For years, ranking well on Google was the golden ticket for local businesses looking to generate a steady stream of web visits.
But thanks to the rise of features like AI Overviews (AIO), that strategy is becoming less predictable.
To illustrate, Google's AIOs now appear for almost 55% of all searches, according to data from WordStream. Meanwhile, 40.2% of local business queries now trigger an AIO.
This is problematic since the presence of an AIO cut organic clicks by 38%, per a Search Engine Journal report.
To make matters worse, many small businesses still depend on local search to generate leads, appointments, and foot traffic.
According to Sierra Goldstein, founder and CEO of award-winning digital marketing agency Market Minds Creative, businesses should recognize that AIOs represent something much larger than another search algorithm update.
"Google is increasingly helping customers make decisions before they ever visit a website, which means local visibility has to extend beyond rankings," she says.
"Businesses now need to become sources Google is confident summarizing and recommending."
Understand What AI Overviews Mean for Local Businesses
AI Overviews often reduce click-through rates while leaving search visibility largely intact.
This means a business may still appear prominently during a customer's search, but Google now surfaces enough information that some users no longer feel the need to visit the website immediately.
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This is why Goldstein cautions business owners against panicking when web traffic declines.
"For many small businesses, the first reaction to declining website traffic is to assume their SEO strategy has stopped working," she says.
"But that conclusion may be premature. Fewer clicks do not always mean fewer opportunities."
Instead, business owners should monitor whether they continue appearing when customers research local services, compare providers, or ask AI-powered questions about businesses in their area.
That means paying closer attention to indicators such as:
- Search impressions
- Branded search volume
- Google Business Profile interactions
- Calls, direction requests, and bookings
- Local visibility across AI-generated search experiences
Together, these metrics provide a more complete picture of whether the business remains part of the customer's decision-making process.
After all, consistently appearing inside AI-generated recommendationshelps reinforce familiarity, even if users don't click immediately.
Adapt Local SEO for an AI-First Search Environment
Local SEO is becoming more about helping AI systems verify that the business deserves to be recommended, rather than just about helping customers find a business.
As such, Market Minds Creative recommends brands make the following adjustments to their local SEO strategies:
Strengthen Local Authority
An up-to-date Google Business Profile, consistent business information across directories, and authentic customer reviews all help Google determine whether a business is credible enough to recommend.
This means just having an entry on Google Maps isn't enough to earn the trust of AI.
That's why business owners should regularly review whether they have:
- A complete and actively managed Google Business Profile
- Consistent name, address, and phone number (NAP) information across local directories
- Accurate business categories, hours, and service areas
Create Content AI Can Understand
Instead of creating pages that target slight variations of the same keyword, businesses should focus on answering the questions customers actually ask before making a decision.
Location-specific service pages, pricing information, FAQs, and explanations of common customer concerns all provide context that AI systems can summarize and reference.
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Structured data also plays an important role by helping search engines interpret services, locations, operating hours, reviews, and other business details with greater confidence.
"AI can't confidently recommend information it struggles to interpret," Goldstein adds.
"The businesses earning visibility are usually the ones that explain what they do, who they serve, and why they're different in a way that's clear for both customers and search engines."
Build Trust Beyond Your Website
AI systems compare information from multiple sources before generating recommendations.
But it's important to note that AI systems look at more than just local listings.
To build trust beyond the website, businesses should:
- Earn social media or web mentions from respected local organizations
- Compile authentic customer reviews across relevant platforms
- Publish expert commentary or thought leadership that earns citations from other websites
Optimize for Visibility Wherever Customers Search
Local search is changing from a race for clicks into a competition for recommendations.
Businesses that continue investing in Google Business Profile optimization, structured data, customer reviews, and locally relevant content will still be well positioned to succeed.
But the difference now is that these efforts support two audiences: prospective customers and the AI systems increasingly shaping their decisions.
