Key Takeaways
- AI Overviews are reshaping local search: Google now answers local service queries directly, often recommending specific businesses before showing traditional results
- Click patterns have fundamentally changed: Users increasingly trust AI-generated recommendations, clicking on suggested businesses without scrolling to organic listings
- Traditional SEO alone isn't enough anymore: Businesses need to optimize for AI visibility in addition to traditional search rankings to capture modern searchers
- Early action creates lasting competitive advantage: Local businesses optimizing for AI now are building market positions that will be difficult for competitors to challenge later
The way people find local businesses is changing faster than most business owners realize. When someone searches "plumber near me" or "best electrician in Phoenix," Google doesn't just hand them a list of ten websites anymore. It generates an AI-powered answer at the top of the page, often naming specific businesses and explaining why they might be good choices.
This is Google's AI Overview in action, and it's having a real impact on local businesses across every industry. Some businesses are seeing more calls than ever. Others are watching their phone go quiet while competitors get recommended by name. The difference often comes down to whether a business has adapted to how AI search actually works.
If you run a local business, especially in home services, this shift affects your bottom line. Understanding what's happening and what to do about it isn't optional anymore. It's essential.
What is Google's AI Overview?
Google's AI Overview is an AI-generated summary that appears at the top of search results for many queries. Instead of simply listing websites and letting users figure out which one to click, Google's AI reads through available information and provides a direct answer.
For local service searches, this often means Google AI will recommend specific businesses by name. Search "who should I call for AC repair in Dallas" and you might see an AI-generated response that mentions three companies, describes their specialties, and even references what customers have said about them in reviews.
According to research from BrightEdge, AI Overviews now appear in approximately 47% of all searches, with local service queries triggering them even more frequently.
Source: BrightEdge Research
This represents a fundamental change in how search works. Google isn't just pointing users toward information anymore. It's actively curating and recommending based on what its AI determines is most helpful. For local businesses, this means the old playbook of ranking in the top ten results doesn't guarantee visibility like it used to.
How AI Overviews Are Changing Click Behavior
The most immediate impact of AI Overviews is on how users interact with search results. When Google presents a direct answer with specific business recommendations, user behavior shifts dramatically.
Users Trust AI Recommendations
Research shows that users increasingly accept AI-generated answers as authoritative. When Google's AI says "here are three highly-rated plumbers in your area," many users treat that as a curated recommendation rather than just another search result. They're more likely to contact one of those named businesses without exploring further.
This trust factor means being included in an AI Overview carries significant weight. It's not just another listing. It's an endorsement from what users perceive as an intelligent system that has done the research for them.
Scroll Depth Has Decreased
With AI providing answers at the top of the page, fewer users scroll down to traditional organic results. The business that ranked #4 organically might have gotten plenty of clicks in the past. Now, if the AI Overview recommends three other companies, that #4 spot generates far less traffic.
This shift particularly impacts businesses that relied on decent-but-not-dominant search positions. Being somewhere on page one used to be valuable. Now, if you're not in the AI's recommendations, you might be invisible to a growing segment of searchers.
Mobile Search Behavior Amplifies the Effect
Most local searches happen on mobile devices, where screen real estate is limited. An AI Overview can take up most or all of the visible screen, meaning users may never see traditional results without deliberate scrolling. For local businesses, this makes AI inclusion even more critical for mobile visibility.
Winners and Losers: Real Impact on Local Businesses
The impact of AI Overviews isn't theoretical. It's showing up in call volumes, website traffic, and revenue for local businesses right now.
Businesses Benefiting from the Shift
Some local businesses are seeing significant increases in leads since AI Overviews became prevalent. These tend to share common characteristics:
They have complete, accurate information across the web. Their Google Business Profiles are fully optimized. Their websites clearly explain what they do and where they operate. Customer reviews mention specific details about their services.
These businesses didn't necessarily do anything new. They were already following best practices. But those practices now carry more weight because AI uses them to decide who to recommend.
Businesses Struggling with the Change
Other businesses are experiencing the opposite effect. Their phone traffic has dropped even though their search rankings haven't changed significantly. What's happening is that AI is recommending competitors, and users are calling those competitors without ever scrolling down to see other options.
These struggling businesses often have incomplete online profiles, inconsistent information across directories, thin website content, or reviews that don't provide detail about their actual work. AI can't confidently recommend what it can't clearly understand.
The Gap Is Widening
What makes this particularly urgent is that early advantages compound over time. Businesses that AI recommends now are getting more customers, which leads to more reviews, which reinforces their AI visibility, which leads to more recommendations. Meanwhile, businesses not being recommended are stuck in a declining cycle.
