Google AI Mode - What Changes for Local Businesses?

Google has just launched its new AI Mode: a major expansion that introduces a whole new way of interacting with search. Unlike AI platforms like Gemini or ChatGPT, AI Mode is directly integrated with traditional search but delivers results in a more conversational, user-focused format.

For local businesses, this shift means saying goodbye to the familiar map-pack results and welcoming AI-generated summaries that emphasize reviews, ratings, customer experiences, and long-tail, conversational queries.

Structured data, an optimized Google Business Profile, and consistent NAP (Name, Address, Phone) information have become more critical than ever. Manual optimizations and simply "hoping for the best" are no longer enough in Google's AI Mode, which is quickly becoming the global norm.

Let's explore how to get your local business ready for this new era of search.

What Is Google AI Mode?

Google AI Mode is a completely new search experience powered by Gemini 2.5. Instead of displaying a list of links like traditional search, AI Mode delivers full-screen, conversational answers directly to the user. It's designed to replace the classic search results page with AI-generated summaries, interactive responses, and even automated actions.

Here's how it works and why it matters:

1. Deep Search Capabilities

AI Mode can break down complex questions into smaller parts, issuing hundreds of searches in the background to compile a detailed, cited response. This gives users a much more comprehensive answer than a standard search result would.

2. Multimodal Interaction

Users can engage with AI Mode through text, voice, images, and even live video. For example, someone could ask for help fixing a broken chair leg while filming it, and receive real-time guidance. This makes search more interactive and dynamic than ever before.

3. Personalized Results

AI Mode integrates with tools like Gmail and Calendar to tailor answers to the user's context. For instance, if your Gmail shows travel plans to Oregon, AI Mode might suggest restaurants or local attractions relevant to your trip, without you even having to ask for them directly. A real chance for local businesses that we will elaborate on later on in this article!

4. Agentic Tasks

This isn't just about getting information. AI Mode can also take actions on your behalf like finding flights and hotels with more precise booking suggestions, tracking product prices, or setting reminders, turning Google into a more proactive assistant.

What Is the Difference Between AI Mode and AI Overview?

You might already be familiar with AI Overviews! These are also powered by Gemini and appear above the regular search results. AI Overviews have been around for a while, but with so many new AI advancements rolling out, we understand the confusion.

Unlike AI Overviews, which show up as a summary box above traditional results, AI Mode takes over the full screen. It creates a zero-click experience, where the user receives everything they need directly in the AI response, with little or no reason to scroll down or click through to external websites.

But let's quickly clear things up even more and take a look at how AI Overviews differ from the newly launched AI Mode.

Feature	AI Overview	AI Mode
Primary Role	Quick-answer generator for simple queries	Conversational agent for complex problem-solving
Query Handling	Single-turn interactions	Multi-turn dialogues with persistent context
Technical Backbone	Gemini 2.0 with basic RAG	Custom Gemini 2.5 with advanced reasoning chains
Response Depth	2–3 sentence summaries	500+ token analyses with citations and visuals
Position in Search	Top-of-SERP summary (before organic/paid results)	Full-screen interface via dedicated tab or /aimode URL
Interaction	Static output, no follow-up capability	Supports follow-up questions, image/voice inputs
Use Cases	"How to fix a leaky faucet", "Weather in Seattle"	"Plan a 7-day keto meal plan", "Compare Tesla vs. Ford stock"
CTR Impact	Reduces website clicks by 18–34%	Drives 42% higher conversion rates, but reduces total traffic
Data Sources	Knowledge Graph, top 12 organic results, snippets	Real-time web, user data (Gmail, Drive), custom corpus
Personalization	Basic location/device context	Deep personalization, long-term history, cross-platform data
Content Requirements	800–1,200 word articles suffice	Requires 3,000+ word guides, semantic clusters, rich reviews
Platform Presence	Google Business Profile dominance	Multi-platform consistency (Yelp, Apple Maps, etc.)

