The explosion of generative AI tools like ChatGPT and similar platforms has added a new layer of business discovery to local search and visibility. Needless to say, this has left many business owners and marketers wondering if local businesses can rank in AI tools in the same way they can rank in traditional local search results.

The short answer is: sort of — but not in the way we traditionally understand “ranking.” This is because AI tools don’t always present search results in a ranked list, as Google does for the local pack or the organic results below it, and they don’t follow the same sets of rules as traditional search engines.

Instead, AI generates synthesized answers that may mention one or more businesses as part of a natural-language response, which may or may not include a numbered list. This subtle but important difference is reshaping how businesses need to think about measuring local visibility in the AI era.

AI Visibility Vs Traditional Local Rankings

In the traditional local search model, success is measured by a business’s position in the local pack (still the most important place to rank) and organic search results. Using tools like geo-grid rank tracking, businesses can see where they appear for a specific query in a specific geographic location, then optimize and track performance trends to improve rankings over time.

But generative AI tools don’t really use rankings. Sure, they sometimes mention local business in a numbered list that looks like a local pack, but it isn’t based on a defined set of ranking factors the same way that Google’s local pack is, and it’s not as predictable.

What matters in this context is not necessarily what order a business appears in, but whether it appears at all — and how often it’s mentioned across different queries and geographies. This is what we call AI visibility.

AI visibility can be thought of as the frequency and consistency with which a business is referenced in AI-generated responses to relevant local queries. What matters the most here is that the business is part of the conversation. In short, local rankings measure position, while AI visibility measures presence.

Why AI Visibility Matters

As more consumers turn to AI tools for locally relevant answers, being mentioned in those answers offers a new way to drive business. It’s not as structured as a search engine results page (SERP), but it has a real-world impact.

Imagine two cafes which rank well in traditional local search results — but one is frequently mentioned when people ask ChatGPT something like, “Where are some cozy cafes with WiFi around Mile End, Montreal that I can work on my laptop in?,” while the other is not. Over time, the mentioned business is likely to get more attention, consideration, and foot traffic because of its greater AI visibility, even if both continue to rank highly in regular SERPs.

Seeing a Drop-off in Local Search Traffic? This Might Be Why

Businesses that show up in AI responses across a wide area may also be gaining a greater ambient awareness among prospective customers. These potential customers might not necessarily visit a business they see mentioned in AI right away, but they’re more likely to recall it when they’re ready to buy.

In other words, success in AI-powered local search isn’t defined by increasing rankings, but rather by earning mentions and building brand recognition.

What Influences AI Mentions?

The inner workings of AI models are complex and often murky, but several factors appear to influence whether a business is mentioned in responses:

• Strong online presence: Optimized business listings and websites, high-quality citations, and active content publishing still matter.
• Quality reviews: Positive, descriptive customer reviews across platforms help AI understand what a business is known for.
• Local coverage: Mentions in local news, directories, blogs, and event listings contribute to a broader footprint.
• Structured data: Schema markup and other forms of structured data can help AI tools parse and validate business information.
• Semantic relevance: Businesses frequently associated with specific keywords and entities related to business categories, attributes, and places, are more likely to be surfaced.

Fortunately, many of these factors also apply to optimizing for traditional local search, so a good general local SEO strategy can translate to better AI visibility as well.

How Should Local Businesses Respond?

The best approach to increasing AI visibility is to focus on the fundamentals of local visibility and broaden your footprint wherever possible:

• Build out your online profiles with complete, accurate, and up-to-date information.
• Encourage detailed reviews that highlight your strengths and services.
• Create locally relevant content that positions your business as an authority in your niche.
• Earn mentions in third-party content, whether through partnerships, local media, or sponsorships.

Just like with regular search rankings, you should monitor your local AI visibility. Pay close attention to the types of sources that are cited when your business — or its competition — comes up. Then, focus on optimizing your presence on those sources to increase your chances of being mentioned more frequently and more favorably in AI-generated responses.

Final Thoughts

Even with AI browsers on the horizon, AI tools aren’t replacing traditional search — at least not yet. However, they are playing a meaningful role in how people discover local businesses.

As the AI-driven search experience develops, so too will the metrics we use to evaluate success. For now, the most important shift is mental: stop thinking only about ranking in the traditional sense and start thinking about your broader presence, including AI visibility!