Google AI Overviews: What Local Businesses Must Know (2025)

If you own a small business, chances are you depend on customers finding you through Google. In 2025, Google is changing how search results look with Google AI Overviews—AI-generated summaries that show up at the very top of many search pages. These summaries answer users’ questions right away—sometimes without them ever needing to click a link.

For those following updates in local search trends and SEO best practices closely, this shift is significant. A recent study found that in March 2025, nearly 13% of Google searches in the U.S. showed AI Overviews, up from just 6.5% in January—and even Google reports that the number of searches has risen by about 10% for queries that trigger these summaries. In simple terms: people are searching more, but not necessarily clicking more.

What Are AI Overviews?

AI Overviews gather content from many websites and provide a unified answer directly in the search results. Instead of a list of page links or a map of local businesses, you might see a short summary with a few sources listed—for example: “Best pizza places downtown” followed by 2–3 brief recommendations drawn from multiple websites.

This differs from featured snippets that pull a single answer. AI Overviews provide a broader perspective, but they can reduce visibility—since many users may not scroll further after seeing a quick answer.

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Why This Matters for Local SEO in 2025

Here’s how AI Overviews are changing the search game:

  1. Fewer clicks on traditional search listings
    Since Google gives answers immediately, fewer people scroll to find results. For local businesses, this can mean less traffic—especially for informational searches (“best barbershop near me”) .
  2. Potential new exposure from citations
    If AI Overviews cite your website, you’re still getting traffic. That mention can drive click-throughs from people who want more detail. This looks different than ranking first organically, but it offers a valuable alternative path
  3. Content needs clarity and credibility
    Google’s AI looks for accurate and well-structured information. Simple, clear answers rated as expert or trustworthy are more likely to be cited. This means sites with surface-level or fluffy copy are at risk.
  4. Local packs still matter—but not enough
    Even if your business shows in local map listings, the AI Overview might display first. Searches without location names could trigger AI Overviews instead of a map. In those cases, simply appearing in the map isn’t enough.
  5. Proximity matters—but less than before
    Research shows that while being physically close helps your chances of showing up, content quality plays a stronger role. AI considers both location and trustworthiness.
  6. Rankings are less predictable
    AI Overviews can change the visibility pattern for local businesses based on query phrasing and user location—even slight variations may affect whether your business appears in a summary.

Overall, the rise of AI Overviews is more than a design change—it’s a new model of search. It doesn’t just present links; it presents answers. That means SEO today is about providing answers—not just ranking well.

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How to Update Your Local SEO Strategy

Here’s what local business owners should do to stay visible:

1. Speak clearly to everyday search language

AI understands regular conversation. Include Q&A content or FAQ style pages (e.g., “What’s the cost of a full hair color in Boston?”). By matching search patterns, you can increase your chances of being cited.

2. Organize your content for quick scanning

Use headings, lists, and concise paragraphs. AI reads in small chunks. If your content is clear and easy to skim, Google is more likely to extract it correctly.

3. Include your location naturally

Mention your city or neighborhood in content and FAQs (e.g., “dog groomer in Austin neighborhood X”). This shows local relevance and can help your chances in local queries.

4. Show credibility—E-E-A-T matters

Highlight experience, staff bios, certifications, positive reviews, and awards. Use structured data markup for your business information and reviews. This gives AI solid proof that you’re a reliable source .

5. Create helpful, specific content

Go beyond “About us” pages. Write deep explanations to common questions (“How do I prevent hardwood floors from scratching?”). If your content answers questions, you’re more likely to be cited .

6. Use schema markup

Apply LocalBusiness schema and FAQ schema to boost search engines’ comprehension of your content. Though it doesn’t guarantee a mention, it supports the data Google’s AI uses .

7. Monitor your search presence

Check how your business appears for searches with AI Overviews on both desktop and mobile. Look at citation quality and adapt by improving content if competitors are getting more mentions.

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8. Maintain a strong Google Business Profile

Keep your hours, services, photos, and posts updated. Encourage reviews. Your GMB profile is still a top local signal and source of info even if AI is answering some queries.

What This Change Means in Real Terms

AI Overviews are designed to give quick answers—so many users may not click further. But you can still get highlighted as a reliable source. The result: less overall traffic, but potentially more engaged visitors when they do click.

Majors like news outlets have seen traffic declines up to 50%, spurring them to lean more into subscriptions and newsletters. Local businesses might not have that scale, yet. But the main lesson is this: you’ll likely get fewer casual visits, but those who do click are more qualified.

One SEO platform reported that clicks coming through AI citations tend to have higher engagement metrics—more time spent on page and stronger conversion behavior.

The Takeaway

The arrival of Google AI Overviews is a shift in search behavior—users get instant answers and may not click further. For local businesses in local SEO 2025, this means the goalposts have moved:

Old SEO Goals Local SEO 2025 Priorities
Rank #1 in organic listings Be cited in AI Overviews
Get mentions in local packs Provide clear, helpful answers to questions
Gather backlinks Build trust via structured data & credibility
Drive general traffic Attract fewer, but more engaged clicks

SEO is still useful—just different. Quality local content, strong business listings, and clear question-and-answer pages can help your business stay visible—even when AI is reshaping search results.

Small business owners who adapt to these shifts now will continue to reach new customers as Google’s search engine changes. If you’re exploring how to align your strategy with the latest local SEO and digital marketing practices, staying informed and working with experienced professionals can make all the difference.

Roberto

GlowTechy is a tech-focused platform offering insights, reviews, and updates on the latest gadgets, software, and digital trends. It caters to tech enthusiasts and professionals seeking in-depth analysis, helping them stay informed and make smart tech decisions. GlowTechy combines expert knowledge with user-friendly content for a comprehensive tech experience.

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