Effects of Google AI Overviews on Search Visibility for Local Services Businesses

Google’s AI Overviews, a relatively new feature in search results, are AI-generated summaries that appear prominently on search engine results pages (SERPs) 1. These overviews often appear before organic listings and sometimes even above ads 2. AI Overviews aim to provide users with concise and relevant information directly on the SERP, potentially reducing the need to click through to individual websites 3. While AI Overviews offer several potential benefits, such as enhanced user experience and increased efficiency 2, they also raise concerns about their impact on search visibility for businesses, particularly those offering local services. This report delves into the effects of Google AI Overviews on local services businesses, examining the challenges and opportunities presented by this evolving search landscape.

Impact of AI Overviews on Search Results

Studies have shown that AI Overviews appear in a significant percentage of search results, with estimates ranging from 4.5% to 47% 4. One study analyzing over 120,000 keywords found that AI Overviews appeared in 47% of searches and took up almost half of the screen space on desktop and mobile devices 6. These overviews are more likely to appear for informational queries, with one study finding that they show up for 59% of informational queries compared to 19% of commercial queries 5. This suggests that businesses that rely heavily on informational keywords may be more affected by AI Overviews.

One of the main concerns is the potential for AI Overviews to reduce organic website traffic. Since these overviews provide summaries of information directly on the SERP, users may be less inclined to click through to individual websites, leading to a decline in organic clicks 2. This could be particularly detrimental to local services businesses that rely on organic search traffic to attract customers. AI Overviews can occupy a significant portion of mobile screen space, potentially pushing organic listings out of view and reducing the click-through rate 6.

AI Overviews are designed to provide even more information for “Near Me” searches, which can be particularly beneficial for local services businesses 7. While there is already a local map pack in search results, AI Overviews aims to give users more comprehensive information, including reviews and summaries of a business’s capabilities. This suggests that local services businesses that optimize their online presence for “Near Me” searches may be able to leverage AI Overviews to their advantage.

It’s important to understand that AI Overviews function differently than traditional search results. They operate more like an “answer engine” than a “search engine.” 8. Instead of simply providing a list of links, AI Overviews aims to answer the user’s question directly, often including common follow-up questions. This shift in functionality has implications for how businesses approach SEO and content creation.

Another important aspect of AI Overviews is their dynamic nature. Research indicates that the appearance of AI Overviews in search results has significantly decreased since January 2024 9. This decline could be attributed to several factors, including Google’s efforts to refine the accuracy and helpfulness of AI Overviews, as well as potential adjustments to the algorithm based on user feedback and search behavior. This highlights the evolving nature of AI Overviews and the need for businesses to stay informed about the latest developments.

Biases and Limitations of AI Overviews

While AI Overviews offer several potential benefits, it’s crucial to know their potential biases and limitations. These overviews are generated by AI models that learn from vast amounts of data, which may contain biases or inaccuracies. Some concerns include:

  • Inaccuracy: AI Overviews may sometimes provide inaccurate or misleading information, particularly for complex or nuanced topics 10. One study found that 43% of finance-related searches answered by Google’s AI Overviews tool were inaccurate 10.
  • Bias: AI models can perpetuate biases present in the data they are trained on, potentially leading to unfair or discriminatory results 12. For example, concerns have been raised about the potential for AI Overviews to reinforce existing biases in areas like healthcare or finance.
  • Lack of Transparency: There is limited transparency in how AI Overviews are generated, making it difficult to understand why certain information is included or excluded 11. This lack of transparency can make it challenging for businesses to optimize their content for AI Overviews effectively.
  • Oversimplification: AI Overviews may oversimplify complex topics, potentially omitting important details or nuances 13. This can be particularly problematic for topics that require in-depth understanding or where nuanced information is crucial.
  • Making Simple Information More Confusing: In some cases, AI Overviews can make finding simple information more confusing, as users may need to verify the information provided, which defeats the purpose of having an AI summary 14.

It’s important to note that Google has acknowledged the potential for AI Overviews to generate “odd, inaccurate, or unhelpful” results 15. The company has stated that it is actively working to improve the accuracy and helpfulness of AI Overviews by refining its algorithms, adding triggering restrictions for certain queries, and limiting the inclusion of satire and humor content 16. Despite these efforts, it’s crucial for users to critically evaluate the information presented in AI Overviews and consult multiple sources when necessary.

How AI Overviews Are Generated

Understanding how Google AI Overviews are generated is crucial for businesses seeking to optimize their online presence. These overviews are powered by Google’s Gemini large language model, integrated with other Google systems, such as the Knowledge Graph and search ranking systems 1. The AI model analyzes various factors to determine which information to include in an overview and which sources to cite. These factors include:

FactorDescriptionExample
Content QualityA well-written article that provides a clear and concise answer to a user’s question will likely be featured in an AI Overview.An AI Overview will likely feature a well-written article that provides a clear and concise answer to a user’s question.
E-E-A-T SignalsE-E-A-T stands for Experience, Expertise, Authoritativeness, and Trustworthiness. Google’s AI considers these factors when evaluating content quality19.A website with author bios, credentials, and trusted backlinks is more likely to be considered authoritative and trustworthy.
Search IntentGoogle’s AI aims to understand the user’s intent behind a search query19.Content that provides in-depth analysis, clear answers, and trustworthy information is favored by Google AI19.
Structured DataSchema markup helps search engines understand the content on page18.Using schema markup for FAQs, how-tos, and definitions can help Google’s AI identify and extract relevant information.
Brand Mentions and AuthorityThe frequency and quality of brand mentions across reputable websites can influence whether a business is included in AI Overviews20.A business frequently mentioned in news articles, industry blogs, and online reviews is more likely to be authoritative and relevant.

