Last month, I sat across from a local bakery owner in Denver who was baffled: “My foot traffic’s down—my website’s still ranking #1 on Google!” But she hadn’t accounted for a new game in town: AI-generated search results.
And she’s not alone—AI is completely reshaping how people find and interact with local businesses. Here’s how:
1. Search behavior is shifting fast—and locally
- 80% of U.S. consumers search for local businesses online at least once a week, and 32% do it daily
- Once a user sees something they like, 76% will visit the business within 24 hours, and 28% end up buying
The opportunity for local businesses has never been greater—but AI is cutting in.
2. AI Overviews are eating clicks—but you can still be heard
Google and other platforms are layering AI-generated summary boxes (AI Overviews) above traditional search results. According to Semrush:
- Over 13% of all searches triggered AI Overviews by March 2025, up from 6.5% in January
- These AI Overviews appear predominantly for informational queries (88%)
And while some headlines warned of traffic loss, the data shows a nuanced picture: zero-click rates didn’t spike, they actually edged down from 38% to 36% for the same keywords. That implies users might still scroll past AI summaries when they want more information.
3. Businesses and marketers are racing to optimize for AI visibility
New roles and buzzwords are emerging—AI SEO, Answer Engine Optimization (AEO), and Generative Engine Optimization (GEO). According to multiple studies:
- 86% of SEO pros are already using AI tools, and 65% of businesses have seen better SEO results
- And Answer Engine Optimization strategies are gaining traction, with conservative projections estimating a 20–40% drop in traditional organic traffic for those not adapting by 2026
- More locally, 88% of multi-location marketers are already deploying generative AI, and 59% want to improve their AI skills this year.
4. What this means for Local SEM—and what to do
The local bakery owner’s reaction? She’s overhauled her strategy. Here’s what we put in place:
Focused citation and content strategy
- Optimize for AI citations: AI Overviews often pull from structured local data—think Google Business Profile content, updated FAQs, and consistent NAP (Name, Address, Phone) info.
- Create smart snippets: Quick answer sections and well-structured FAQs help AI tools easily parse and reference your content.
Hybrid SEO–AI approach
- Balance traditional SEO with AI-aware content: Keep blogs and pages optimized for keywords and AI format (direct answers, schemas, quick bullet points).
- Provide depth beyond the summary: Write content that prompts users to “learn more”—supporting scroll and engagement beyond the AI snippet.
Track for AI visibility
- Monitor AI-specific insights: Tools like Profound and Athena are emerging to track your brand visibility within chatbots and AI search results en.wikipedia.org+11mandr-group.com+11semrush.com+11en.wikipedia.orgen.wikipedia.org+2wsj.com+2ft.com+2.
- Evolve your KPIs: Think beyond page views—track mentions in AI summaries, answer-box placements, and structured data health.
How do you take advantage?
AI isn’t breaking Local SEM—it’s upgrading it. Businesses that adapt—by optimizing for both traditional search and AI-driven answers—are seeing more actionable engagement:
- Local discovery remains strong: 80% of local searches lead to visits wsj.com.
- AI may grab the first glance, but well-crafted content still drives deeper user clicks—and clicks mean conversions.
So, to win in today’s local search landscape, treat AI as a front porch, not a threat. Make sure your content invites people in.
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