Generative AI is changing how users search. With instant answers from AI Overviews, ChatGPT, and other tools, many searchers no longer need to click through to websites – especially for informational queries.

But this change has resulted in many websites seeing declining click-through rates despite rising impressions.

Gsc Impressions Up Clicks Down

However, there’s a notable exception: local search.

Businesses that depend on local intent are seeing steady performance, with no signs of the “alligator graph” (rising impressions and falling clicks) that plagues other categories.

Gsc Local Ctr Unimpacted

This article explains why local content is uniquely resilient in the age of generative AI – and how you can capitalize on this by strengthening your local SEO efforts.

1. Large language models don’t deliver a good local search experience

Try searching [pizza near me] in ChatGPT or another AI platform.

The results are vague, lack images, and often list places that aren’t even nearby.

Pizza Quick Picks At A GlancePizza Quick Picks At A Glance

There are no maps, no phone numbers, and no real-time context.

By contrast, search the same query in Google Maps.

Google Maps PizzaGoogle Maps Pizza

You get a rich, visual interface with accurate listings, reviews, directions, call buttons, and real-time location tracking.

AI tools don’t offer a comparable user experience for local discovery. Why?

2. AI platforms lack reliable location awareness

Generative AI doesn’t know where you’re searching from – at least not without you telling it explicitly. That lack of geolocation leads to generic, irrelevant answers.

Chatgpt Doesnt Know Your LocationChatgpt Doesnt Know Your Location

For local search, proximity is a key ranking factor, so this is a critical weakness.

While privacy advocates may welcome the anonymity, users looking for nearby services don’t benefit from extra friction.

Most searchers won’t bother entering their exact address just to get AI-powered suggestions. As a result, traditional search still wins for queries with clear local intent.

Even if AI tools eventually solve for location accuracy, they still face another barrier.

3. Local search involves real-world intent

Local searches often lead to phone calls, in-person visits, or service appointments—not just website clicks. Users want to talk to someone who can fix their roof, unclog a pipe, or deliver a pizza. AI can explain how to do these things, but it can’t actually do them.

This is why Google rarely includes AI Overviews in local search results. In fact, AI Overviews are less likely to appear for local queries than for informational ones, a recent Ahrefs study found.

Aio Normal Searchdistribution Local Non LocalAio Normal Searchdistribution Local Non Local

Even when AI attempts to answer, it leans heavily on the same sources traditional local SEO relies on.

4. AI results still depend on local SEO data sources

Ask Perplexity or ChatGPT for a local service provider and you’ll often get:

  • A Yelp “best of” list
  • Google Business Profile data, including review counts and ratings
  • A Google Maps link for directions
Pipe Repair Near MePipe Repair Near Me

These models don’t generate original local…


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Last Update: September 17, 2025