It’s important to note that Google’s systems automatically determine which links appear in AI Overviews 21. Businesses cannot directly control whether their content is featured in an overview. However, by optimizing their content for the above factors, businesses can increase their chances of being included.

Preventing Content from Appearing in AI Overviews

While being featured in an AI Overview can benefit many businesses, some may prefer to prevent their content from being summarized. Google provides options for managing how content appears in search results, including AI Overviews.

One way to prevent content from appearing in AI Overviews is to use Search’s preview controls 21. These controls allow website owners to specify how much of their content can be shown in search results previews, including AI Overviews. By limiting the amount of content that can be previewed, businesses can reduce the likelihood of their content being summarized in an AI Overview.

It’s important to note that implementing preview controls does not guarantee that content will not appear in AI Overviews. Google’s systems ultimately determine which content is featured, and there may be instances where content is still summarized despite preview controls.

Optimizing for AI Overviews

To mitigate the potential negative effects of AI Overviews and capitalize on the opportunities they present, local services businesses can take several steps to optimize their online presence:

  • Focus on Content Quality: Create comprehensive, well-structured content that provides valuable information to users. Use clear headings, subheadings, bullet points, and other formatting elements to enhance readability. Google AI favors content that provides in-depth analysis, clear answers, and trustworthy information 19.
  • Optimize for Search Intent: Understand the different types of search intent and tailor content to meet those needs. Provide direct answers to user queries and ensure content aligns with the user’s search goals. AI Overviews align with “Micro SEO” principles by targeting specific, long-tail queries 22. This means that businesses should focus on creating content that addresses specific user needs and provides detailed answers to niche questions.
  • Leverage Schema Markup: Implement schema markup to provide context to your content and make it easier for Google’s AI to understand. Use schema types like FAQ, HowTo, and LocalBusiness to enhance visibility.
  • Build Brand Authority: Increase brand mentions across reputable websites and online platforms. Engage in content marketing, public relations, and social media to build brand awareness and authority.
  • Optimize Google Business Profile: Ensure your Google Business Profile is complete and accurate, with up-to-date information, high-quality images, and relevant categories. Encourage customer reviews and respond to feedback promptly.

Alternative Online Marketing Strategies

While optimizing for Google Search remains crucial, local services businesses should explore alternative ways to reach customers online. These strategies can help diversify traffic sources and reduce reliance on organic search:

  • Social Media Marketing: Engage with local audiences on social media platforms like Facebook, Instagram, and Nextdoor. Share updates and promotions and participate in community discussions.
  • Email Marketing: Build an email list and use email marketing to communicate with customers, share updates, and promote special offers.
  • Local Partnerships: Collaborate with other local businesses to cross-promote services and reach new customers.
  • Content Marketing: Create valuable content that addresses local interests and concerns. Share blog posts, articles, videos, and infographics on local platforms and social media.
  • Online Advertising: Utilize online advertising platforms like Google Ads and Facebook Ads to target local customers with specific interests.
  • Local SEO: Local SEO is essential for local businesses to attract customers in their area 23. This includes optimizing website content for local keywords, claiming and verifying business listings on online directories, and building local citations.

Case Studies and Anecdotal Evidence

While research on the specific impact of AI Overviews on local services businesses is limited, there is anecdotal evidence and expert opinions suggesting both potential benefits and challenges.

Some experts believe that AI Overviews could benefit local businesses by providing more detailed and contextually relevant information to users 24. This could lead to higher quality leads and increased conversions. For example, AI Overviews can summarize a business’s capabilities and reviews, making it easier for users to compare options and make informed decisions.

However, there are also concerns that AI Overviews could reduce organic traffic to local business websites, particularly for informational queries 25. This could make it more challenging for local businesses to attract customers through organic search. Some businesses have reported a decrease in organic traffic since the introduction of AI Overviews, particularly for informational keywords.

One case study by Zapier analyzed the impact of AI Overviews across 20 industries 25. The study found that AI Overviews appeared more frequently for certain industries, such as food and beverage and relationships, while appearing less frequently for others, like automotive and education. This variation could be due to several factors, including the type of information searched for and the availability of high-quality content in different industries.

Conclusion

Google AI Overviews present both challenges and opportunities for local services businesses. While they have the potential to enhance user experience and provide more relevant information, they also raise concerns about reduced organic traffic and visibility. By understanding how AI Overviews work and taking steps to optimize their online presence, local services businesses can adapt to this evolving search landscape and continue to attract customers online.

