What Does AI Mode Mean for Local SEO?

August 13
ai mode local seo

Search engines aren’t what they used to be. Once upon a time, getting your business noticed online meant ranking in the top ten “blue links” on Google.

That was the game. Simple, kind of. But now, with AI becoming a central part of how search results are delivered, the rules are changing fast.

One of the Biggest Shifts? AI Mode

It’s a term that’s starting to pop up more often, especially among SEO professionals. And if you’re a local business owner trying to stay visible online, it’s something you’ll want to understand.

While it comes with its fair share of challenges, it’s not all doom and gloom. In fact, for those who adapt early, AI Mode might even open new doors.

Let’s break down what this means, and what you can actually do about it.

So, What Is AI Mode?

AI Mode refers to search engines, especially Google, using generative AI to answer people’s questions directly on the search results page.

Think of it as Google not just showing you a list of links, but summarising answers for you right at the top, sometimes even before you finish typing.

Google’s own version of this, known as the Search Generative Experience (SGE), is already being tested and rolled out in stages. It pulls information from multiple sources and creates a kind of hybrid answer.

Not copied and pasted, but generated – a summary in Google’s own words.

It’s quick. Convenient. Often helpful.

But it’s also a shift in power. Because when Google starts answering questions for people, fewer clicks make it through to the websites themselves.

Changing How People Search

This new format changes user behaviour in some subtle, and not-so-subtle, ways.

Instead of scanning ten links, users might read one AI-generated summary and move on. It’s faster. It feels efficient.

But for local businesses? That could mean:

  • Fewer clicks to your site
  • Less organic traffic from standard search listings
  • More pressure to appear inside those AI-generated answers—or risk being overlooked altogether

That’s a big deal, especially if you’ve spent years refining your local SEO to rank on page one.

A Quick Recap: What Is Local SEO?

Local SEO is how businesses make themselves discoverable in local searches. It’s not just about keywords; it’s about showing up when someone nearby types “best Thai restaurant near me” or “emergency plumber Brisbane.”

It covers things like:

  • Your Google Business Profile (GBP)
  • Customer reviews
  • NAP consistency (Name, Address, Phone)
  • Location-specific content
  • And, yes – traditional search rankings too

But with AI Mode in play, some of these tactics need rethinking. Not a complete overhaul, but an upgrade.

How AI Mode Is Changing Local SEO

Let’s get into the specifics. Here’s what’s shifting, and what it means for you.

1. Organic Listings Are Getting Pushed Down

The AI summary often appears above traditional listings. That means even if you’re ranked #1 organically, your spot might be buried below a big, colourful box of AI content. And the average user? They may never scroll that far.

2. Your Google Business Profile Matters More Than Ever

AI summaries often pull from Google Business Profiles. That’s good news if your profile is accurate and regularly updated. But if you’ve neglected it (missing hours, old photos, zero reviews, etc.), you’re giving the AI nothing useful to work with.

3. Authority and Trust Are Non-Negotiable

Generative AI favours content it deems trustworthy and authoritative. Google’s been pushing this for a while through its E-E-A-T principles: Experience, Expertise, Authoritativeness, and Trustworthiness. Now it’s baked right into how answers are formed. If your content lacks these signals, it might get skipped over entirely.

4. The Rise of Conversational Queries

People are searching in more natural ways now – asking questions like they would a friend. “Where can I get brunch with a view in Sydney?” instead of “best brunch Sydney.” That subtle change affects how you should be writing and structuring your content.

Are There Any Opportunities in All This?

Yes. Actually, quite a few.

While AI Mode might limit some types of visibility, it also opens up new paths, especially for those who are willing to adapt.

1. Aim for Featured Snippets and AI Summaries

If your content is clear, structured, and genuinely helpful, it stands a chance of being picked up by the AI. FAQs, how-to guides, lists, schema markup – they all help.

2. Hyper-Local Content Still Wins

AI thrives on context. If your business is publishing relevant local content, like posts about neighbourhood events, staff spotlights, or answering specific local questions, you’re feeding the AI what it needs. It’s not glamorous work, but it’s effective.

3. Reviews Aren’t Just Social Proof

Genuine customer reviews help train AI responses. The more detailed and frequent your reviews, the better your business might appear in AI-generated summaries.

4. Brand Recognition Matters More Now

If users are clicking less, brand familiarity becomes everything. A recognisable name, logo, or positive online reputation can influence decisions before someone even visits your website.

What Should You Actually Do About It?

Here are a few practical steps you can start on today:

  • Update your Google Business Profile. Double-check your hours, add fresh photos, and respond to reviews. Don’t let your business go stale!
  • Create better local content. Not longer. Just better. Answer real questions. Be useful. Be relevant to your audience.
  • Use structured data (schema). This helps search engines understand your business and increases your chances of being featured.
  • Track your performance. Keep an eye on Google Search Console. If your click-through rates are dropping, that might be a sign AI Mode is having an impact.
  • Consider partnering with an SEO agency. Especially one that understands the new AI-driven landscape. They can help you stay visible in both traditional listings and emerging AI summaries.

Why an SEO Agency Still Matters (Maybe More Than Ever)

There’s a temptation to think: “If AI is doing all the work, why invest in SEO?”

But here’s the thing – AI doesn’t replace SEO. It just changes how it works.

A good SEO agency doesn’t just chase rankings anymore. They:

  • Optimise content for AI summaries and traditional search
  • Understand how to structure information so it’s useful to both humans and machines
  • Stay ahead of algorithm updates and tech trends
  • Focus on long-term strategy, not quick wins

If your business depends on being found locally, having expert support in your corner can make a measurable difference.

Final Thoughts

AI Mode isn’t a temporary trend. It’s part of a larger evolution in how people search and how search engines respond.

For local businesses, it’s both a challenge and an opportunity. You may need to adjust how you think about visibility. You might need to refresh your content or rethink your keyword strategy. And yes, working with a skilled SEO agency can make navigating this new landscape a lot easier.

But the fundamentals haven’t changed: Be clear. Be helpful. Be trustworthy. If you can do that consistently across your website, your local listings, and your content, AI Mode won’t be a roadblock. It’ll be a bridge.

Whether you’re a café owner in Melbourne or a vet clinic in Perth, staying visible online is still about showing up where it matters. The method may be shifting, but the mission? That’s the same as it’s always been.

Guest Post

    Subscribe to our newsletter

    Get quality content on digital marketing delivered to your inbox

    subscribe