AI Is Changing How Customers Find Local Businesses

Search Engine Journal recently reported on a growing trend: artificial intelligence tools like ChatGPT and Google AI Overviews are now summarizing information about local businesses directly in search results. Instead of browsing a list of options, many customers get a single answer—and that answer may come from a 3.3-star business if the AI thinks it matches the query.

This shift is significant because it changes how Australian small and mid-sized businesses need to think about their online presence. The old game of chasing the top spot in a list of local listings is fading. Now, the AI decides which business to highlight based on reviews, listings, and mentions it can crawl—not just your star rating or your website’s SEO.

Why Your Online Reputation Matters More Than Ever

AI tools build their answers by pulling together review text, directory information, and public mentions. But here’s the catch: major platforms like Google and Yelp block AI from reading reviews directly on their sites. If your best reviews live only on Google, the AI cannot see them. The moment you republish those same reviews on your own website or social media, they become fair game for the AI to use.

This means your star rating alone is no longer a reliable signal. The AI cares more about recency and how many fresh, detailed reviews you have. A business with 1,000 reviews from three years ago will lose out to a competitor with 200 recent reviews, even if the older reviews are more positive. The AI also changes its answer depending on the time of day, the user’s device, and even the user’s inferred preferences—like owning an SUV.

What This Means for Australian SMBs

For Australian small and mid-sized businesses, this is both a challenge and an opportunity. Many local businesses rely on word-of-mouth and a steady flow of Google reviews. But if those reviews are not being read by AI, they are effectively invisible to the customers who ask AI for recommendations. That includes the growing number of Australians using voice search, Google Maps, and ChatGPT to find a plumber, café, or car wash nearby.

The practical takeaway: you need to control what the AI says about your business. That means actively publishing your best reviews on your own website, on social media, and in any public-facing widget. It also means responding to every review—especially recent ones—within 72 hours. The AI looks for fresh, ongoing activity, not just a static high rating.

What You Can Do Now

  • Audit what AI currently says about your business. Use a free tool or ask ChatGPT yourself: “What do people say about [your business name] in [your suburb]?” Look for inaccuracies or missing information.
  • Republish your best reviews on your website using a review widget that is crawlable by AI. Do not rely only on Google or Yelp to store them.
  • Set up a system to ask for reviews within 72 hours of a customer transaction. Speed and recency are now more important than your average star rating.
  • Respond to every review—positive or negative—within 72 hours. This signals to AI that your business is active and cares about customer feedback.
  • Check your Google Business Profile and other directory listings for consistency. AI pulls from multiple sources, so your address, phone, and hours must match everywhere.

MS&VG’s AI-powered SEO service can help Australian SMBs run a full audit of what AI says about your locations and build a strategy to improve your visibility. Reach out to learn how to make sure your business is the answer, not just a listing.