It’s important to remember that Google is under pressure to innovate rapidly in the AI space, even if it means encountering challenges along the way 26. This pressure could lead to further changes and refinements to AI Overviews in the future. Local services businesses need to stay informed about these developments and adapt their strategies accordingly.

To thrive in this evolving search landscape, local services businesses should:

  • Prioritize content quality and E-E-A-T signals.
  • Optimize content for various search intents, including “Near Me” searches.
  • Leverage schema markup to enhance content visibility.
  • Build brand authority and online visibility.
  • Optimize Google Business Profile for maximum impact.
  • Diversify marketing efforts and explore alternative online strategies.
  • Monitor the performance of their online presence and adapt to changes in the search landscape.

By taking a proactive and adaptable approach, local services businesses can navigate the challenges and capitalize on the opportunities presented by Google AI Overviews, ensuring continued success in the digital age.

References

1. AI Overviews: What They Are and How to Optimize for Them – Backlinko: https://backlinko.com/ai-overviews

2. Google AI Overviews: What Do They Mean for Search? – Digital Marketing Institute: https://digitalmarketinginstitute.com/blog/google-ai-overviews-what-do-they-mean-for-search

3. Google AI Overviews: Reshaping Search and SEO Strategies – CMSWire.com: https://www.cmswire.com/digital-marketing/ai-overviews-sge-and-seo-differences-challenges-and-the-path-forward/

4. Impact of Google’s AI Overviews: SEO Research Study – seoClarity: https://www.seoclarity.net/research/ai-overviews-impact

5. Google AI Overviews and Its Impact on SEO – Brandastic: https://brandastic.com/blog/google-ai-overviews-and-its-impact-on-seo/

6. Study: Google AI Overviews Appear In 47% Of Search Results: https://www.searchenginejournal.com/study-google-ai-overviews-appear-in-47-of-search-results/535096/

7. Understanding Google’s AI Overview: Impact on Organic Search and Business Strategies: https://www.bounteous.com/insights/2024/05/30/understanding-googles-ai-overview-impact-organic-search-and-business-strategies/

8. What Do Google’s AI Overviews Mean for Local Search (And Local SEO)? – WebFX: https://www.webfx.com/blog/seo/google-sge-for-local-search/

9. Google AI Overviews: New Research Study by SE Ranking: https://seranking.com/blog/google-ai-overviews-research/

10. The Risks of Google’s AI Overviews in Finance | Indulge: https://indulge.digital/blog/risks-google%E2%80%99s-ai-overviews-finance

11. How Google AI Search Results Are Changing Content & Clicks: https://wideangle.co/blog/google-ai-search-results

12. Google AI Overview places misleading answers on top of searches …: https://frontline.thehindu.com/news/google-ai-overview-search-engine-producing-wrong-answers-experts-worried-technology/article68214734.ece

13. An Analysis of AI Overview Visibility in Google Search for Trending News – NewzDash: https://www.newzdash.com/guide/analysis-ai-overview-visibility-google-search-trending-news

14. A detailed overview of Google’s ridiculously bad AI Overview feature …, accessed January 30, 2025: https://www.reddit.com/r/google/comments/1czu0qh/a_detailed_overview_of_googles_ridiculously_bad/

15. Google admits its AI Overviews can generate “some odd, inaccurate” results – CBS News: https://www.cbsnews.com/news/google-ai-overview/

16. AI Overviews: About last week – The Keyword: https://blog.google/products/search/ai-overviews-update-may-2024/

17. What Is Google’s AI Overviews? – TechRepublic: https://www.techrepublic.com/article/google-ai-overviews/

18. How to get Google AI Overviews to notice you—finally – ContentGrip: https://www.contentgrip.com/how-to-get-google-ai-overviews-to-notice-you/

19. Google AI SEO Guide: Navigating Google AI Overview Impact – NoGood: https://nogood.io/2024/08/05/google-ai-overview/

20. Leverage Google AI Overviews with Digital Marketing Expertise – Roger West: https://www.rogerwest.com/strategy/leverage-google-ai-overviews/

21. AI Overviews and Your Website | Google Search Central | Documentation: https://developers.google.com/search/docs/appearance/ai-overviews

22. How to Optimize Your Website for Google’s AI Overviews: https://boulderseomarketing.com/optimizing-for-googles-ai-overviews/

23. 10 local marketing ideas for connecting with customers in your city – GoDaddy Blog: https://www.godaddy.com/resources/mindset/10-local-marketing-ideas-for-connecting-with-customers-in-your-city

24. Google AI product overviews launched – here’s how to get featured – Inside Retail Australia: https://insideretail.com.au/top-stories/google-ai-product-overviews-launched-heres-how-to-get-featured-202411

25. How Google AI Overview impacts 20 industries – Zapier: https://zapier.com/blog/google-ai-overview-industry-impacts/

26. What are Google’s AI Overviews, and why is it getting things wrong? – Business Standard: https://www.business-standard.com/technology/tech-news/what-is-google-s-ai-overviews-and-why-is-it-getting-things-wrong-124052700272_1.html

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Steve Sager