Google AI Overviews: Impact on Local SEO Strategy

In May 2023, Google began rolling out AI Overviews, transforming how search results are displayed and consumed. These generative AI-powered summaries appear at the top of certain search results, providing quick, synthesized answers based on multiple sources.

While helpful to users, this shift is disrupting traditional SEO, especially for local businesses. If your Local SEO strategy still focuses only on the 10 blue links or the map pack, you may be losing visibility.

This post explores how AI Overviews work and the specific ways they impact Local SEO, plus actionable tips to adapt and thrive.

🤖 What Are Google AI Overviews?

AI Overviews (previously called Search Generative Experience or SGE) are rich, AI-generated responses that appear at the top of search results for queries Google determines are complex, exploratory, or benefit from a summary.

They typically include:

  • A few paragraphs of AI-generated text
  • Source links (attribution)
  • Follow-up suggestions (“Ask a follow-up”)
  • Contextual visuals (in some cases)

This experience is now rolling out more broadly in the U.S. and will expand globally throughout 2025.

📌 How AI Overviews Affect Local SEO

1. 📉 Fewer Clicks for Map Pack Listings

If an AI Overview answers a local query (e.g., “best plumber in Austin”), users may not scroll to the map pack or website listings, reducing organic traffic and GMB visibility.

2. 🔍 Less Real Estate for Traditional SERP Results

AI Overviews push traditional search listings down the page, making ranking #1 less impactful than before.

3. 🧠 Google Is Relying More on Structured, Trustworthy Content

Sites featured in AI Overviews tend to have:

  • Clear topical authority
  • Trust signals (E-E-A-T)
  • Well-structured content with schema markup
  • Fresh, localized information

💡 Opportunities for Local Businesses

While AI Overviews limit exposure for some businesses, they also create new opportunities — if you adapt.

✅ 1. Rank as a Source in AI Overviews

Google cites sources in Overviews. Ensure your site:

  • Answers user intent directly
  • Uses FAQ format
  • Includes local references
  • Is structured clearly with headings and lists

💡 Tip: Optimize service pages with questions like “Why choose a [your city] plumber?” or “Best affordable dentist in [ZIP code]?”

✅ 2. Focus on Long-Tail, Conversational Keywords

AI Overviews favor complex or conversational queries. Updating your content to include natural language phrases improves your chances of being pulled into responses.

✅ 3. Enhance Google Business Profile (GBP)

Though not yet shown directly in AI Overviews, your GBP still influences local visibility:

  • Keep info accurate and keyword-rich
  • Encourage recent reviews
  • Add images, services, and updates

✅ 4. Add Structured Data to Your Website

Schema.org markup helps Google interpret and cite your site more accurately. Implement:

  • LocalBusiness schema
  • Service schema
  • FAQ schema
  • Review schema

🧪 Case Example: Local Bakery SEO Before & After AI Overviews

FactorPre-AI OverviewPost-AI Overview
SERP Rank#2 on GoogleStill #2
Clicks from OrganicHighDropped by 30%
AI Overview Inclusion❌ Not featured✅ Added FAQs and structured content
Clicks from AI Source Link0+12% new traffic
Conversion Rate3.4%4.6%

💬 “We updated one services page to include more conversational answers and FAQs — a week later we were referenced in the AI Overview for that query.”

— SmartSitesAI Client, Chicago

🧭 What Should You Do Now?

  1. Audit your top pages — Are they answering questions clearly?
  2. Update your service pages — Add local keywords, FAQs, and trust signals.
  3. Implement schema markup — Especially FAQ and LocalBusiness.
  4. Monitor new AI-driven SERPs — Search your brand and service queries regularly.
  5. Avoid AI-blocking robots.txt unless you have privacy concerns.

🚀 Final Thoughts

Google AI Overviews are changing the SEO game — especially for local businesses. While some visibility may shift away from the classic SERP, being cited within AI summaries is now the new “Position Zero.”

At SmartSitesAI, we specialize in creating AI-optimized, Local SEO-ready websites designed for today’s evolving search landscape.

📞 Want to Stay Visible in AI Search?

Let’s future-proof your business.

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