Google’s rapid rollout of AI-powered features is transforming the search experience and Local SEO is squarely in the crosshairs. One of the biggest shifts in recent months is the introduction of AI Overviews for local searches. This subtle but powerful change is already altering how users discover businesses and how those businesses appear in local results. We are expecting this to decrease the traffic (impressions and actions) to your Google Business Profile. What do the experts say?
In a recent episode of the Near Memo podcast, local search experts Mike Blumenthal and Greg Sterling discussed early sightings of AI Overviews showing up in local queries. What they uncovered could represent a foundational change in how Google surfaces and organises local business data.
What Are AI Overviews for Local?
Traditionally, local searches on Google, like “best coffee near me” or “dentist in Brooklyn”, return a familiar three-pack (the local pack), showing a map and three business listings. That’s been the standard format for years. However, with AI Overviews, Google now presents an AI-generated summary at the very top of the page, sometimes replacing or even pushing down the traditional local pack.
These overviews typically include:
A short paragraph summarising top options
- A thumbnail image
Links to external sources like Yelp or Tripadvisor - Highlighted businesses (sometimes based on unclear criteria)
- A “Dive Deeper in AI Mode” button for expanded results
The AI-generated content isn’t just aggregating local pack data – it’s pulling from a variety of sources and surfacing completely different business listings in many cases.
Here is the AI mode below for the query ”best fish tacos near me”. The AI overview combines the listings and links that you usually see on a SERP in order to generate the following Overview.
AI Mode vs. Local Pack: Different Results
During the Near Memo walkthrough, a search for “best fish tacos near me” (performed from California) returned:
A standard AI Overview listing four businesses, with a featured one getting special attention
A local pack showing different businesses entirely
A Dive Deeper in AI Mode experience with yet another unique set of listings and data presentation
This inconsistency means that Google is now offering three different sets of local results, depending on which view the user interacts with:
- AI Overview
- Traditional Local Pack
- AI Mode (Search Labs)
Even more surprising, AI Mode (available via Search Labs for early testers) reruns the same query but delivers a new layout focused on editorial-style content, forums, and local links, often without reviews, ratings, or photos.
This inconsistency raises critical questions for SEOs and local business owners:
Which version of the results is “real”? Which one do users trust? And how do you rank in AI-generated lists?
What Powers These AI Results?
Behind the scenes, these new results are powered by Google’s Gemini 2.0 model, a large language model (LLM) built to summarise, analyse, and extract information from across the web. But Gemini isn’t deterministic, meaning the same query can return different answers each time, depending on how the AI interprets it.
According to Blumenthal and Sterling, the data sources behind AI Overviews include:
Google Business Profiles
- Yelp, Tripadvisor, Reddit, and Instagram
- E-commerce sites (for product queries)
- Public forums and niche review aggregators
This is a huge departure from the more structured, rules-based system used in the traditional local pack – which is largely driven by proximity, relevance, and prominence.
With AI, Google can prioritise contextual relevance or “editorial flavour,” selecting businesses based on reputation in forums, popularity on Yelp, or content richness – factors local SEOs don’t typically optimise for.
What This Means for Local Businesses
This change isn’t just cosmetic, it has direct implications for visibility, click-through rates, and leads.
Some key takeaways:
1. Local Rankings Are Fragmenting
There’s no longer “one” answer from Google. The traditional 3-pack is just one possible interface. AI Overviews and AI Mode can now return different sets of businesses based on interpretation, not just location.
2. Review Volume and Sentiment Still Matter
AI appears to rely heavily on review content, especially sentiment and descriptive detail. Businesses with detailed, high-quality reviews across multiple platforms (not just Google) will likely be favoured.
3. Multiple SERP Layouts Mean More Confusion
With AI Overviews, local packs, and AI Mode all surfacing different sets of data, Local SEO is evolving fast. While Google Business Profiles still play a key role in feeding Gemini, the variability in SERP layouts means businesses should complement their Maps optimisation with a more holistic local visibility strategy
Suspensions, AI, and the “Black Box” Problem
Another major theme in the episode was the recent spike in Google Business Profile suspensions (GBP Forum) – an issue tied indirectly to AI. As Google introduces more automation and AI-driven moderation, support delays are increasing and more legitimate profiles are getting suspended without clear reasons.
Mike Blumenthal emphasised the risk: “Hands off your GBP for now. Don’t touch anything.”
Changing business hours, categories, or descriptions right now could trigger a re-verification process that takes weeks, if not longer, to resolve. This hints at a broader issue: Google’s AI may be making decisions faster than humans can interpret or correct them.
Is Google Losing Control of its Algorithms?
One of the most striking comments from the episode came from Greg Sterling:
“Google often really doesn’t know what’s going on with its algorithm.”
This isn’t hyperbole. As AI increasingly governs what results show up and which profiles get suspended, Google engineers are often left investigating after the fact – reverse engineering the consequences of AI-powered decisions.
This opacity, also known as the “black box” problem, is problematic for small businesses that rely on clarity and consistency from search.
💡What Can Local SEOs Do Now?
Local search is entering a new, AI-enhanced era, and optimisation tactics must evolve accordingly. Here are some immediate steps:
Diversify Your Review Strategy – Prioritise growing rich, authentic reviews on Google, as they remain central to visibility and trust. At the same time, maintain a presence on relevant industry platforms where your audience is active, to support a broader and more resilient local reputation.
Improve review quality – Focus on prompts that encourage people to mention specific details, experiences, and relevant keywords. Avoid overdoing it, as all reviews should remain genuine and un-incentivised.
Build out your brand footprint – Engage on Reddit, Instagram, and other sources AI may pull from.
Monitor multiple result types – Track how your business appears in AI Overviews, local packs, and AI Mode separately.
Limit profile changes – Until the suspension spike dies down, avoid unnecessary edits to your Google Business Profile.
Final Thoughts: The Future of Local Search?
What we’re witnessing is not just a redesign of Google’s results, it’s a shift in their approach. AI introduces a layer of interpretation between the query and the result. Businesses are no longer just optimising for a map pin – they’re optimising for AI understanding, trust, and relevance.
The good news? With change comes opportunity. Businesses that adapt quickly to this new landscape, focusing on quality content, authentic reputation, and multi-platform visibility, can gain a competitive edge before the AI floodgates fully open.
And for those not yet paying attention: the time to prepare for AI-powered Local SEO is right now.
