How Google’s AI Overviews Are Changing Local Search (And What Businesses Must Do Now) 
How Google’s AI Overviews Are Changing Local Search (And What Businesses Must Do Now) 

Date Posted: January 19, 2026

Google is rolling out AI-generated search overviews that are beginning to replace the traditional Local Pack (map + 3 listings) on many local searches. This change is already impacting business visibility, website clicks, and phone calls. 

According to Search Engine Roundtable, Google is testing AI Overviews that sometimes fully replace the Local Pack, causing major drops in impressions and engagement for some businesses. 

This marks a major shift in how local customers find businesses — and why local SEO strategies must evolve.

What Changed in Local Search 

Historically, when someone searched for a service like “plumber near me” or “dentist in Dallas,” Google showed a map with three local businesses at the top of the page. 

Now, Google is testing AI Overviews that summarize answers and recommendations directly in search — often pushing the Local Pack down or removing it entirely. 

This means: 

  • Fewer businesses appear at the top of search 
  • Fewer clicks go to websites 
  • Fewer calls and direction requests happen from Google 

Some business owners are already reporting visibility drops of 40–60%. 

Why This Matters for Local Businesses 

If your business relied on ranking in the Local Pack for leads, this change directly affects: 

  • Website traffic 
  • Phone calls 
  • Walk-in visits 
  • Booking inquiries 

Even businesses ranking #1 in Maps may now be hidden behind AI answers. 

Google’s AI is now deciding which businesses to mention, summarize, or recommend — instead of simply listing the top three. 

How Businesses Should Adapt 

1. Optimize for AI Understanding 

Google’s AI pulls data from multiple sources, not just your website. Businesses must ensure consistency across: 

  • Google Business Profile 
  • Yelp and review platforms 
  • Industry directories 
  • Social profiles 

2. Strengthen Review Authority 

AI prioritizes trusted businesses. More high-quality reviews improve credibility and visibility. 

3. Publish Helpful Local Content 

Content answering common customer questions helps AI understand your expertise and services. 

4. Track More Than Rankings 

Businesses should monitor: 

  • Calls from Google 
  • Direction requests 
  • Website clicks 
  • Search impressions 

Traffic drops may now reflect AI changes — not ranking loss. 

The Future of Local Search 

AI-powered search is expanding rapidly. Businesses that adapt early will gain an advantage as competitors struggle with declining visibility. 

Local SEO is no longer just about ranking — it’s about being trusted by AI. 

Sources & Citations 

Search Engine Roundtable — “Google AI Overviews Replace Local Pack & Businesses Report Drops”   

https://www.seroundtable.com/google-ai-overview-local-pack-drops-40773.html