AI Search for Local Businesses in 2026

In May 2026, Google announced “A new era for AI Search” when it updated its AI model and made it the new default model for everyone searching Google. It’s designed to let you ask it anything in natural language and then it provides you with the answer. This is considerably different from how Google worked for decades, and has been called “its biggest shift yet toward AI and away from traditional search.”

In short, Google now acts more like a chatbot, similar to ChatGPT or its own Gemini agent. Rather than focusing on giving you a list of links that match your search terms, Google now tries to give you the information right away, based on what it can find online.

From Traditional Search to AI-Powered Discovery

The focus on giving an answer, rather than a list of links, will fundamentally change how people use the internet. If a person searches for a local business (such as a bakery in their neighbourhood), they might get an AI summary that tries to answer their question, rather than links to sites that Google thinks are the most relevant.  

The aim is to get you the information you’re looking for right away, without having to navigate multiple sites or read and interpret information across various pages. Instead, the AI summary gives you an answer in plain language, similar to if you were asking a person for information.

It’s also designed to keep you from scrolling by giving you the information right away. The AI overview appears at the top and you need to scroll down to find organic search results. 

These changes don’t mean local SEO is dead, but they do mean things have changed.

Zero-Click Results and What They Mean for Your Traffic

The way Google is designed in 2026 puts a strong focus on “zero-click” results. This means that users search for something and they’re presented with the answer right away. They don’t have to click on anything, head to another site, or even move down the page. Instead, the information is right there.

This drastically changes how people navigate the web.

The first way it does that is that it can seriously reduce website traffic. If you’re given an answer right away, you’ll be much less likely to scroll down and click links to get to pages. Instead, most searches will probably read the AI overview and then move on, satisfied that they got what they want.

This means you will need to shift your website and internet presence strategy. You can no longer count on someone being directed to your site to read about your local business and decide whether it’s for them. You’ll instead need to shift how you present yourself so your brand answers questions and provides content that aids in decision-making.

What the Google AI Local Pack Means for Businesses

The “local pack” refers to the business listings that have been shown at the top of Google search results for a while. If you type in “restaurant near me” or “best shoe store”, you’ll probably be shown a list of places on a map alongside some local businesses. 

However, if you look closely at the results you get today, you might notice that they’re a bit different than they were even a few months ago. There’s a better chance than ever today that you’ll be given an AI overview of businesses. This is the Google AI Local Pack. 

A few things have changed in this overview. An AI search for local businesses may now only show 1-2 businesses, rather than 3 or more (which was common in the local pack results). The AI pack presents different information as well. It may not show a click-to-call button anymore, and it probably won’t direct you to a website either. Instead, you’ll get an AI interpretation of the business. In short, you’ll receive an AI summary of what Google thinks the business does.

Google is focusing more and more on answering a question directly, not giving users a list of options. Therefore, more and more local searches result in an AI summary of what Google thinks the user needs to know. 

How to Optimize Your Google Business Profile for AI Search

Your Google Business Profile is a major data source for AI-driven local search results. This means it not only has to be updated and correct, but it also needs to contain a lot of information.

Make sure your business profile has your company name and address correctly displayed, that your business hours are accurate, and that you list detailed descriptions of who you are and what you offer. If you’re a restaurant, include your menu. If you offer services, describe them in detail. If you sell products, list them to make sure that Google knows what you have available both in-store and online.

Photos are critical, as is explaining what makes your business special. Remember, people are doing specific searches now, and they want answers. Even if your restaurant has a great patio, it’s less likely to show up when someone searches “Where is a great patio near me?” unless you include that you have outdoor seating in your Google Business Profile.

NAP Consistency Across the Web

NAP refers to your “Name, Address, Phone Number.” Google searches the web to find information on local businesses. If your NAP isn’t consistent, it might not connect all your company’s profiles or trust signals.

Keeping NAP data consistent across all listings improves your chances of being referenced in AI search results. This is because the AI summaries don’t just pull data and information from Google Business Profiles. It also draws from other sites like Yelp and Tripadvisor, as well as social platforms like Reddit and Instagram.