How Does AI Mode Change Traditional Search?

AI Mode is a separate interface, so for now, traditional search is still available. However, it adds a new layer of possibilities, one that will re-shape how we search. With AI Mode being directly available on the regular Google interface, it makes it easily accessible for the public.

AI Mode will be especially useful for:

• Complex, multi-step questions e.g., "Plan a 7-day Tokyo trip with vegan food and kid activities." → AI breaks it into subtopics and gives one complete, summarized answer.
• Personalized results e.g., "Find a dermatologist in Austin who takes Blue Cross." → AI tailors answers using your location, preferences, and history.
• Finding local businesses e.g., "Pet-friendly cafes near me with vegan pastries." → AI pulls reviews, photos, and info from Google Maps, Yelp, and GBP.
• Learning or research topics e.g., "Explain quantum computing like I'm 10." → AI gives clear, cited summaries — no need to click 10 links.
• Visual or interactive tasks e.g., "Identify this plant from a photo." → AI can analyze images and even generate charts or diagrams.

However, AI Mode will not heavily impact all types of searches. The following areas are likely to remain less influenced by this new advancement:

• Quick fact checks e.g., "How many ounces in a cup?" → Traditional search gives instant answers.
• Image or video browsing e.g., "Funny Monday memes," "DIY YouTube shelf tutorial." → Google Images and YouTube are still faster and better for visuals.
• Real-time news or updates e.g., "Euro 2024 scores." → Traditional search indexes fresh content faster than AI.
• Sensitive or controversial topics e.g., "COVID-19 vaccine side effects." → Users prefer seeing multiple sources to judge for themselves.
• Browsing or shopping with links e.g., "Reddit threads on Intel vs. Ryzen," "Best wireless headphones on Amazon." → People want to explore multiple options and opinions manually.
• Navigational queries e.g. "Facebook login", "booking.com" → There is no need to get a summary or explanation when you want to navigate to a specific website.

Nonetheless, AI Mode marks just the beginning of a new era in search. AI-powered results are set to become the new normal, gradually integrating deeper into every stage of the user journey. As this shift continues, failing to optimize for AI-driven search won't just be a missed opportunity; it will be a costly mistake.

Is AI Mode Just Another Chatbot Like Gemini or ChatGPT?

Valid Question! Is this not just like any other AI system that is already on the market? Not Exactly! Here's Why:

• AI Mode is Built Into Google Search, Not a Separate Product: While AI Mode feels like a chatbot experience (similar to Gemini or ChatGPT), it is directly integrated into the Google Search environment. You access it as a new tab or mode within the familiar Google Search interface, not by opening a separate app or website.
• Conversational, Multimodal, and Deeply Connected to Google's Data: AI Mode uses a custom version of Gemini and is designed for complex, multi-step, and multimodal queries. It leverages Google's real-time web index, Knowledge Graph, and shopping/product data, providing answers that are more deeply tied to Google's search ecosystem than what you get from standalone chatbots.
• Different from Gemini Standalone: Gemini, as a standalone chatbot, can perform web searches and answer questions, but it is not inherently integrated into the Google Search results page or tied to your search history, Google apps, or personalized context unless you explicitly connect them.
• User Experience: AI Mode appears as a new tab or option within Google Search, so you don't have to leave the search page or open a different service. This is different from ChatGPT or Gemini, which you must access separately.
• Purpose and Evolution: Google's stated goal is to eventually merge advanced AI capabilities into the core search experience. AI Mode is an experimental step in that direction, offering a more interactive, exploratory search within the main Google Search product.

How Are Local Businesses Affected by AI Mode?

Let's get straight into it. In Google's AI Overviews, local business results now appear as a list of brief summaries that focus heavily on reviews, star ratings, and specific customer experiences. Typically, four businesses are highlighted, though we've seen examples where up to eight or nine are featured. The link within each summary leads directly to the business's Google Business Profile, not the website, further emphasizing the shift away from traditional click-based traffic.

