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Local business owners: Has AI search impacted your customer acquisition? What's actually working?

LO
LocalBizOwner_Marcus · Owner, Home Services Company
· · 95 upvotes · 12 comments
LM
LocalBizOwner_Marcus
Owner, Home Services Company · January 9, 2026

I run a plumbing company in a mid-size city. Traditional local SEO has been our bread and butter for years - Google Business Profile, reviews, local citations, etc.

But I’m starting to see something new: customers telling us they found us through ChatGPT or Perplexity.

Started testing this myself. Asked AI “best plumber in [my city]” and “who should I call for emergency plumbing near [location].”

Sometimes we show up. Sometimes we don’t. Our main competitor appears more consistently.

What I’m trying to figure out:

  1. What makes AI recommend one local business over another?
  2. Is this just traditional local SEO or something different?
  3. How do I even track if we’re being recommended?

Any other local business owners looking at this? What’s working?

12 comments

12 Comments

LE
LocalSEO_Expert_Amanda Expert Local SEO Consultant · January 9, 2026

Great timing on this question. I’ve been doing a deep dive on local AI visibility.

The short answer:

Local AI visibility is 80% traditional local SEO fundamentals done really well, plus 20% new considerations.

What AI systems pull from for local recommendations:

  1. Google Business Profile - Still the most important for local
  2. Review platforms - Yelp, industry-specific sites
  3. Local directories - Consistent NAP data across citations
  4. Your website - Schema markup, location pages

The new considerations:

  • Review sentiment analysis - AI reads and understands review content, not just star ratings
  • Service clarity - AI needs to know WHAT you do, not just WHO you are
  • Location specificity - City and neighborhood level detail matters

Why your competitor might be winning:

Probably has more consistent data across platforms, more reviews with specific service mentions, or better service area definitions. AI systems can’t verify “best” so they rely heavily on these signals.

RS
RestaurantOwner_Sofia Restaurant Owner · January 9, 2026

Restaurant owner here. I’ve been obsessing over this for months.

What I discovered:

When people ask AI “best Italian restaurant in [my city]” - the responses pull heavily from:

  • Yelp reviews and descriptions
  • Google reviews mentioning specific dishes
  • TripAdvisor ratings
  • Local food publication mentions

What moved the needle for us:

  1. Encouraged specific reviews - Not just “great food” but “the carbonara was authentic and the wine list is impressive”
  2. Updated all descriptions - Made sure our cuisine type and specialties were consistent everywhere
  3. Got local press coverage - Featured in “best of” lists from local publications
  4. Menu structured data - Added schema for menu items on our website

The result:

We went from not appearing in AI recommendations to showing up consistently for “Italian restaurant [city]” queries.

The specific review content seems to matter a lot. AI reads the actual text, not just the stars.

HJ
HomeServices_Jake · January 9, 2026
Replying to RestaurantOwner_Sofia

The specific review content point is huge for home services too.

We started asking customers to mention the specific service in reviews. “Emergency water heater replacement” vs just “great service.”

AI seems better at matching specific service needs to businesses when the reviews mention those services explicitly.

Made a bigger difference than I expected.

RL
RetailStore_Linda Boutique Owner · January 8, 2026

Retail boutique perspective. Here’s what’s weird:

For general queries like “clothing stores in [city],” AI mostly recommends national chains. Local boutiques rarely appear.

BUT for specific queries like “vintage clothing [city]” or “sustainable fashion boutique [city]” - we show up.

The lesson:

Local businesses probably can’t compete with big brands for general category queries. But we CAN win for specific, niche queries.

What I optimized for:

  • Made “vintage” and “sustainable” prominent in all my profiles
  • Created content around our specialization
  • Got listed in niche directories (sustainable fashion, vintage, etc.)

If you’re a local business competing with chains, lean into what makes you different and make sure AI understands your niche.

ST
ServiceBiz_Tony · January 8, 2026

HVAC company owner. Something I noticed:

AI recommendations seem to favor businesses with clear service areas defined.

I updated my Google Business Profile to list specific cities and neighborhoods I serve. Started appearing in AI responses for those specific locations.

Before, I just had my main city listed. Now I have all the suburbs and neighborhoods spelled out.

Theory: AI systems need explicit location data to confidently recommend. Vague service areas = less confident recommendations.

LE
LocalSEO_Expert_Amanda Expert · January 8, 2026
Replying to ServiceBiz_Tony

This is exactly right. AI systems don’t infer - they need explicit signals.

Service area best practices for AI visibility:

  1. Google Business Profile - List all cities/areas you serve explicitly
  2. Website - Create location pages for each major service area
  3. Directory listings - Update service areas consistently everywhere
  4. Schema markup - Use areaServed in your LocalBusiness schema

AI can’t assume you serve neighboring cities. You need to tell it explicitly. The businesses that spell out every location they serve get recommended more broadly.

