AI Overviews and Local Search: Why Your Business Is More Protected Than You Think

"AI Overviews are killing organic traffic." "30% of clicks are disappearing." "The end of SEO as we know it."

If you've been reading marketing news lately, you've probably seen headlines like these. And if you run a local business, you might be wondering if you should panic.

Here's the thing: you probably shouldn't.

New research from Local Falcon and seoClarity tells a very different story than the doom-and-gloom headlines suggest. Local businesses are actually in a better position than national brands when it comes to AI Overviews—and the numbers aren't even close.

Let's break down what's actually happening and what it means for your business.

What Are AI Overviews, Exactly?

If you haven't noticed them yet, AI Overviews are Google's AI-generated summaries that appear at the top of some search results. They pull information from multiple sources and synthesize it into a quick answer.

You've probably seen them for searches like "what causes headaches" or "how to remove grass stains." Google shows an AI-written summary, then lists the sources below.

The concern from website owners is obvious: if Google answers the question directly, why would anyone click through to your site?

That's a valid worry for informational content. But here's where local businesses get lucky.

The Panic vs. The Reality

Yes, AI Overviews have surged. seoClarity's Research Grid found a 492% increase in AI Overview appearances during 2025. That sounds alarming until you look at WHERE they're appearing.

For local-intent searches, AI Overviews almost never show up.

seoClarity's September 2025 research found that only 0.01% of local-intent searches trigger AI Overviews. That's not a typo. Less than one in ten thousand local searches shows an AI summary at the top.

Why? Because Google already has a better answer for local searches: the local pack. Those three business listings with maps, reviews, and contact info? They do the job AI Overviews were designed for—giving users exactly what they need without making them dig through search results.

Why Local Businesses Are Protected

The data gets even better when you look at what types of searches trigger (or don't trigger) AI Overviews.

Location-Specific Queries Suppress AI Overviews

Local Falcon's whitepaper analyzed thousands of local business searches and found that adding a location to any query drops the AI Overview appearance rate significantly. Generic searches show AI Overviews 46.1% of the time. Add a city name? That drops to 35%.

When someone searches "plumber Rosemount" instead of "what does a plumber do," they're not looking for information. They want to hire someone. Google knows this and shows business listings instead of AI summaries.

Commercial Intent Is Protected

Here's the breakdown by search intent:

• Informational queries (how, why, what): 58.3% show AI Overviews
• Commercial queries (best, top, reviews): 17.2% show AI Overviews
• Navigational queries (specific business names): 10.5% show AI Overviews

When someone's ready to buy, AI Overviews stay out of the way. The searches that drive actual revenue—"best HVAC company near me," "top-rated plumber Twin Cities"—rarely get an AI summary blocking the path to your website.

The Local Pack Still Dominates

Google hasn't replaced its local search infrastructure with AI Overviews. The local pack remains the primary result for location-based queries because it works. Users can see ratings, hours, distance, and contact info at a glance. An AI paragraph can't compete with that for local searches.

Proximity Still Matters

One interesting finding from Local Falcon's research: distance-based ranking correlation doesn't exist for AI Overviews the way it does for local pack results. Translation: traditional local SEO tactics (optimizing for proximity, building local citations, getting reviews) still work exactly as they always have for the results that actually matter.

Where You DO Need to Pay Attention

Not every local business gets a free pass. Some categories see higher AI Overview rates:

• Window cleaning: 65% of searches
• Carpet cleaning: 64.6%
• Personal injury attorneys: 62.1%
• Wedding photographers: 61.8%

What do these have in common? They're service businesses where people often search for educational content before hiring. "How to clean carpet stains" triggers AI Overviews. "Carpet cleaners Minneapolis" doesn't.

If your business falls into one of these categories, watch out for:

• "How to" queries related to your services
• "Why" questions about problems you solve
• Long-tail educational content you've created to attract top-of-funnel traffic

That educational content may see reduced organic traffic from AI Overviews. But the commercial searches—the ones that actually lead to phone calls and appointments—remain largely unaffected.

What to Do About It

You don't need to overhaul your local SEO strategy because of AI Overviews. But some adjustments can help you stay ahead.

1. Double Down on GBP Optimization

Your Google Business Profile matters more than ever. With local pack results dominating local searches and AI Overviews staying away, GBP optimization delivers direct ROI. Keep your hours updated, respond to reviews, post regularly, and add new photos.

2. Create Location-Specific Landing Pages

Location-specific queries suppress AI Overviews. Create dedicated pages for each area you serve. "HVAC services Rosemount MN" is more likely to show your local pack listing than trigger an AI summary.

3. Focus on Commercial-Intent Keywords

Shift your keyword strategy toward searches with buying intent. "Best," "top-rated," "near me," and location-specific terms all trigger AI Overviews less often than generic informational queries.

4. Structure Educational Content for Citation

If you publish how-to guides or educational content, structure it so AI Overviews might cite you as a source. Use clear headings, concise answers, and schema markup. If AI is going to summarize your topic, you want your business mentioned in that summary.

5. Monitor Your Keywords

Check which of your target keywords actually trigger AI Overviews. Tools like Local Falcon show whether searches display AI summaries and how your rankings change with and without them. You might find that the keywords you're worried about aren't even affected.

The Bottom Line

AI Overviews are changing search, but not in the ways most headlines suggest. For local businesses, the fundamentals haven't changed:

• Optimize your Google Business Profile
• Build local citations and reviews
• Create location-specific content
• Target commercial-intent keywords

The searches that drive your business—people looking to hire a local company—still work the same way they always have. Google's AI is good at summarizing informational content. It's not replacing the local pack, and it's not stealing clicks from "HVAC repair near me" or "best plumber in Minneapolis."

Is AI Overviews something to monitor? Sure. Is it something to panic about if you run a local business? The data says no.

Keep doing what works for local SEO. The 0.01% of local searches affected by AI Overviews probably aren't the ones paying your bills anyway.

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Related Resources

Looking to improve your local SEO while AI Overviews stay in their lane? Check out these guides:

• Google Business Profile Optimization Guide
• Local Keyword Research for Dakota County
• Link Building Strategies for Local Businesses
• Try Our Free Local SEO Audit Tool