Impact by Industry: Who's Feeling It Most
AI Overviews affect local businesses differently depending on the industry and how people typically search for those services.
Home Services: High Impact
Home service businesses like plumbers, electricians, HVAC technicians, and roofers are seeing some of the largest shifts. These are exactly the kinds of searches where people want a direct recommendation. "Who should I call for a leaky faucet" is a perfect AI Overview trigger.
The home services industry also has significant search volume for these queries, which means the total impact on business is substantial. A plumber who consistently appears in AI recommendations will see dramatically different results than one who doesn't.
Professional Services: Moderate to High Impact
Lawyers, accountants, and other professional service providers are also seeing impact, though the nature of their services means users may do more research before deciding. Still, AI recommendations create powerful first impressions that influence the consideration set.
Retail and Restaurants: Growing Impact
Local retail and restaurant searches are increasingly triggering AI Overviews, especially for queries like "best pizza near me" or "where to buy running shoes in Austin." The impact here is growing as Google expands AI Overview coverage.
| Industry | AI Overview Frequency | User Trust in AI Recommendations | Overall Business Impact |
|---|---|---|---|
| Home Services | Very High | High | Significant revenue shift |
| Professional Services | High | Moderate | Influences consideration |
| Healthcare | Moderate | Moderate | Affects discovery |
| Retail | Growing | High | Increasing traffic impact |
| Restaurants | High | Very High | Direct booking influence |
What AI Looks For When Making Recommendations
Google hasn't published an official algorithm for AI Overview recommendations. But extensive testing and analysis reveals clear patterns in what makes businesses more likely to be included.
Clarity and Consistency of Business Information
AI needs to confidently understand your business before it will recommend you. That means having clear, consistent information everywhere you appear online. Your business name, address, phone number, and service descriptions should match exactly across your website, Google Business Profile, Yelp, industry directories, and anywhere else you're listed.
Inconsistencies create uncertainty for AI. If your address shows differently on two platforms, AI can't be sure which is correct. Uncertainty means fewer recommendations.
Depth and Structure of Website Content
AI systems parse website content differently than human visitors do. They look for clear structure, specific information, and content that directly answers questions users might ask.
A website that says "we offer quality plumbing services" gives AI almost nothing to work with. A website with dedicated pages for each service, specific descriptions of what you do, clear service area information, and FAQ content gives AI confidence about what your business actually provides.
Review Sentiment and Specificity
AI doesn't just count stars. It analyzes what customers actually say in reviews. Patterns in review content influence whether AI perceives your business as a strong recommendation.
Reviews that mention specific positive experiences carry more weight than generic praise. "They fixed our water heater the same day we called and explained every step of the repair" tells AI more than "great service!" Reviews that consistently mention professionalism, reliability, or expertise build a picture AI can reference when generating recommendations.
Local Authority Signals
AI considers signals that indicate your business is established and trusted in your local market. This includes how long you've been operating, mentions in local publications, membership in trade associations, and links from other local websites.
Businesses with deep community roots and verified credentials tend to appear more frequently in AI recommendations than newer or less established competitors.
Traditional SEO vs AI Visibility: Key Differences
Understanding how AI visibility differs from traditional SEO is crucial for adapting your strategy.
| Factor | Traditional SEO | AI Visibility |
|---|---|---|
| Goal | Rank high in search results | Be named in AI recommendations |
| Success metric | Position on search results page | Inclusion in AI-generated answer |
| Competition | 10 spots on page one | 3-4 businesses AI actually names |
| Content focus | Keywords and links | Clarity and structure |
| Review importance | Star rating and quantity | Sentiment and specific content |
| Speed of impact | Months of effort | Can change in weeks |
| User decision | User evaluates options | AI pre-selects options for user |
The most significant difference is in how competition works. Traditional SEO meant competing for limited spots on page one. AI visibility means competing to be one of the few businesses AI specifically recommends. The competition is fiercer, but the reward is greater.
Six Steps to Improve Your AI Visibility
Here's a practical approach to positioning your business for AI recommendations.
Step 1: Audit Your Current Visibility
Before making changes, understand where you stand. Search for your services using conversational queries like "who should I call for [service] in [city]" and observe whether AI mentions your business. Check what competitors are appearing in recommendations.
Step 2: Optimize Your Google Business Profile
Your Google Business Profile is often the primary source AI uses to understand your business. Complete every section. Add all relevant service categories. Write a detailed description that clearly explains your services and coverage area. Add photos regularly. Use the Q&A feature to address common customer questions.