AC
AutoShop_Carlos Auto Repair Shop Owner · January 8, 2026

Auto repair shop here. Reviews have been everything for AI visibility.

We have 800+ Google reviews and respond to every single one. We also have 300+ Yelp reviews.

When I test AI queries like “mechanic for BMW in [city]” - we appear and cite our review count and rating.

The investment in reviews pays off twice now:

  1. Traditional Google ranking
  2. AI recommendation inclusion

If you’re not actively building reviews, you’re missing both channels.

One thing I’ve noticed: AI seems to quote specific reviews sometimes. The more detailed and positive your review content, the better you look in AI responses.

SM
SalonOwner_Michelle · January 7, 2026

Hair salon perspective. Super competitive local market.

What differentiated us in AI results:

  1. Specialty services highlighted - We do curly hair specialists. Made this prominent everywhere.
  2. Stylist profiles - Individual profiles for each stylist with their specialties
  3. Before/after photos - Caption them with specific service names
  4. FAQ page - Common questions about our services with specific answers

When someone asks AI “curly hair specialist [city]” - we show up because we’ve made that specialty explicit everywhere.

Generic salons trying to be everything to everyone don’t appear for specific queries. Specialization wins.

C
ContractorMike · January 7, 2026

General contractor. Tested something:

Asked ChatGPT and Perplexity the same question: “Who should I hire for kitchen remodel in [my city]?”

Got completely different recommendations. ChatGPT seemed to pull from different sources than Perplexity.

Implication:

You can’t just optimize for one AI platform. Need to be visible across the sources that different AI systems use.

Google presence alone isn’t enough. Houzz, HomeAdvisor, BBB, industry associations - they all matter depending on which AI someone uses.

LM
LocalBizOwner_Marcus OP Owner, Home Services Company · January 7, 2026

Amazing insights from everyone. Here’s what I’m taking away:

AI local visibility is mostly traditional local SEO done really well:

  • Complete, consistent data across all platforms
  • Strong review profile with specific service mentions
  • Clear service areas explicitly defined
  • Schema markup for local business

The new twists:

  • Niche specialization matters more (AI can match specific needs)
  • Review content (not just ratings) gets analyzed
  • Multiple platforms matter (different AIs use different sources)
  • Explicit beats implicit (spell out everything)

My action plan:

  1. Audit and complete all directory listings with consistent NAP
  2. Update service area definitions everywhere
  3. Encourage reviews mentioning specific services
  4. Add LocalBusiness schema to website
  5. Set up Am I Cited to track AI visibility
  6. Test across different AI platforms monthly

The good news: this is all stuff we should be doing anyway. AI visibility seems to reward doing the basics exceptionally well.

SR
SmallBizCoach_Rachel Small Business Consultant · January 7, 2026

One more thing to consider: AI search is still early for local.

Most local searches still happen through Google Maps and traditional search. But the trend is clear - more people are asking AI for recommendations.

My advice for local businesses:

Don’t abandon traditional local SEO for AI optimization. Do both. They’re largely the same tactics anyway.

The businesses that nail the fundamentals now will be well-positioned as AI search grows. Think of it as future-proofing your local visibility.

LE
LocalSEO_Expert_Amanda Expert · January 6, 2026
Replying to SmallBizCoach_Rachel

Exactly right. I tell clients:

Optimize for Google. Benefit from AI.

The core work is the same. Complete profiles, consistent data, strong reviews, clear service definitions.

If you do that well, you’re optimized for both traditional local search AND emerging AI recommendations.

The businesses struggling with AI visibility are the ones who neglected local SEO fundamentals. It’s catching up with them.

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Frequently Asked Questions

How do local businesses appear in AI search recommendations?
AI systems pull local business data from Google Business Profile, Yelp, industry directories, and review platforms. Businesses with complete, consistent information across these sources, strong reviews, and clear service areas are more likely to be recommended for local queries.
What's most important for local AI visibility - reviews or structured data?
Both matter, but reviews may have more immediate impact. AI systems use review sentiment and volume as strong trust signals. However, structured data (NAP consistency, schema markup, complete GBP) enables AI to understand and accurately recommend your business. The combination is most effective.
Do 'near me' searches work with AI assistants?
AI systems struggle with precise location awareness compared to Google Maps. They can recommend businesses for named cities or regions, but hyper-local ’near me’ queries often default to traditional map-based search. Local businesses should optimize for both named location queries and traditional local SEO.
How long does it take for local SEO changes to affect AI visibility?
Changes to Google Business Profile and major directories can affect AI recommendations within 2-4 weeks as AI systems re-crawl these sources. Review accumulation is ongoing. Schema markup changes may take longer (4-8 weeks) to be fully reflected in AI responses.

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