausible interpretations. Sources that resolve any sub-facet with greater clarity, specificity, or freshness gain disproportionate influence – regardless of whether they are commercially usable or geographically appropriate for the user.
From an engineering perspective, this is a technical success. The system reduces hallucination risk, maximizes factual coverage, and surfaces diverse perspectives. From a business and user perspective, however, it exposes a structural gap: AI Overviews have no native concept of commercial harm. The system does not evaluate whether a cited source can be acted upon, purchased from, or legally used in the user’s market.
This article reframes geographic leakage as a feature-bug duality inherent to generative search. It explains why established mechanisms such as hreflang struggle in AI-driven experiences, identifies ambiguity and semantic normalization as force multipliers in misalignment, and outlines a Generative Engine Optimization (GEO) framework to help organizations adapt in the generative era.
From an AI engineering standpoint, selecting an international source for an AI Overview is not an error. It is the intended outcome of a system optimized for factual grounding, semantic recall, and hallucination prevention.
AI Overviews employ a query fan-out mechanism that decomposes a single user prompt into multiple parallel sub-queries. Each sub-query explores a different facet of the topic – definitions, mechanics, constraints, legality, role-specific usage, or comparative attributes.
The unit of competition in this system is no longer the page or the domain. It is the fact-chunk. If a particular source contains a paragraph or explanation that is more explicit, more extractable, or more clearly structured for a specific sub-query, it may be selected as a high-confidence informational anchor – even if it is not the best overall page for the user.
The appearance of English summaries sourced from foreign-language pages is a direct result of Cross-Language Information Retrieval.
Modern LLMs are natively multilingual. They do not “translate” pages as a discrete step. Instead, they normalize content from different languages into a shared semantic space and synthesize responses based on learned facts rather than visible snippets. As a result, language differences no longer serve as a natural boundary in retrieval decisions.
The technical disconnect observed in AI Overviews, where an out-of-market page is cited despite the presence of a fully localized equivalent, stems from a fundamental conflict between search ranking logic and LLM retrieval logic.
Traditional Google Search is designed around serving. Signals such as IP location, language, and hreflang act as strong directives once relevance has been established, determining which regional URL should be shown to the user.
Generative systems are designed around retrieval and grounding. In Retrieval-Augmented Generation pipelines, these same signals are frequently treated as secondary hints, or ignored entirely, when they conflict with higher-confidence semantic matches discovered during fan-out retrieval.
Once a specific URL has been selected as the source of truth for a given fact, downstream geographic logic has limited ability to override that choice.
At the core of this behavior is a vector identity problem.
In modern LLM architectures, content is represented as numerical vectors encoding semantic meaning. When two pages contain substantively identical content, even if they serve different markets, they are often normalized into the same or near-identical semantic vector.
From the model’s perspective, these pages are interchangeable expressions of the same underlying entity or concept. Market-specific constraints such as shipping eligibility, currency, or checkout availability are not semantic properties of the text itself; they are metadata properties of the URL.
During the grounding phase, the AI selects sources from a pool of high-confidence semantic matches. If one regional version was crawled more recently, rendered more cleanly, or expressed the concept more explicitly, it can be selected without evaluating whether it is commercially usable for the searcher.
Freshness amplifies this effect. Retrieval-Augmented Generation systems often treat recency as a proxy for accuracy. When semantic representations are already normalized across languages and markets, even a minor update to one regional page can unintentionally elevate it above otherwise equivalent localized versions.
Importantly, this does not require a substantive difference in content. A change in phrasing, the addition of a clarifying sentence, or a more explicit explanation can tip the balance. Freshness, therefore, acts as a multiplier on semantic dominance, not as a neutral ranking signal.
One of the most significant, and least understood, drivers of geographic leakage is query ambiguity.
In traditional search, ambiguity was often resolved late in the process, at the ranking or serving layer, using contextual signals such as user location, language, device, and historical behavior. Users were trained to trust that Google would infer intent and localize results accordingly.
