AI Is Changing How Customers Find Local Businesses. Here’s What We’re Seeing.

Published: February 25, 2026
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More people are skipping the traditional Google search and asking AI for recommendations instead. “Who are the best plumbers in Atlanta?” “Best coffee shops in Austin?”

These aren’t hypothetical queries — they’re happening right now, across Google AI Mode, ChatGPT, and Perplexity.

The question for any local business: when someone asks AI for a recommendation in your space, do you show up?

I wanted to find out how these platforms actually work. Not in theory, but in practice.

So, I ran an experiment.

What I Tested

I asked 30 “best [service] in [city]” queries across three AI platforms: Google AI Mode, ChatGPT, and Perplexity.

These covered a wide range of local services: HVAC companies, restaurants, dentists, auto repair shops, salons, and more across 30 U.S. cities.

Then I did something most people don’t do: instead of just looking at which businesses got recommended, I looked at where the AI pulled its information from.

Every platform shows its sources in a citation panel.

I cataloged all 725 of them.

Yes, it sucked.

List of AI Queries Snapshot

Why Citations Matter More Than Mentions

There’s an important distinction here.

AI platforms do two things: they recommend businesses in their answers, and they cite sources in a sidebar or footer. The sources are what matter most, because that’s what the AI is actually reading and trusting to form its recommendations.

If you’re not showing up in the types of sources these platforms rely on, you’re invisible to them — even if your business is great.

What I Found

What AI Platforms Cite for Local Business Queries Chart

Each platform told a completely different story.

Google AI Mode

Google AI mode citations snapshot

Google AI Mode leaned heavily on Yelp listings (32%) and Reddit threads (30%). Community discussions and review platforms drove the majority of its citations.

Third-party editorial content like “best of” articles made up another 18%.

Business websites?

Only 16% of citations.

What this tells us: Google’s AI is weighing what other people say about your business more than what you say about yourself.

ChatGPT

ChatGPT AI citation snapshot

ChatGPT had the most balanced mix of sources, but showed a clear preference for editorial content.

About 22% of its citations came from third-party “best of” roundups — local magazine features, “Top 10” blog posts, that kind of thing.

Business websites accounted for 35%, with review platforms and social discussions splitting the rest.

What this tells us: getting featured in local publications and roundup articles carries real weight with ChatGPT.

Perplexity

Perplexity AI citation snapshot

Perplexity was the outlier.

It cited business websites directly 73% of the time. When Perplexity answers a local query, it’s mostly going straight to the source.

What this tells us: the quality and depth of your own website matters a lot — at least on this platform.

What This Means for Your Business

The biggest takeaway isn’t about any single platform.

It’s that your online presence is an ecosystem, and different AI platforms are pulling from different parts of it.

AI citation snapshot

Your Website Still Matters

Your website is still the foundation. It’s the one thing you fully control, and at least one major AI platform is relying on it heavily. Clear service descriptions, coverage areas, and helpful content give AI systems something to work with.

Your Reputation Travels

What customers say about you on review sites, in Reddit threads, and on social media is feeding directly into AI recommendations — especially on Google. This isn’t new advice, but it reinforces something I’ve always known: reputation matters. Now it matters in a new way.

Getting Noticed by Third Parties Helps

When a local publication, industry blog, or “best of” list features your business, that mention does more than drive a few clicks. It becomes a source that AI platforms trust and cite. This kind of earned visibility has always been valuable. AI just makes it more so.

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This Is Still Early

I want to be upfront: this is a snapshot.

AI platforms are evolving fast, and what they cite today may shift tomorrow.

I ran this experiment in early 2026, and I plan to revisit it.

But the direction is clear.

AI is becoming a real channel for local discovery, and the businesses that show up across multiple source types — their own site, review platforms, editorial features, community discussions — are the ones best positioned to get recommended.

I’m keeping a close eye on this so my clients don’t have to.

Stay tuned.