The Start of “Water Pollution” on the Internet

About 15% of posts on Reddit are AI-generated. Amazon has halted the production of AI web comics due to quality control issues.

When read separately, these two news items might elicit a simple “Hmm.” However, when viewed together, a certain structure emerges: The mass production of AI content is beginning to pollute the very ‘quality’ of platforms.

And the first to drown in this pollution are not large corporations, but local small businesses.

What’s Happening—Understanding “AI Sludge” Through Numbers

First, let’s clarify the current situation.

According to research by Originality.ai, it is estimated that by 2024, about 10-15% of new content on the web will be AI-generated. Predictions suggest that by 2025, around 15% of Reddit posts will be AI-derived. This translates to millions of AI posts flooding Reddit daily.

Amazon’s actions are also symbolic. Since around 2023, there has been an explosive increase in low-quality AI-generated e-books on Kindle Direct Publishing, with daily publishing requests swelling to thousands. As a result, Amazon has limited the number of publications to three per day and has decided to halt AI comics due to quality concerns.

This phenomenon is referred to as “AI sludge.” It describes a state where search results and social media feeds are filled with content that is indistinguishable from that produced by humans or AI.

The issue is not that “AI is bad.” The production cost of content has approached near-zero, resulting in the value of quantity beginning to lose its significance.

The Mechanism Behind the Breakdown of SEO Traffic for Small Businesses

Now, let’s get to the main point. How is this change breaking web traffic for small businesses?

Until now, many small businesses have relied on SEO content as their weapon. They would write 5-10 blog posts per month, secure high search rankings, and generate inquiries. Outsourcing would cost around 30,000 to 50,000 yen per article, making it a viable investment of 200,000 to 500,000 yen per month. This “content SEO” has been the standard for web traffic among small businesses, including local construction firms, professional services, and manufacturers.

However, AI is disrupting this structure from three directions.

1. The Competition of Quantity Has Become Meaningless

Using ChatGPT, the production cost per article is effectively just a few dozen yen. Instead of 10 articles a month, one could produce 1,000. As large corporations and affiliates begin mass-producing AI content, search results are becoming cluttered with similar AI articles. Human-written articles costing 200,000 yen for 10 pieces are being pushed down by 1,000 AI-generated articles. The cost difference is over 100 times. The very arena for competing on quantity has disappeared.

2. The Reliability of Search Results is Declining, Causing Users to Leave

According to Gartner’s predictions, organic search traffic is expected to decrease by 25% by 2026. The reason is simple: users are starting to feel that they cannot find reliable information even when they search. Instead, they are turning to social media for word-of-mouth searches, video searches on YouTube, or directly asking AI chatbots. Even if small businesses invest in SEO, the overall pie for the act of searching is shrinking.

3. Google Itself Has Started Providing AI Responses

Google’s AI Overview (formerly SGE) displays AI-generated answers at the top of search results. Users may find satisfaction there and not click on individual sites. This is known as the increase in “zero-click searches.” Some studies indicate that over 60% of searches end without a click. Users’ journeys may end before they even reach small business websites.

In summary, as the production cost of content approaches zero, the value of ‘quantity’ has plummeted, while the distribution channel of search itself is shrinking. This is the mechanism by which web traffic for small businesses is breaking down.

So, What Should Small Businesses Do?

There’s no point in being overly pessimistic. Let’s discuss “what to do next.”

To conclude, focus on what AI cannot mass-produce: ‘real experiences,’ ‘people,’ and ‘local.’

1. Commit to Real Experience Content

AI excels at “general statements” but cannot write about “what actually happened in our field.”

For example, a local painting company can serve as a hint. They could post case studies with photos every week, detailing, “For a 30-year-old mortar wall, we chose this paint because the underlying condition was like this,” including the craftsmen’s decision-making process. This is something AI cannot generate. And there are clients actively searching for this kind of information.

What about costs? By taking photos with a smartphone and interviewing the on-site craftsmen for five minutes, one could draft an article in 30 minutes using AI for formatting. No outsourcing costs. Four articles a month would only take two hours. This is sustainable.

2. Put “People” in the Spotlight

Amid the flood of AI content, the value of content that shows human faces and names increases relatively.

The thoughts of the CEO, the daily lives of staff, interactions with customers—whether on social media, blogs, or YouTube. Visible communication becomes a “signal of trust” that AI cannot replicate.

Google is also shifting its focus towards E-E-A-T (Experience, Expertise, Authority, Trustworthiness). In this era, “who is saying it” is evaluated in SEO. Articles from local experts with 20 years of experience will rank higher than anonymous AI articles. This trend will accelerate.

3. Focus on Local

The flood of AI content primarily occurs around nationwide keywords. It’s no longer feasible to rank for “exterior wall painting costs.” However, with “○○ City exterior wall painting mortar,” the situation changes.

Local SEO, optimizing Google Business Profiles, and collaborating with local media—this domain is difficult for AI mass producers to penetrate. This is because local information “cannot be written without being present there.”

Managing a Google Business Profile is free. Thoughtful responses to reviews, regular updates to posts, and adding photos can significantly change exposure in local searches. The additional monthly cost is zero; all that’s needed is 30 minutes of operational time per week.

4. Use AI for “Quality Enhancement” Rather Than “Mass Production”

This is a crucial point. I’m not saying to avoid using AI. Change how you use it.

Instead of mass-producing articles from scratch with AI, use it to shape and structure your own real experiences. Analyze data to see which keywords are trending. Assess customer inquiry trends to determine what content to write next.

Human experience × AI efficiency. This equation represents the correct way for small businesses to utilize AI.

From a Structural Perspective, There’s an Opportunity for Small Businesses

Paradoxically, the flood of AI content presents an opportunity for small businesses.

Why? Large corporations incur enormous costs for quality control of AI content to maintain their brands. Amazon’s decision to halt comics illustrates this perfectly. In contrast, small businesses can speak in their own words, take their own photos, and connect directly with local customers. They can make quick decisions and communicate in a way that reveals their ‘human’ side. This is something only small businesses can do.

AI has brought content production costs close to zero. This means that the value of the content itself is nearing zero, while the value of ‘who is sharing it, based on what experiences, and in what context’ is skyrocketing.

This structural change is advantageous for small businesses over large corporations.

What to Do Next Week

Finally, here are three specific actions to take.

1. Open your Google Business Profile and check the date of the last update. If it’s been more than three months, add one post today.
2. Choose one recent project case or customer interaction, take a photo with your smartphone, and write a 500-word article. Use AI to draft it and then revise it in your own words. This can be done in 30 minutes.
3. Search for “your company name + your area name.” See what appears at the top. If your company website doesn’t show up, that’s your first area for improvement.

The flood of AI content will not stop. However, amidst this flood, the value of “the real thing” will rise. Step away from the competition of quantity and win with real experiences and trust. Small businesses have the tools to do this.