Generative retrieval systems respond to ambiguity very differently. Rather than forcing early intent resolution, ambiguity triggers semantic expansion. The system explores all plausible interpretations in parallel, with the explicit goal of maximizing explanatory completeness.
This is an intentional design choice. It reduces the risk of omission and improves answer defensibility. However, it introduces a new failure mode: as the system optimizes for completeness, it becomes increasingly willing to violate commercial and geographic constraints that were previously enforced downstream.
In ambiguous queries, the system is no longer asking, “Which result is most appropriate for this user?”
It is asking, “Which sources most completely resolve the space of possible meanings?”
The presence of a correctly implemented hreflang cluster does not guarantee regional preference in AI Overviews because hreflang operates at a different layer of the system.
Hreflang was designed for a post-retrieval substitution model. Once a relevant page is identified, the appropriate regional variant is served. In AI Overviews, relevance is resolved upstream during fan-out and semantic retrieval.
When fan-out sub-queries focus on definitions, mechanics, legality, or role-specific usage, the system prioritizes informational density over transactional alignment. If an international or home-market page provides the “first best answer” for a specific sub-query, that page is retrieved immediately as a grounding source.
Unless a localized version provides a technically superior answer for the same semantic branch, it is simply not considered.
In short, hreflang can influence which URL is served. It cannot influence which URL is retrieved, and in AI Overviews, retrieval is where the decision is effectively made.
AI Overviews are explicitly designed to surface a broader and more diverse set of sources than traditional top 10 search results.
To satisfy this requirement, the system evaluates URLs, not business entities, as distinct sources. International subfolders or country-specific paths are therefore treated as independent candidates, even when they represent the same brand and product.
Once a primary brand URL has been selected, the diversity filter may actively seek an alternative URL to populate additional source cards. This creates a form of ghost diversity, where the system appears to surface multiple perspectives while effectively referencing the same entity through different market endpoints.
The failures described below are not due to misconfigured geo-targeting or incomplete localization. They are the predictable downstream consequence of a system optimized to resolve ambiguity through semantic completeness rather than commercial utility.
From a business standpoint, the goal of search is to facilitate action. AI Overviews, however, do not evaluate whether a cited source can be acted upon. They have no native concept of commercial harm.
When users are directed to out-of-market destinations, conversion probability collapses. These dead-end outcomes are invisible to the system’s evaluation loop and therefore incur no corrective penalty.
Signals that once governed regional relevance – IP location, language, currency, and hreflang – were designed for ranking and serving. In generative synthesis, they function as weak hints that are frequently overridden by higher-confidence semantic matches selected upstream.
AI Overviews occupy the most prominent position on the SERP. As organic real estate shrinks and zero-click behavior increases, the few cited sources receive disproportionate attention. When those citations are geographically misaligned, opportunity loss is amplified.
To adapt, organizations must move beyond traditional visibility optimization towards what we would now call Generative Engine Optimization (GEO).
Geographic leakage is not a regression in search quality. It is the natural outcome of search transitioning from transactional routing to informational synthesis.
From an engineering perspective, AI Overviews are functioning exactly as designed. Ambiguity triggers expansion. Completeness is prioritized. Semantic confidence wins.
From a business and user perspective, the same behavior exposes a structural blind spot. The system cannot distinguish between factually correct and consumer-engagable information.
This is the defining tension of generative search: A feature designed to ensure completeness becomes a bug when completeness overrides utility.
Until generative systems incorporate stronger notions of market validity and actionability, organizations must adapt defensively. In the AI era, visibility is no longer won by ranking alone. It is earned by ensuring that the most complete version of the truth is also the most usable one.
More Resources:
Featured Image: Roman Samborskyi/Shutterstock
Bill is a Global Strategist with Bisan Digital, which focuses on helping companies implement and scale Global Digital Marketing Strategies. …
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