This new format introduces both challenges and opportunities for local businesses.

On the challenge side, AI Mode has already shown a dramatic impact on traffic patterns. For informational queries like "best brunch spots," websites may see a drop in clicks ranging from 18% to 70%. Another issue is location relevance, AI Mode sometimes recommends businesses nearly 5 miles away, compared to Google Maps' average of 0.3 miles, which could make results less useful for users seeking nearby options. Additionally, businesses that haven't actively optimized their Google Business Profile or third-party platforms like Yelp and TripAdvisor are increasingly being left out of AI-generated results.

The good news? There are real opportunities here, too. Businesses with complete and regularly updated Google Business Profiles, structured data (like schema markup), and keyword-rich reviews (e.g., "pet-friendly patio," "gluten-free menu") are more likely to be cited in AI summaries. AI Mode also favors businesses that answer conversational, long-tail search queries, such as "chiropractor near me with Saturday hours." This means content strategies that focus on FAQs, real customer questions, and natural language can significantly improve visibility in this new AI-driven landscape.

How Can Local Businesses Prepare for AI Mode?

Now that AI Mode is rolling out, the big question is: How do you make sure your business gets featured in AI-generated suggestions?

The truth is, the rules have changed. Traditional local SEO strategies like basic citations and a half-filled Google Business Profile (GBP) are no longer enough. With Google's AI Mode prioritizing detailed, structured, and real-time data, local businesses need to rethink how they optimize their online presence.

Let's walk through the most important areas to focus on and how AI Mode requirements compare to traditional local SEO best practices.

Below you can see a table that compares traditional local SEO to what has now become even more meaningful in order to get mentioned by AI mode!

Optimization Focus	AI Mode	Traditional Local SEO
Structured Data	Mandatory: LocalBusiness schema with priceRange, amenityFeature, etc.	Optional: Basic schema markup (name, address, phone).
Google Business Profile	- 100% attribute accuracy - Real-time updates (e.g., holiday hours) - Structured data, such as menu items, attributes, and amenities gained more weight	- Basic profile completeness - Regular post updates.
Reviews	- Keyword-rich reviews (e.g., "pet-friendly patio," "gluten-free options"). - High volume of positive reviews (4.5+ stars).	- High volume of positive reviews (4.5+ stars). - Keywords in reviews are important to some extent.
Content Strategy	FAQ-driven, conversational content targeting long-tail queries.	Location-specific keywords in meta tags, headers, and body text.
Multi-Platform Presence	Ensure business information (NAP, hours, services, reviews) is accurate and consistent across Google Business Profile, Google Maps, Yelp, TripAdvisor, Apple Maps, niche/local directories and social media; optimize all profiles with rich content and visuals.	Ensure business information (NAP, hours, services, reviews) is accurate and consistent across Google Business Profile, Google Maps, Yelp, TripAdvisor, Apple Maps, and niche/local directories; optimize all profiles with rich content and visuals.
Backlinks	Authority signals from industry associations/local news sites.	Local directory citations and general backlinks.
User Intent	Optimize for complex, multi-step queries (e.g., "best restaurants in Manhattan with gluten-free options").	Target short keywords (e.g., "café near me").

Let's break these points down a bit more!

1. Google Business Profile (GBP) Excellence

Your Google Business Profile is the cornerstone of visibility in AI Mode. It's no longer about simply claiming your profile and filling in a few basics. AI Mode prioritizes profiles that are:

• 100% accurate and up to date (including holiday hours and real-time changes)
• Rich in attributes (e.g., "pet-friendly," "wheelchair accessible")
• Frequently updated through GBP Posts that highlight offers, updates, or events

Where traditional SEO focused on profile completeness, AI Mode demands precision, relevance, and activity.

