AI search for local business: what actually changes

Tom McSherry
16 July 2026 · 12 min read
Every local business owner I speak to has been contacted about AI SEO in the past year, usually with a warning attached. So here is my position, plainly: for most local businesses, very little has changed so far, and the prices being charged to fix it are wildly out of proportion to the problem.
I would be happy to be proven wrong, and I watch this closely enough that I would notice. But I am not going to tell you the sky is falling to sell you something, so this guide is what I actually think, and why.
What we are actually talking about
Two different things get bundled into "AI search":
- AI answers inside Google - the summary that sometimes appears at the top of results instead of you clicking a link.
- Assistants like ChatGPT, where somebody asks for a recommendation and gets an answer with no search results page at all.
The industry has a name for optimising towards these - generative engine optimisation, or GEO. What is GEO, a straight answer covers the term itself, and how AI chooses which business to recommend covers the mechanism as best anyone understands it.
Who actually loses traffic, and who barely notices
This is the part that gets flattened in the sales pitch, and it is the whole thing. The impact of AI search depends on where a business's traffic came from in the first place.
If a business earned a big share of its traffic from informational content - guides, explainers, comparison articles, the kind of thing a buyer reads over weeks before a considered purchase - then AI answers genuinely erode it. Somebody who would have read your article now reads a summary instead. For a technical manufacturer or a business with a long research-driven sales cycle, this is real and worth tracking.
If a business's enquiries come from somebody searching for a plumber in their suburb and calling one of the top three, almost none of that journey was ever informational. It lives in the map results and near-me searches, which is the part of search AI has touched least. There was no article in the path to lose.
That distinction is by traffic source, not by business size, and it is set out fully in who actually loses traffic to AI search.
The question is not how big you are. It is whether informational content was ever how people found you.
So should a local business do anything?
Monitor, do not chase. Concretely:
- Keep doing the local work that drives enquiries - profile, reviews, service pages, links. It is also, as it happens, most of what makes an AI answer name you.
- Have somebody check occasionally whether assistants name you for the obvious questions your customers would ask. It takes minutes and it is worth knowing.
- Do not pay a premium for a separate AI package while your Business Profile is half-finished and you have eleven reviews.
The last point is the one that matters commercially. Even where AI does name businesses, the traffic flowing from it is small next to traditional local search. Paying a premium to capture a trickle, while the river is unattended, is the wrong order of operations.
What actually helps you show up in AI answers
Here is the part the AI SEO pitch tends to skip: the things that make an assistant name your business are largely the things that make Google rank you.
- A complete, accurate Google Business Profile with the right categories.
- Genuine reviews, in volume, that say what you are good at.
- Consistent business details everywhere you appear.
- Clear pages that plainly state what you do and where you do it, in normal language.
- Being mentioned and linked by other legitimate sites.
That is the same list as the local SEO guide. Which is the honest headline: for a local business, doing local SEO properly is doing AI optimisation. Does ranking in AI search need separate work? goes into where the two genuinely diverge, which is less often than you would think.
Tracking it, if you want to
It is measurable. You can check how often assistants name your business for the questions your customers would ask, and track it over time - I have built exactly this for clients where it genuinely matters. AI search visibility: what it is and how to track it covers the how.
The discipline is to keep it in proportion. AI visibility work can quietly eat a monthly budget, and for a local business the return on that hour is lower than on almost anything else you could do with it.
The tools, and why I am sceptical
Separately from AI search, there is a wave of tools promising to do your SEO with AI. I am very sceptical of anything claiming to be autonomous, and the reasons are specific rather than instinctive:
- They publish at volume without judgement, which produces pages that compete with your own - see the hidden cost of AI articles at scale.
- You typically cannot control anchor text or internal linking, which is a real red flag.
- The damage is invisible on day one and arrives later as a mess somebody has to untangle.
The longer arguments are in why I don't trust 'set and forget' AI SEO tools and why autonomous agents go off the rails. For what it is worth, I use AI heavily in my own process - for the mechanical work, with a human making every judgement call. That model is human in the loop, and it is also how this blog gets written.
When I would change my mind
I hold this position with a hand on the door. The things I watch for: assistants becoming a normal way people find local services rather than an occasional one, AI answers taking over the near-me and map-style searches specifically, or a measurable shift in where my clients' enquiries actually originate.
None of those has happened at a scale that changes what I would advise a local business to spend on. When it does, I will say so here, and the answer will be based on numbers rather than on what is easiest to sell.
In the meantime, the highest-return thing you can do remains unglamorous and unchanged: win the map results in your own area.