How AI in Google Local Search is Transforming Local Businesses

Introduction to AI in Google Local Search

A local search uses Google to find businesses, services, or products within a specific geographic area. Local search results are geared toward showing users nearby options that meet their search criteria, and these results are often displayed in a “Local Pack” or “Map Pack” at the top of search results, especially on mobile devices.

Google’s shift towards AI-powered search algorithms

Google has been under pressure to integrate AI into its search results. Competitors such as Microsoft’s Copilot, Perplexity.ai and the newly announced SearchGPT have been drivers for Google to fine-tune and make their Gemini suite of AI tools live.

Google has recently released its Gemini-powered generative artificial intelligence (AI) overviews in Australia and 150 other countries around the world. If we believe the marketing speak, Gemini AI promises to help you find what you are looking for faster than ever.

One area however that AI has been influencing, which is often overlooked, is local search.

Why AI in local search matters to businesses, especially small and medium-sized enterprises (SMEs)

Google Gemini’s AI Overviews intersect local search results and AI, providing a powerful new approach for local businesses to connect with their communities.

The Role of AI in Google Local Search

Google’s AI algorithm leverages machine learning to better understand search intent to personalise local search results based on user behaviour, location (or proximity to the business), search history, the time of the day and also the context of searches. Natural language processing (NLP) is also used in search queries to better match local businesses with their relevant audiences.

Impact on Local Business Visibility

AI local search is a significant opportunity for small businesses, helping them compete with larger businesses that have greater resources. AI also provides additional opportunities for businesses to personalise their online presence to be more relevant to the local community.

Reviews and Sentiment Analysis

AI provides the ability to analyse and rank reviews based on the quality, relevance, and sentiment of the user. Google’s Gemini uses positive and negative reviews to impact local rankings as part of sentiment analysis.

Challenges of AI in Local Search for Businesses

There are also challenges as a result of Google’s AI adoption. Primarily, this comes from increased competition in local search, as AI algorithms prioritise more accurate and detailed local listings. This means local SEO must be a priority for local businesses that wish to compete effectively in local search. At Evolocity, we are seeing an increase in local SEO enquiries as businesses are aware of the advantages of local search.

How AI Enhances Search Engine Algorithms

To explain how AI enhances the Google local search algorithm, here is an example of a local search in Google that I often make: “dog friendly café near me”:

AI local search

From the above search results, Google is using their AI algorithm & machine learning to list nearby cafes but is using AI and machine learning to scour reviews and aggregate information. This process identifies only cafes where people have mentioned that the venue accepts dogs and/or is friendly in reviews.

Practical Steps for Businesses to Leverage AI in Local Search

Ensure you have a (business) website

To succeed in local search, ensure you have a website for your business. The website should contain information about the goods or services your business provides, as well as the name, address and phone number of your local business.

Build quality content on topics that are relevant to local audiences

Quality content is important to demonstrate that you are indeed a local expert. I recommend blogs and other informative content be produced for your website and also used in your Google Business Profile when relevant.

Ensure you have claimed (and optimised) your Google Business Profile

The Google Business Profile (aka Google My Business) is a free directory type tool that allows businesses to list their businesses to be found in Google’s local search pack and maps listings. This platform also allows customers to leave reviews for your business and allows customers to message your business and ask questions.

Optimise for Questions that your customers are asking

You should list the frequently asked questions that customers ask in person, on your website and via your Google Business Profile. Perform additional searches in Google in the “People also asked” section to see additional questions that searchers are seeking the answers to when looking for businesses such as yours.

Highlight local expertise

It’s imperative that you identify your business’ local expertise in the community, including the suburbs and areas that you service and how you connect with the community that you operate in.

Ensure all information is accurate

AI in local search favours Google listings that contain complete & accurate information. Businesses that update their profiles regularly with current contact information, hours of operation, and location-specific offerings tend to rank higher in local search. As a result, the accuracy of details such as operating hours, services offered, and menu items has become crucial.

Gather & respond to reviews

It’s important to ask customers to leave a review of the interaction they have with your business and respond to these reviews. As per the example I referenced above, reviews are heavily used by AI to help searchers find what they are looking for.

The Future of AI in Local Search

AI, and in particular Google Gemini has many benefits to offer local businesses. These include more accurate and feature rich local search results and the ability to compete with larger and more established businesses should not be overlooked. There are risks, however, with competitors taking advantage of Google Gemini’s new AI Features.

I would recommend businesses stay proactive, adaptable, and engaged with AI trends to remain competitive in the changing AI landscape by implementing the recommendations listed previously.

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