Business

How ChatGPT, Perplexity, and Google AI Overviews Are Changing How Customers Find Local Businesses

By: DND
August 1, 2026

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AI search for local businesses - Digital Nomad Designs

When customers are looking for help, they still Google it, but also lean on AI search for local businesses to get the answers they’re looking for. ChatGPT Search pulls from general location information to fine-tune the local results, Perplexity builds answers from current web search results, and Google’s generative AI features can surface local business information.

So what does that mean for business owners?

It’s not always about ranking for a keyword or even being in the first spot in Google. Instead, the goal is to focus on how search and AI work together to improve local results. That means your business needs to be easy for search and AI systems to understand, verify, recommend, and cite. After years of helping businesses get more visibility online while keeping their websites up and running, here’s what our team at Digital Nomad Designs is seeing with the new trends in online search.

Image of AI search screen conveying the need for AI search for local businesses - DND

Local Search Is Becoming More Conversational

It wasn’t that long ago that people were doing quick, traditional Google searches. Now they’re having conversations with AI. Here’s an example of AI search for local businesses:

  • Traditional search: “HVAC company Austin”
  • AI-style search: “Who repairs mini splits in Austin and offers weekend appointments?”

Customers now turn to tools like ChatGPT to describe their problem, their biggest priority for hiring someone, location, timing, and other specifics all at the same time. Once they get those answers, they continue with follow-up questions without starting their search over.

What hasn’t changed is businesses that offer more value and offer clear, specific information on their websites are winning. That was true in traditional search, but even more so now. If your website is vague and says, “quality service you can trust,” without much else, the stack of search systems doesn’t have much useful information about who you are, how the company helps, what it does, its specialties, or why it’s important.

The good news is that SEO and AEO aren’t replacing each other, but overlapping. Google says its own generative search features are still rooted in its core Search ranking and quality systems. That means AEO is amplifying what SEO is doing and vice versa.

What Does AI Need to Know About Your Local Business?

The rise of AI search for local businesses means your website should clearly answer:

  • What does your company do?
  • Where do you provide or ship your product or service?
  • What kind of customers do you work with?
  • What services and products do you specifically offer?
  • What makes your company different?
  • What kind of proof backs up your claims?
  • What should someone do next who wants to work with you?

You probably assume you already have all of those questions answered on your website, but is it clear and intuitive to figure out? Or is it implied or buried in different areas of your site? Accuracy still matters, whether you’re working through SEO or AEO best practices. You need accurate:

  1. Service areas
  2. Business hours
  3. Contact details
  4. Individual service pages
  5. Location information
  6. FAQs
  7. Reviews and testimonials
  8. Credentials
  9. Real examples of completed work

As always, your content should add information your competitors aren’t rehashing over and over. Google’s latest recommendation is for unique, expert-led, non-commodity content for generative search visibility. Google also strongly encourages businesses to complete their Google Business Profile information for local visibility. They also say that Business Profiles can give businesses more visibility within generative AI responses.

It can be helpful to add a LocalBusiness schema to your website to give search engines more structured information about your business. It ultimately reinforces details like your location, hours, services, and contact information so they’re easier for search systems to understand, which can help improve search results.

Audit Your AI Answer Footprint

Business owners need to stop testing visibility just by Googling their company name and seeing where it ranks. Instead, it’s a good idea to create 5 to 10 realistic questions an actual customer might ask before hiring them.

  • Who installs PPF for Teslas near me?
  • Best local CPA for a new LLC?
  • Who can repair an AC on the weekend?

You can run those variations through Google, ChatGPT, and Perplexity and pay attention to which businesses appear, if yours is mentioned, and what sources are being cited.

Once you land on some competitors, you also want to see what information they have that yours doesn’t. This AI answer footprint audit isn’t about obsessing over an answer, but looking for those recurring gaps that can shape your website, SEO strategy, Business Profile, and future content.

You’ll also see the results of what’s working with your AI efforts. In June 2026, Google launched a dedicated Generative AI performance report in Search Console so businesses can monitor impressions within AI Overviews, AI Mode, and other features. ChatGPT also uses referral links, such as “utm_source=chatgpt.com,” to make it easier to see traffic coming from ChatGPT Search in analytics tools.

Fix Your Citation-to-Conversion Gap

It’s a win to get cited by AI tools, but it’s not the finish line. You also need to consider what happens when someone clicks on a cited service page. That potential customer now has to decide whether the recommendation is trustworthy or not. That landing page now has to quickly confirm:

  • They’re in the right place
  • Your business serves the area
  • You can solve their problem and have proof
  • They can quickly contact, book, call, or buy

The quality of your UX, or user experience, also matters. If you improve AI visibility, get cited, and a customer lands in the right place, it can all be wasted with confusing navigation, generic copy, buried contact information, weak mobile UX, or no clear CTA. Our team at Digital Nomad Designs combines SEO/AEO, custom web design, StoryBrand messaging, analytics, and conversion optimization.

Online map to convey the power of AI search for local businesses - DND

Ready to Improve Your Local Visibility Across Search and AI?

It may seem like you got your head around SEO, but even overwhelmed business owners can improve their AI search for local businesses. You don’t need to chase down info on every new acronym or completely rebuild your marketing every time search and AI change.

Our team at Digital Nomad Designs helps your business website and Google Business Profile communicate clearly and get found and understood by search platforms. Our goal is to turn visibility into action to help your business grow steadily and naturally.

Book a call to see where your business is showing up now and where there may be opportunities to improve. to see where your business is showing up now and where there may be opportunities to improve.

SEO & AEO FAQs

How does ChatGPT find local businesses?

ChatGPT Search looks through current web sources and uses general location information to make results clear and relevant. Your business should make sure that your services, location, and other information is as localized and relevant as possible so your ideal customer can find you.

Can my business show up in Google AI Overviews?

Yes. Google says its AI search features can include information about local businesses, but that doesn’t mean traditional SEO doesn’t matter anymore. Your business still needs a strong SEO foundation and an up-to-date Google Business Profile that gives Google clear information about your business.

Is AEO replacing traditional SEO?

No, Google is very explicit that generative AI search experiences still rely on existing Search infrastructure. That means the basics of SEO still matter. AEO builds on that foundation by helping your content get picked up, understood, and presented as a direct answer.

Do ChatGPT and Perplexity crawl business websites?

Both ChatGPT and Perplexity have search-specific crawlers. OpenAI uses OAI-SearchBot for ChatGPT Search, and Perplexity uses PerplexityBot for its search index. You should make sure your website’s content isn’t unintentionally blocked from the platforms you want visibility on.

How can I tell if AI search is sending people to my website?

Don’t rely on keyword rankings alone to figure out whether AI search is helping your business. Check your referral traffic and conversions in analytics and watch for visits from ChatGPT Search. Google Search Console also offers reporting for visibility in generative AI search features.

Does my website still matter if AI gives customers the answer?

Yes, your website absolutely still matters. AI can help someone discover or compare a business, but your website still has to validate the choice and help convert the visitor. That’s why you need clear messaging, strong UX, proof, mobile usability, and straightforward CTAs to match the needs of someone who lands on your website.