Google ‘AI Mode’ Is Here: What Every Local Business Owner Needs to Know

Google is rolling out AI Mode to all U.S. users – no more waiting lists or Labs sign-ups required. This isn’t just another Google update that tweaks how search results look. It’s a fundamental shift in how people search and find local businesses.

If you’re a local business owner, you need to understand what this means for your visibility, traffic, and customer acquisition. The old rules of local SEO still apply, but the game is changing fast.

What Is Google ‘AI Mode’?

AI Mode is a separate tab in Google Search that creates a full conversation with AI instead of showing you traditional search results. Think of it as ChatGPT built directly into Google, but with access to real-time information about businesses, products, and services.

The technology behind it uses something called “query fan-out” – when you ask a question, AI Mode runs multiple searches simultaneously behind the scenes, then combines all that information into one comprehensive answer.

Here’s the big change: searches are now 2-5x longer than traditional searches. Instead of typing “roofer in Salt Lake City,” people are asking “Find me a highly rated roof repair company in Salt Lake City who can fix a wind damaged cedar shake roof and won’t overcharge me.”

The Local Search Reality Check

Here’s what you need to know right now: AI Mode results don’t consider a searcher’s location as much as a standard search. Local searches like “plumber near me” still work better in regular Google Search.

But this is temporary. Google is gathering data on how people use AI Mode, and they’ll adapt quickly to include more local results as they learn.

Meanwhile, regular AI Overviews (those AI summaries that appear above search results) are already dominating local queries. AI Overviews are currently appearing in 68% of local business-type queries according to a recent Whitespark study.

The writing is on the wall: AI-powered search is becoming the norm, not the exception.

Key Features That Will Impact Your Business

Deep Search Capabilities

For every query, AI Mode in Google runs multiple searches at the same time, and then gives you a detailed summary of the findings, just like other AI tools like ChatGPT. When someone asks “compare the best HVAC companies in Draper with emergency service,” AI Mode will research multiple companies, compare their services, check reviews, and present a comprehensive answer.

Your business either gets included in that research or it doesn’t exist to that customer.

Live Visual Search

Through Project Astra, AI Mode now works with smartphone cameras in real-time. Customers can point their phone at a broken appliance, a storefront, or even a business card and get instant information.

Think about it: someone takes a photo of a stain in their carpet, and AI Mode immediately suggests local carpet cleaning companies with good reviews who handle that type of stain.

Task Automation

This is where things get interesting – or concerning, depending on your perspective. AI can handle basic tasks like purchasing tickets, booking reservations, and scheduling appointments directly within the search interface.

Google has connections with companies like StubHub and Resy to make this seamless. If your business relies on phone calls or website visits for bookings, this could bypass you entirely.

Personalized Context

AI Mode can integrate with Gmail, past searches, and location history to provide personalized recommendations. When someone searches for “good restaurants for tonight,” it might use their hotel booking confirmation to suggest places near where they’re staying.

The Traffic Problem Nobody’s Discussing

Here’s the uncomfortable truth: you won’t see any data from AI Mode inside your Google Search Console, and website traffic coming from AI Mode and AI overviews is often attributed as “direct” traffic. You can’t track clicks, impressions, or see if your business was mentioned in AI responses.

This creates a massive blind spot for local businesses. You might be getting mentioned in dozens of AI responses daily, but you’d never know it.

Making matters worse, research shows that click-through rates drop by an average of 34.5% when AI Overview is present. AI Mode is designed to keep users within Google’s ecosystem, so this problem will likely get worse, not better.

What You Need to Do Right Now

Strengthen Your Foundation

Your Google Business Profile becomes even more important because AI pulls data from it. Make sure every field is completed:

Accurate business hours
Complete service descriptions
High-quality photos
Regular posts and updates
Active review collection and responses

But don’t stop there. AI Mode favors businesses that appear across multiple authoritative sources. 60% of AI citations pointed to third party publishers like industry websites, review platforms, and local directories.

Optimize for Conversational Queries

People are asking longer, more specific questions. Instead of optimizing for “dentist,” you need to think about “family dentist who takes my insurance and has evening appointments.”

Create content that answers these specific, conversational queries. Build comprehensive FAQ sections that address the exact questions your customers ask.

Target Hybrid-Intent Queries

This is critical: AI Overviews are now being shown for nearly all hybrid-intent queries (97%). These are searches that combine information-seeking with local transaction intent.

Examples include:

“Cost of hiring a personal injury lawyer in Draper”
“Average price for roof repair in Salt Lake City”
“Best HVAC companies in Murray, UT that offer financing”

These queries represent customers who are ready to buy but need information first. If you’re not visible in AI responses for these searches, you’re missing high-value prospects.

Prepare for Voice-First Future

With platforms like ChatGPT focusing more on voice conversation, we predict that AI Mode will follow suit. Voice searches will increase, and they’ll be more conversational.

Your content needs to work for spoken queries. Think about how people actually talk when they need your services, not just how they type.

Industry-Specific Implications

The impact varies significantly by industry. Real estate agents emerged as an outlier, with AI Overviews appearing for as much as 50% of local-intent queries.

If you’re in real estate, legal services, or healthcare, AI is already affecting how customers find you. Home services like plumbing and HVAC still see strong traditional local pack results, but that’s changing.

Here are the questions every local business should ask:

How are customers currently finding businesses like mine?
Are phone calls and sales maintaining despite lower website traffic?
What questions does AI answer that used to drive people to my website?

What’s Coming Next

Google isn’t done. They’re rolling out custom charts and graphs for data visualization, enhanced shopping integration with virtual try-on capabilities, and expansion beyond U.S. markets.

More importantly, they’re working on deeper integration with Google’s other services. Soon, AI Mode will connect with your calendar, email, and location history to provide even more personalized results.

The businesses that understand and adapt to these changes early will have significant advantages over those that don’t.

The Smart Approach: Don’t Panic, But Don’t Ignore

Searches like ‘plumber near me’ aren’t expected to go anywhere. Google still needs local businesses to provide value to their users. The search intent remains the same – people still need plumbers, dentists, lawyers, and restaurants.

What’s changing is how they find and evaluate those businesses.

The smartest approach right now is to:

Diversify your marketing – Don’t rely solely on Google for customer acquisition
Focus on direct relationships – Build customer loyalty that bypasses search entirely
Stay informed – This is just the beginning of AI integration into search
Test and adapt – Use AI Mode yourself to understand how customers experience it

Your current local SEO efforts aren’t wasted. They’re evolving. The businesses that built strong foundations with complete profiles, authentic reviews, and quality content will adapt more easily to this new reality.

The Bottom Line

AI Mode represents the future of search, not a passing trend. Local businesses that start adapting now will have competitive advantages over those that wait.

Your customers are already using these tools. The question isn’t whether AI will change how people find local businesses – it’s whether you’ll be visible when they do.

Start by experiencing AI Mode yourself. See how your business appears (or doesn’t appear) in AI responses. Then begin adapting your strategy accordingly.

The businesses that thrive in this new environment will be those that understand AI isn’t replacing local search – it’s transforming it.