2. Structured Data Is Now Mandatory

Schema markup is no longer optional. AI Mode relies heavily on structured data to understand what your business offers. Specifically, implement the LocalBusiness schema with details like:

• openingHours
• priceRange
• amenityFeature

This helps AI Mode pull rich snippets and descriptive details about your services, directly into its summary responses. Make sure to validate your markup using Google's Rich Results Test.

Use our free Business Schema Generator and implement the schema on your website!

3. Strategic Review Management

Reviews have always mattered but in AI Mode, the language inside the review is just as important as the star rating. AI summaries often reference user-generated content directly, so encourage your customers to mention specifics like:

• "dog-friendly patio"
• "affordable vegan lunch options"
• "great for group reservations"

In addition, consistently respond to reviews, especially negative ones, to strengthen trust signals (also known as E-E-A-T: Experience, Expertise, Authoritativeness, and Trustworthiness).

4. Content for Conversation, Not Just Clicks

AI Mode is built for natural, conversational search queries. That means your content strategy should move beyond keyword stuffing and start answering real questions people ask. Focus on:

• FAQ-style content
• Long-tail, intent-rich phrases (e.g., "how to choose the best moving company in Dallas")
• Google Posts and business updates tailored to seasonal or timely topics

Don't overlook visuals. AI Mode pulls in images and videos more than ever, especially those uploaded to your GBP.

5. Multi-Platform Presence and Consistency

AI Mode pulls data from across the web, not just from your GBP. Your Name, Address, and Phone Number (NAP) must be accurate and consistent across:

• Google Maps
• Yelp
• TripAdvisor
• Apple Maps
• Facebook
• Industry-specific directories

All profiles should include full descriptions, rich media (photos/videos), updated service lists, and ideally, recent reviews.

Interesting shift: While platforms like Instagram haven’t traditionally been official ranking factors in local SEO, AI Mode is now pulling data from social media as well. This makes it more important than ever to maintain an active and engaging presence on platforms like Instagram. Community interaction and up-to-date content can directly influence how your business appears in AI-generated search results.

6. Earning Trust with Backlinks

Authoritative backlinks still matter, especially those from trusted local and industry-specific sources. Being mentioned on news sites, association directories, or local blogs helps reinforce your business's relevance and trustworthiness in the AI ecosystem.

7. Understand and Match User Intent

While traditional SEO focused on short, generic keywords like "nail salon near me," AI Mode caters to complex, multi-step queries such as:

• "best nail salon near me for group appointments"
• "affordable dog-friendly brunch spot with gluten-free options"

Your online content, reviews, and GBP descriptions should reflect these natural, detailed queries.

How Obenan Prepares You for AI Mode

To be AI-Mode-ready requires now more than ever precise optimizations. It is no longer enough to "half-do" manual updates and hope for the best to happen. Gemini doesn't look at simple facts, it functions as a brain that runs different queries in the background to get a thorough understanding of the situation and offer the best solution(s) to the user.

Obenan's AI Agents optimize your online presence in a way that works. This is how:

• Synchronizes structured data (e.g., hours, services, attributes) across the Google Business Profile and all major directories
• Audits and completes your Google Business Profile for maximum visibility in AI Overviews and Maps
• Creates and maintains listings on platforms like Yelp, TripAdvisor, Apple Maps, and niche industry directories
• Ensures NAP consistency across all platforms to avoid data conflicts that could confuse AI systems
• Publishes AI-optimized content, including Google Posts and business descriptions using long-tail, conversational keywords
• Responds automatically to customer reviews using your tone of voice, improving engagement and trust
• Launches smart review campaigns to collect more positive reviews and redirect negative reviews to private surveys
• Provides location-specific keyword insights and integrates them seamlessly across your digital footprint
• Continuously adapts to AI search changes, ensuring your business stays ahead of the competition in AI-generated results

Get a free local SEO audit on your location and find gaps and opportunities to climb the local visibility ladder all the way to the top!