AI Assistants Pick Local Businesses

AI assistants are changing how people search for local businesses. Instead of browsing several results and comparing options themselves, customers can now ask an AI tool for a recommendation and receive a much shorter list of businesses to consider.

This means local businesses need to think beyond traditional search rankings. Being visible, trusted and accurately represented across the web can influence whether a business is considered when an AI assistant responds to a local search.

Local Search Is Becoming More Selective

Traditional local search gives users a range of businesses to explore. A person might search for a restaurant, tradesperson or estate agent, compare several websites, read reviews and then decide which one to contact.

AI assistants can take much of that process away from the user.

When someone asks an AI assistant for the best local business for a particular need, the system may assess information from several sources before presenting a small number of recommendations.

Google says its AI search features are designed to help with searches that involve research, comparisons and more complicated questions. For local businesses, this could mean that the customer sees a recommendation before ever visiting a company’s website.

That makes appearing in the AI-generated answer increasingly important.

Accurate Listings Still Matter

Before an AI assistant can recommend a business, it needs enough reliable information to understand what that business offers.

Business listings, reviews, reputation and consistent company information can all contribute to this.

For example, a restaurant that clearly states its opening hours, location, type of food and services across its website and business listings gives AI systems more information to work with.

The same applies to other local businesses. An electrician should make its services and service areas clear, while a letting agent should provide accurate information about the areas it covers and the properties it manages.

Keeping this information up to date is therefore becoming an important part of local SEO.

However, having accurate listings does not guarantee that an AI assistant will recommend a particular business. It simply gives the system reliable information from which to work.

How Google Builds AI Search Answers

Google says its AI search features are built on many of the same ranking and quality systems used for traditional search.

One important process is known as retrieval-augmented generation (RAG), or grounding. The system retrieves information from relevant pages in Google’s Search index and uses those sources to help create an answer.

Google also uses query fan-out, where an initial question can lead to several related searches. This allows the system to gather information from a wider range of sources before producing its response.

For a local search, this could mean an AI assistant looking at several aspects of a question rather than simply matching a business to one keyword.

For example, a customer might ask:

“Can you recommend a quiet restaurant for a business lunch near me?”

The system may need to consider location, restaurant type, reviews, atmosphere and other information before producing its recommendations.

This makes it important for businesses to provide useful information in a form that search engines can actually access.

Consistency Across The Web Is Important

AI systems can gather information from multiple websites, and those sources may not always agree.

A business might have one set of opening hours on its website and different information on an online directory. An old review or article could also contain outdated information.

When information conflicts, it may become more difficult for an AI system to establish which details are correct.

Businesses should therefore regularly check their website, Google Business Profile and other important directories to make sure details such as:

Opening hours
Address
Telephone number
Services
Service areas
Pricing information
Business descriptions

are accurate and consistent.

The aim is to make it as easy as possible for search engines and AI systems to understand the business.

Search Console Still Has Gaps

Google has introduced a Generative AI performance report in Search Console, giving website owners more information about appearances within AI Overviews and AI Mode.

The report can show AI-related impressions by page, country, device and date.

However, there is still an important limitation: it does not show the exact query that produced each impression.

It also does not tell businesses whether their company was actually recommended or whether their website was simply used as a supporting source.

The data also only covers Google’s own search features. It does not show what ChatGPT, Claude, Perplexity or other AI assistants are recommending.

This makes measuring AI visibility much more difficult than traditional SEO.

How Businesses Can Track AI Visibility

With limited reporting available, businesses are starting to use other methods to understand how often they appear in AI recommendations.

One option is to create a set of important local search questions and regularly test them across different AI assistants.

For example, a business could track questions such as:

“Best estate agents in [area]”
“Who can help me sell my house in [area]?”
“Best builders near me”
“Where can I find a good restaurant for a family dinner in [area]?”

The business can then record which companies are mentioned and how often its own business appears.

Another approach is to monitor referral traffic from AI platforms in analytics. This can show whether people are actually visiting a website after discovering it through an AI assistant.

However, referral data only captures people who click. It will not show customers who saw a recommendation but decided not to visit the website.

Give AI Assistants Useful Information

Businesses should make sure important information is available as clear, readable text on their websites.

Google recommends allowing search engines to crawl important content and ensuring that structured data matches what is actually visible on the page.

Business Profile information should also be kept up to date.

For local businesses, basic information such as opening hours, services and locations should not be hidden inside images or difficult-to-access elements.

For example, if a restaurant offers private dining, that service should be clearly mentioned on the website rather than relying on an image for the AI system to discover it.

The same applies to service areas. If a plumber works across several towns, those areas should be clearly stated on the website and business listings.

What About AI Agents?

AI assistants may eventually do more than recommend businesses.

Google is also developing AI agents that can perform tasks for users, such as comparing options or helping with bookings.

This creates another consideration for local businesses: their websites need to work properly for automated systems.

A booking form that is difficult to use, a telephone number shown only in an image or buttons without clear labels could create problems for both users and AI agents.

Businesses should therefore make sure important functions such as bookings, enquiries and purchases are straightforward and accessible.

What This Means for Local SEO

The way customers discover local businesses is changing.

Instead of being presented with a long list of search results and making the comparison themselves, customers may increasingly receive a small selection of recommendations from an AI assistant.

That does not mean traditional local SEO is no longer important. In fact, many of the fundamentals remain the same.

Businesses should focus on:

Keeping online listings accurate
Maintaining a strong review profile
Providing clear information on their website
Keeping business details consistent across different platforms
Making important content easy for Google to crawl
Using structured data correctly
Keeping opening hours and services up to date
Making booking and enquiry systems easy to use

There is still no clear formula for guaranteeing that an AI assistant will recommend one local business over another.

But as AI becomes more involved in local search, businesses that provide clear, accurate and consistent information will be in a stronger position to be understood and considered when customers ask AI for recommendations.