This means you’ll want to ensure your business name, address, and phone number are consistent everywhere they appear online. “Business Inc” and “Business Company” may seem like the same name, but they’re not identical, and this could cause Google to think they’re two different entities.

Reviews, Engagement, and Trust Signals

Google still aims to provide the most trustworthy, useful, and helpful information. The way it’s presented now is just very different. This means there is still a strong focus on reviews and other trust signals.

To see an example, search for a local business. There’s a good chance you’ll now see reviews under the business names. Typical local Google searches now show the business name, the type of business, a star rating, the address, whether the business is open, and a relevant review.

Google needs to verify that the business is real and successful before it will recommend it. That means online reviews matter more than ever today, and they matter all across the web. Yes, you’ll want reviews on your Google Business Profile, but you’ll also want them on Facebook, on your website, and anywhere else they appear.

The more detail in the reviews, the better. A review that gives five stars and says “They were great!” is good. A review that gives five stars and says “This company was able to come to our house in the west end of Toronto quickly and replace our water heater right away” is better. When asking customers for reviews, let them know that the more specific they can be, the more helpful it is for Google to get a clear picture of the business.

Answer Engine Optimization: Local SEO in 2026

The shift from being a “search engine” to an “answer engine” is even more dramatic than you might think. In the past, someone might have found a local toy store by searching “Toronto toy store.” However, today’s AI agents are designed to be conversational. This means users are increasingly likely to phrase their query in the form of a question: “What is a good toy store that’s near my house?”

It’s designed to get you to interact with the agent and ask it more specific questions. With the toy store example above, the request can be even more specific, such as “Where is the best toy store near my house that sells educational toys that would be great for an 11-year-old girl?”

This is a significant change caused by AI local SEO results and the prevalence of AI chatbots. It means that local businesses should shift their thinking from “I need to get people to my website” and towards “I need to give people answers to the questions they may be asking.” 

Your website, social pages, and Google Business Profile should explain who you are, what you do, what you offer, and where you work. The more detail you can provide, the more likely the local AI search results will recommend you. 

How AI Decides Which Local Businesses to Recommend

A major shift is that AI results are becoming significantly more personalized. Search results have had a personal aspect to them for years, but that’s becoming even stronger these days. Another change is that proximity was one of the major factors when showing businesses in traditional listings. The closer a business was, the more likely Google would be to recommend it to you. 

With AI search results, there is now more interpretation than before. It runs a targeted search and tries to match the searcher to a business most likely to meet their requirements, using data from the entire web to inform this decision.

This means Google needs to understand more about your business. It needs to know specifically what you do and where you work. It needs to confirm that you are who you say you are (this is why NAP consistency is so important), and it needs to believe that others had a positive experience with your business. 

What Businesses Should Do Right Now

If you’re looking at this, wondering what you should do now, you’re not alone. AI results and local SEO changes are a big deal for modern businesses. The web today looks and feels completely different from the way it did even just a few years ago.

One of the first things you can do to improve your local search results is to make sure your business is represented consistently across the internet. Your name, address, and phone number must be the same everywhere.

Another thing you can do is ask your customers for honest, detailed reviews. They can post these on Google, social media, or anywhere else on the web. The key is that these must be real reviews by real people that accurately describe your business.

The final step is to clearly and concisely describe what you do and what you offer. Your business profile and website shouldn’t say that you “offer game-changing experiences to delighted audiences”, no matter how exciting that sounds. You’ll be much better off saying you have “interactive games in our Toronto event space that are perfect for birthday parties, company events, and large gatherings.” This is the specific information that is much more likely to be included in local AI search results.

Structuring your website to be clear and easy to navigate (for humans, search engines, and AI agents) is also critical. If it’s easier to go through your site and find out exactly what you do, AI will be able to describe this to searchers better. Eggs Media can help. If you want a modern site redesign that focuses on AI search and user experience, we’re here for you. Let’s talk!