How Small Businesses Should Think About Local SEO in the Age of AI

As the owner of Central Coast SEO, the conversation I’m having more and more with small business owners is about how local visibility is changing dramatically in 2026. It is no longer enough to simply rely on traditional local search tactics. Google’s AI Overviews are redefining how search results appear, especially for “near me” queries, and at the same time long-standing algorithm factors such as Panda, Possum and Hawk still play a crucial role in your business’s discoverability. Add to that the importance of EEAT and citation building, and it becomes clear that local SEO has evolved into a multi-layered discipline that small business owners must understand and leverage if they want to stay ahead of the competition.

Where once “near me” searches simply returned a list of map pins and organic listings, today sophisticated AI features synthesise local results into a single overview at the top of the search page. This means that your business needs to be visible not just in traditional rankings but also in the data sources that feed those AI Overviews, including Google Business Profile, structured content on your website, reviews, schema and trusted external mentions. AI Overviews aim to give searchers a concise summary before they even scroll, so if your business isn’t understood or trusted by Google’s systems, your opportunities to be seen can diminish.

Why Traditional Algorithms Still Matter

It can be easy to be dazzled by the new AI features and forget that Google’s core ranking algorithms have been shaping local search for years. Panda, for example, was introduced to improve the quality of search results by penalising low-quality and thin content. For a small business, this means that content on your website and Google Business Profile still needs to be substantive, helpful and relevant rather than just a string of keywords or superficial descriptions. Poor content will not only underperform in classic search results but also fail to be picked up by AI Overviews as a trusted source of information.

Possum and Hawk are two local algorithm updates that specifically affected how businesses appear in local results. Possum diversified the range of listings shown by filtering out businesses that were too close together or seen as redundant, while Hawk refined this filtering to ensure that similar businesses in physical proximity were treated more fairly. These updates taught us that proximity and unique relevance still matter. Even though AI features are now prominent, Google still draws on the fundamentals of local search logic when deciding which businesses to recommend or summarise in an overview.

Small business owners must therefore treat these traditional factors as part of their foundation. This means having well-written, locally focused content, clear business categorisation, accurate location and service data and a website that signals quality and relevance. These elements feed into both classic ranking mechanisms and the AI models that generate Overviews.

The Growing Importance of EEAT for Local Discovery

Another pillar of modern local SEO is EEAT — experience, expertise, authority and trust. With AI Overviews summarising information from multiple sources, Google is placing increasing emphasis on putting businesses that demonstrate real credibility in front of users. For a small business, demonstrating EEAT means showing that you not only exist but are genuinely good at what you do.

EEAT plays out in multiple ways. On your website, it means publishing detailed service descriptions, case studies, customer success stories and content that reflects real experience. On your Google Business Profile, it means gathering authentic reviews and responding to them in a professional manner. Together these signals help Google’s systems — whether traditional algorithms or AI models — understand that you are a credible, trustworthy local business.

Without deliberate attention to EEAT, your business risks being overshadowed by competitors with stronger authority signals, even if they are further away physically. In the age of AI Overviews this is particularly important, because Google is looking for signals that a business is not just nearby but also the best answer to a user’s query.

Citation Building as a Trust Signal

One of the most underrated elements of local SEO remains citation building. Citations are mentions of your business name, address and phone number across the web — in directories, industry sites, review platforms and local business listings. Consistent, accurate citations help Google verify your business information and build trust.

For small business owners, a disciplined citation strategy means ensuring your NAP is identical across every platform, from Google Business Profile to Yelp, Bing Places and other directories. Discrepancies confuse search systems and can dilute trust, making it harder to rank well in traditional local packs or be included in AI Overviews. Consistency tells Google that your business is legitimate and stable.

Citation building also helps strengthen your online footprint beyond your own website and Google Business Profile. AI Overviews increasingly draw on a wide range of trusted sources, so the more reliable signals you have out there, the more Google’s systems can confidently include you in summaries that appear for local searches.

How Small Business Owners Should Respond

In 2026 local SEO is no longer a single tactic but a comprehensive strategy that encompasses AI optimisation, quality content, strong business trust signals, authority building and consistent citations. Small business owners should think beyond simple keyword targeting and focus on building a genuinely cohesive digital presence that satisfies both traditional search logic and the newer AI-driven mechanisms that present results today.

Start with a fully optimised Google Business Profile, ensure your website content is authoritative and helpful, gather and manage reviews to demonstrate EEAT, and build consistent citations across trusted platforms. By doing this you give your business the best possible chance of appearing not just in classic local packs but also in the AI Overviews that are increasingly defining local discovery.

For small businesses willing to evolve their approach, these developments represent an opportunity to reach nearby customers more effectively than ever before. Local SEO in 2026 is about relevance, trust and visibility — and the businesses that invest in these pillars will lead their markets. The tools have changed. The rules are different. And for small businesses, the opportunity has never been greater so call us today and we’ll sort you out!