How AI Search Is Changing How Customers Choose Local Businesses
About Caresa Hope: Founder of HopeSpring Digital and a digital marketing strategist specializing in SEO, AI-ready content, conversion-focused web design, and business strategy that helps small businesses turn online visibility into measurable growth.
The short answer: Customers are increasingly asking AI tools like ChatGPT and Google's AI Mode who to hire, instead of scrolling through search results. These tools build their answers from the same things that already matter in local SEO: your Google Business Profile, your reviews, your website, and what other sites say about you. Businesses with those basics in place have a real opportunity to show up in AI answers, often ahead of bigger competitors.
Customers are asking AI who to hire
A year ago, using AI to find a plumber or a counselor was rare. That changed fast. BrightLocal's 2026 Local Consumer Review Survey found that use of ChatGPT and other AI tools for local recommendations jumped from 6% to 45% in a single year, making AI the third most popular source of business recommendations behind Google and Facebook.
We're seeing the same thing with our own clients. Customers have told cleaning companies, plumbers, electricians, and counselors we work with that they found them through ChatGPT or an AI answer. It isn't limited to one industry. If people hire businesses like yours, some of them are already asking AI.
The way people search has changed too. Instead of typing "plumber Buffalo MN," they ask a full question: "Who's a reliable plumber near Buffalo who can come out today?" The AI answers with a short list of names and a reason for each.
How AI tools decide which local businesses to recommend
Different AI tools work in slightly different ways, but they share one thing: they look for trustworthy, consistent information about your business across the web.
Google's AI Overviews and AI Mode.
Google says these features are built on its core search ranking systems. To answer a question, they may run several related searches behind the scenes and pull together information from multiple sources. Google also says no special optimization or special schema is required to appear in them. The same SEO fundamentals that help you rank in regular results help you appear here. Standard structured data still helps search engines understand your business, which we cover in our guide to schema markup on Squarespace.
ChatGPT.
ChatGPT is now much more local than it used to be. When someone asks for a recommendation, it can take their general location into account, so "Who's a good electrician near me?" returns businesses near where that person is actually searching, not a generic national list. It then searches the web in real time and shows the sources it used, which commonly include review sites, directories, business websites, and community discussions. That means a customer in Buffalo and a customer in Maple Grove can get different answers to the same question. Because ChatGPT pulls from many places, inconsistent information (an old phone number on one directory, different hours on another) can work against you.
What this means for you: AI tools are trying to recommend businesses they can verify. The clearer and more consistent your information is everywhere it appears, the easier you are to recommend.
Why this is good news for small local businesses
It's easy to read the headlines and feel like AI is one more thing to worry about. We see it differently: AI search rewards clarity and trust more than budget.
Most businesses aren't showing up yet. SOCi's 2026 Local Visibility Index found ChatGPT recommended only about 1.2% of the business locations it analyzed. That study looked at multi-location brands, so it doesn't describe every small business, but it shows how much room there is.
You don't need a huge ad budget. AI answers don't sell placement the way search ads do. They favor businesses with good reviews, accurate information, and clear websites.
Specific beats generic. Someone asking for "a counselor in Maple Grove who works with teens" gets a specific answer. If your website clearly says what you do, who you help, and where, you're a better match than a bigger competitor with vague pages.
What hasn't changed
AI search didn't replace the fundamentals. It made them more important, because AI tools lean on them to decide who to trust.
Your Google Business Profile is still one of the most visible places your business information lives.
Reviews still drive decisions. AI tools summarize them, and many customers check reviews before trusting an AI suggestion.
Clear service pages tell both people and AI exactly what you offer and where. One page per main service works better than one long list.
Consistent business info (name, address, phone, hours) across your website, profile, and directories helps AI tools confirm you're legitimate.
Your AI search checklist
Work through this list once, then revisit it every few months.
Google Business Profile: correct categories, services, service area, hours, and photos of real work.
Reviews: a steady flow of recent reviews, with replies from you.
Service pages: one clear page per main service, naming the towns you serve.
Plain-language answers: an FAQ section that answers the questions customers actually ask, in full sentences.
Consistent info: the same name, address, phone, and hours on your website, Google, Facebook, Yelp, and industry directories.
About page: who you are, how long you've been in business, and any licenses or certifications.
Crawler access: confirm your website isn't blocking the crawlers AI search tools use to read it. (On Squarespace, check your crawler settings.)
Industry and local listings: make sure you're listed on the directories and associations relevant to your field.
How to check whether AI recommends you
Open ChatGPT and Google's AI Mode and ask the questions your customers would ask, such as "Who's the best [your service] near [your town]?" Try a few versions.
Keep two things in mind. First, answers change from day to day and person to person, so treat one result as a snapshot, not a ranking. Second, look at the sources the AI cites. If it cites a directory with your old phone number, that's a specific fix you can make today.
Want to know where you stand?
We help Minnesota businesses build websites and local SEO that work for both Google and AI search. Book a free discovery call and we'll look at how your business shows up today and what would make the biggest difference.
FAQ
Do I need to do something special to show up in Google's AI Overviews or AI Mode?
No special setup is required. Google says the same SEO fundamentals that help you rank in regular search help you appear in its AI features, and no special schema is needed.
Where does ChatGPT get its local business recommendations?
ChatGPT can search the web in real time and shows the sources it used. Those commonly include review sites, directories, business websites, and community discussions, so accurate information across all of them matters.
Can I pay to be recommended by ChatGPT?
Organic AI recommendations aren't something you can buy. Your best path is strong reviews, accurate listings, and a clear website.
How do I know if AI is sending me customers?
Ask new customers how they found you, and include "ChatGPT or an AI tool" as an option on your intake form. Visits from Google's AI features are counted in Search Console along with regular search traffic.
Will AI search replace Google?
No. Google is still the single biggest search engine by far, with about 90% of worldwide search market share as of April 2026 (StatCounter). And much of the AI search people do happens inside Google itself: Google says its AI Overviews, the AI summaries at the top of search results, reach more than 2 billion people a month. In BrightLocal's 2026 survey, Google was still the most used source for local recommendations, with AI tools third. For a local business, that means AI search isn't a separate world. Showing up well in Google is still the biggest part of showing up in AI answers.
Is AI search only for certain industries?
No. We've seen AI-sourced leads for cleaning companies, plumbers, electricians, counselors, and more. If customers look for businesses like yours, some are asking AI.
Sources: BrightLocal, Local Consumer Review Survey 2026 · Google Search Central, AI features and your website · SOCi 2026 Local Visibility Index (via IPS News) · StatCounter and Google AI Overviews figures (via Mean CEO; link primary sources)