Step 3: Fix Information Inconsistencies
Audit your online presence for inconsistencies. Your NAP data should be identical everywhere. Update outdated listings. Remove duplicate or incorrect profiles. Consistency builds AI confidence.
Step 4: Restructure Your Website for AI
Create dedicated pages for each service you offer. Use clear headings that describe what each page covers. Add FAQ content that directly answers common customer questions. Implement schema markup to help AI parse your information.
Step 5: Build Better Reviews
Request reviews that include specific details about the customer's experience. Respond thoughtfully to all reviews. Address negative feedback professionally. The content of your reviews matters as much as the quantity.
Step 6: Monitor and Adapt
AI recommendations change over time. Regularly check your visibility across different queries. Watch what competitors are doing. Continue improving based on what you observe.
How Pantora Helps Local Businesses Adapt
Making all these changes manually is time-consuming, especially when you're running a business. Pantora was built specifically to help local businesses, particularly home service companies, improve their AI visibility without becoming tech experts themselves.
Pantora creates an AI-optimized website for your business that's structured specifically for how AI systems parse and recommend content. This works alongside your existing website to boost how AI understands your services.
Beyond the website, Pantora provides weekly recommendations for improving your visibility. These aren't vague suggestions. They're specific actions you can take, and Pantora can implement them for you if you prefer.
Pantora also tracks how your business appears across all major AI platforms, not just Google. You can see which queries mention your business, how AI describes you, and how you compare to local competitors. This visibility into AI perception lets you make informed decisions about where to focus improvement efforts.
The Broader Shift: AI Is Just Getting Started
Google's AI Overview is just one manifestation of a larger change in how people find local services. ChatGPT, Perplexity, and other AI assistants are becoming mainstream tools for local recommendations. Voice assistants use AI to answer questions about nearby businesses. This isn't a temporary trend.
A study from Gartner predicts that by 2026, traditional search engine traffic will decrease by 25% as users shift to AI-powered alternatives for information discovery.
Source: Gartner Research
For local businesses, this means AI visibility will become increasingly important over time. The businesses that build strong AI presence now are positioning themselves for this future, not just optimizing for today's search landscape.
Why Acting Now Matters
The window for gaining competitive advantage through AI visibility is open right now, but it won't stay open indefinitely. Most local businesses haven't caught on to this shift yet. They're still focused on the same marketing tactics they've used for years.
This creates an opportunity for businesses willing to move quickly. Building AI visibility now, while competition is limited, establishes a foundation that will be hard for competitors to overcome later.
Think about Google reviews. The contractors who started collecting reviews aggressively ten years ago now have hundreds or thousands of reviews. Their competitors who started later are still trying to catch up. AI visibility is following a similar pattern. Early movers are building advantages that will compound over time.
What This Means for Your Marketing Strategy
AI Overviews don't make traditional marketing obsolete. SEO still matters. Reviews still matter. A good website still matters. What's changed is that these elements now serve an additional purpose: helping AI understand and recommend your business.
Your marketing strategy should evolve to include AI visibility as a core component, not a replacement for existing efforts but an essential addition. Every improvement you make to your online presence, from updating your Google Business Profile to adding content to your website, should be evaluated for both traditional SEO impact and AI visibility impact.
For home service businesses especially, this dual focus is critical. Your customers are searching in new ways, and AI is increasingly mediating which businesses they consider. Adapting to this reality isn't about chasing trends. It's about staying visible where your customers are actually looking.
Pantora monitors sentiment across AI platforms and shows you exactly how AI perceives and describes your business. Understanding this perception is the first step to improving it. You can't fix what you can't see, and most businesses have no visibility into how AI talks about them.
Looking Forward: Preparing for What's Next
Google continues to expand AI Overview coverage and capabilities. Other AI platforms are growing in influence. Voice search is becoming more conversational and AI-driven. The direction is clear: AI will play an increasingly central role in how consumers find and choose local businesses.
Businesses that build strong AI visibility now aren't just solving today's problem. They're establishing the foundation for visibility across whatever AI platforms emerge next. Clear, consistent, comprehensive online information benefits you regardless of which AI system is doing the recommending.
The businesses that thrive in this new environment will be those that treat AI visibility as a core business priority, not an afterthought. They'll ensure their information is accurate everywhere. They'll structure their content for AI consumption. They'll actively monitor and improve how AI perceives them.
You're already great at what you do. Your customers know it. Your reviews reflect it. The question is whether AI knows it too. Making sure the answer is yes is the most important marketing investment you can make right now.