AI Assistants Choose Local Businesses

AI assistants are changing how people search for local businesses. Instead of simply giving users a list of options and leaving them to compare businesses themselves, tools such as Google’s AI features can now assess different options and present a much shorter list of recommendations.

Google says its AI search features are designed to handle more complex questions that involve research, comparisons and multiple searches. This means a customer looking for a restaurant, tradesperson, solicitor or another local service may increasingly rely on an AI assistant to decide which businesses are worth considering.

Being Visible Is Only the First Step

For local businesses, appearing in search results is still important, but being visible does not necessarily mean being recommended by an AI assistant.

Business listings, reviews and online reputation can all influence whether a company is considered when an AI system produces a local recommendation. Accurate information across business profiles and other online sources is therefore becoming increasingly important.

A business may have strong traditional search rankings but still be overlooked when an AI assistant narrows several options down to just a few recommendations.

How Google Finds Businesses for AI Answers

Google says its AI search features use many of the same ranking and quality systems as traditional Search.

One of the techniques involved is retrieval-augmented generation (RAG), also known as grounding. This allows Google’s systems to retrieve relevant information from its Search index before generating an answer. The resulting response can then include links to the pages used as supporting sources.

Another technique is query fan-out. Instead of relying on a single search, Google’s systems can run several related searches at the same time to gather information from a wider range of sources.

For local businesses, this means important information needs to be available on pages that Google can crawl and understand.

For example, if someone asks an AI assistant to recommend a quiet restaurant for a business lunch, information about the restaurant’s atmosphere, opening hours, location and services needs to be clearly available somewhere online.

Keeping this information consistent across the business’s own website, Google Business Profile and other important listings can also help reduce the risk of conflicting information being used.

AI Recommendations Are Becoming More Selective

Traditional local search often presents users with a long list of businesses. AI assistants can reduce that list considerably.

Research from Uberall, for example, found that its quick-service restaurant benchmark typically returned between three and five recommended brands for a query.

While this is only one study covering one sector, it highlights an important change. Businesses are no longer simply competing to appear on the first page of search results. They may also be competing to become one of the few options an AI system decides to mention.

Being eligible for consideration does not guarantee a recommendation, but accurate listings, positive reviews, a strong reputation and consistent business information can all help establish credibility.

What Search Console Can Tell Businesses

Google has introduced a Generative AI performance report in Search Console, although the feature is still being rolled out.

The report can show when links to a website appear within Google’s generative AI features. Data can be broken down by factors such as page, country, device and date.

However, there are still important limitations.

The report does not show the exact query that triggered an AI impression. It also does not reveal whether a business was actually recommended or simply appeared as one of the sources supporting an answer.

It only covers Google’s own AI features, meaning businesses cannot use Search Console to see how they are being represented by ChatGPT, Perplexity or Claude.

Measuring AI Visibility Is Still Difficult

Businesses are still developing ways to monitor how often they appear in AI-generated recommendations.

One approach is to create a fixed list of local search questions and regularly test them across different AI assistants. Businesses can then record which companies are mentioned and how their visibility changes over time.

However, these results are not always consistent. AI responses can change depending on the wording of the question, the user’s location, the timing of the search and the wider context of the conversation.

Another option is to monitor referral traffic from AI assistants through analytics platforms. This can show how many people visit a website after clicking through from an AI-generated answer.

The drawback is that this only measures users who click. It does not capture people who see a recommendation but decide not to visit the business’s website.

Give AI Systems Clear Information to Use

Google’s guidance for AI search highlights several basic areas businesses should focus on.

First, websites need to remain accessible to Google’s crawlers. Businesses should also make important information available as readable text rather than relying heavily on images or inaccessible website elements.

Structured data can help search engines understand information about a business, provided it accurately reflects what is visible on the page.

Business Profile information should also be kept up to date.

Details such as opening hours, services, location and service areas should be clearly stated on the website and match information published elsewhere.

This becomes particularly important because AI systems can also use third-party sources. An outdated directory, old article or inaccurate review could potentially influence how a business is described.

Providing clear and consistent information directly from the business gives search systems another reliable source to work from.

AI Does Not Need Special Content Files

There are also some misconceptions about optimising websites for AI search.

Google has confirmed that it does not use files such as llms.txt as part of its Search ranking systems. Businesses also do not need to completely restructure their websites into tiny content sections simply because AI systems are now involved in search.

The basics remain important: useful information, accessible pages, accurate business details and content that genuinely answers the questions customers are asking.

AI Agents Could Go Further

The changes may become even more significant as AI assistants move beyond recommendations and start completing tasks.

Google describes AI agents as systems that can carry out actions for users, such as comparing options or making bookings.

This means a local business website may eventually need to be easy not only for customers to use, but also for AI agents to navigate.

Google says browser-based agents may interpret rendered pages, the website’s DOM and its accessibility tree. This makes website usability and accessibility increasingly important.

A booking button that does not have a clear label, poorly structured forms or important contact information contained only within an image could potentially create problems for both users and automated systems.

For local businesses, a straightforward booking or ordering process could therefore become just as important as having accurate business information.

What Local Businesses Should Focus On

Customers asking an AI assistant for a recommendation may now receive a handful of selected businesses rather than a long list of search results.

That changes the nature of local SEO. Businesses need to think beyond simply ranking well and consider whether their online presence gives AI systems enough accurate information to understand what they offer.

Google’s reporting tools are still developing, and there is currently no reliable way to see exactly why one local business is recommended over another.

For now, businesses should focus on the fundamentals:

• Keep business listings accurate and up to date.
• Make sure information is consistent across different websites.
• Maintain a strong and genuine review profile.
• Clearly explain services, opening hours and locations.
• Make important information available as readable website content.
• Ensure websites are accessible to search engines and users.
• Keep booking and enquiry systems simple and functional.
• Monitor how the business appears in AI-generated recommendations where possible.

AI assistants are increasingly taking on the comparison work that customers previously did themselves. For local businesses, the challenge is no longer just getting found in search — it is providing enough reliable information and trust signals to become one of the businesses an AI assistant chooses to recommend.