Google is losing ground to AI when people look for local businesses

Search changed, but most businesses haven't noticed yet

For years, the customer journey started on Google: type, click, compare. That still happens, but a new layer appeared before it. More and more people open ChatGPT, Gemini, Claude, or Perplexity and simply ask: 'what's the best Japanese restaurant near me?' or 'is there a good physiotherapy clinic in neighborhood X?'. The AI responds with names, descriptions, and sometimes even a summary of why that business is trustworthy. Whoever doesn't appear in that answer doesn't exist for that customer, even if they have a flawless website and a well-filled Google profile.

Whoever doesn't appear in the AI's answer doesn't exist for that customer, even with a flawless website.

The numbers already confirm the shift

A report from Adobe published in June 2026 showed that AI-generated traffic to travel and retail sites grew over 200% compared to the previous year, with conversion rates higher than those of traditional organic traffic. This means that visitors arriving via AI already arrive more decided, more ready to buy or book. The trend isn't exclusive to large brands: local businesses of any size are being cited or ignored by AI based on the quality and consistency of the information that exists about them online.

What makes AI choose one business over another

Generative AI tools don't search the way Google does. They synthesize information from multiple sources and recommend what seems most trustworthy and relevant for that specific question. That's why having consistent data across multiple channels (name, address, phone, category, hours) carries a lot of weight. Reviews with strong ratings and volume also factor into that equation. And businesses that have never been clearly described anywhere online simply have no raw material for AI to use when making a recommendation.

This applies to businesses of any size

You don't need to be a national chain to appear in AI responses. A neighborhood hair salon, a car repair shop, or an accounting firm can all be cited by ChatGPT, Gemini, and the leading AI tools if the information about them is complete, consistent, and present in the right places. The competitive advantage now lies in structuring that information before competitors do. Whoever acts first occupies the space in AI responses; whoever waits finds that space already filled by someone else.