TLDR: A new report from DAC Group highlights how AI is fundamentally reshaping local search, moving beyond traditional keyword-driven results to AI-powered summaries and automated interactions. Businesses must adapt their strategies to maintain visibility across diverse platforms like Google AI Overviews, TikTok, Reddit, and Perplexity AI, focusing on structured data, multi-platform content, and preparing for AI-driven customer interactions.
The digital marketing landscape is undergoing a profound transformation as Artificial Intelligence (AI) redefines local search. A recent study by DAC Group reveals that businesses must urgently adapt their strategies to remain visible and competitive in 2025 and beyond. The era of simple keyword optimization is fading, replaced by AI-powered summaries and increasingly automated customer interactions.
Google’s introduction of “AI Overviews” has dramatically altered search engine results pages (SERPs), with AI-generated summaries frequently appearing above traditional organic links. A comprehensive DAC study, analyzing over 700 search results across four major industries, found that only 1% of queries simultaneously triggered both AI Overviews and Google Maps Pack results.
The research clearly delineates between query types: informational searches, often using terms like “how” and “why,” activated AI Overviews in 28% of cases. In contrast, location-based “near me” searches consistently yielded Maps Pack results. This distinction necessitates a dual optimization approach for businesses aiming to enhance their online traffic and visibility.
The Shifting Tides of Consumer Search Behavior
Beyond Google, a significant generational shift in search behavior is evident. Younger consumers are increasingly bypassing traditional search engines for discovery. Perplexity AI has rapidly amassed 22 million monthly active users. Furthermore, 64% of Gen Z and 49% of Millennials are now utilizing TikTok for their search needs, while Reddit has emerged as a trusted source for recommendations, particularly among 70% of its Millennial and Gen Z user base.
“The generational differences in search behavior are clear,” states the DAC report. “Gen Z often turns to TikTok and Reddit for inspiration and discovery rather than Google, while older generations still prefer traditional search methods but are becoming more accepting of AI-generated summaries.”
Key Adaptation Strategies for an AI-Driven Future
Content Diversification: Develop robust content strategies that are effective across a multitude of platforms, not just traditional websites.
Dual Optimization: Optimize for both AI Overviews and Maps Pack visibility, understanding the nuances of each.
Structured Data: Ensure all business information is meticulously structured and machine-readable, enabling AI to easily interpret and utilize it.
Alternative Platform Presence: Maintain a strong and active presence on alternative search and discovery platforms such as TikTok, Reddit, and Perplexity AI.
Automated Interactions: Prepare for significant operational changes as AI begins to automate customer interactions. Google’s experimental “Call with AI” feature, for instance, allows AI assistants to directly contact businesses, potentially increasing call volume and altering the nature of customer service.
Also Read:
- New Study Reveals Travel Shopper Behavior in Google’s AI Mode, Reshaping Marketing Strategies
- Generative AI Adoption Soars Among Marketers in 2025, Yet Challenges Persist
According to Google’s Search Central, the foundational principles of local search success—relevance, trust, and local authority—remain critical. However, businesses must now integrate these enduring principles with new technical requirements and platform-specific optimization tactics. The shift towards AI-driven search presents both formidable challenges and unprecedented opportunities for businesses prepared to evolve their local search strategies for this new era of digital discovery.
