Survey shows traditional search dominates local business discovery

Traditional search engines maintain overwhelming dominance in local business discovery, with 93.2% of consumers trusting Google over AI assistants, according to new research released July 14, 2025. The comprehensive study by Youtech reveals that despite growing AI adoption, most consumers continue relying on familiar search platforms for finding restaurants, home services, and automotive businesses.

The 2025 AI & Local Search Consumer Report, based on responses from 150 consumers surveyed June 26-28, 2025, provides detailed insights into how Americans approach local business discovery. According to the study, 78.7% of respondents primarily use traditional search engines like Google, Bing, and Yahoo when searching for local businesses, while only 2.0% favor AI assistants such as ChatGPT, Gemini, and Claude.

Summary

Who: Youtech, a digital marketing agency, surveyed 150 US consumers about local business search preferences, with findings affecting local businesses, marketing professionals, and search platform developers.

What: Research revealed 93.2% of consumers trust Google over AI assistants for local business discovery, with traditional search engines used by 78.7% of respondents compared to 2.0% preferring AI tools like ChatGPT, Gemini, and Claude.

When: The survey was conducted June 26-28, 2025, with findings announced July 14, 2025, during a period of expanding AI search capabilities from major technology companies.

Where: The research focused on US consumer behavior across local business categories including restaurants (88%), home services (55.3%), and automotive (42%), with implications for businesses in these sectors nationwide.

Why: Despite growing AI adoption, consumers prioritize accuracy (56.8%) and trust familiar platforms for high-stakes local business decisions, creating both challenges and opportunities for businesses optimizing search presence across traditional and AI-powered platforms.

Traditional search maintains grip on local discovery

The survey findings highlight persistent consumer preference for established search platforms. When asked about trust levels, respondents demonstrated overwhelming confidence in traditional Google Search over AI assistants for local business evaluation. More than half of consumers (57.3%) indicated their current search preferences will remain unchanged within the next six months.

However, emerging usage patterns suggest potential shifts ahead. According to the research, 27.3% of respondents used AI assistants to find local businesses within the past week, indicating growing trial adoption despite trust concerns. An additional 12.7% report using both traditional search and AI equally for local business discovery.

The data aligns with broader trends observed across the digital marketing landscape. Google's expansion of AI Mode to all US users in May 2025 demonstrated the search giant's commitment to integrating artificial intelligence capabilities while maintaining traditional search foundations. Similarly, recent analysis showing Wikipedia dominates Google's AI Mode with 12.02% of citations suggests consumers gravitate toward authoritative sources in AI-powered search experiences.

Restaurant and home services lead search categories

Business category preferences reveal specific patterns in local search behavior. Restaurants and food services dominate consumer searches at 88.0%, followed by home and home improvement at 55.3%, and automotive services at 42.0%. These findings correlate with industries where real-time information, customer reviews, and visual content significantly influence decision-making.

Beauty and personal care services capture 34.7% of local search activity, while health and fitness businesses account for 32.0%. Professional services including physicians and surgeons (29.3%), education and instruction (28.7%), and dental services (26.7%) demonstrate moderate search volumes. Legal services and real estate represent smaller portions at 14.7% and 11.3% respectively.

The category distribution reflects consumer priorities for businesses requiring immediate evaluation through reviews, hours, and availability. According to the survey, 79.1% of consumers consider real-time information extremely or very important when searching for local businesses, with 34.5% describing it as a deal-breaker when missing.

Accuracy and reliability drive consumer preferences

Consumer decision-making factors reveal clear preferences for information quality over convenience. When choosing between AI and traditional search, 56.8% of respondents prioritize accuracy of information, while 20.1% emphasize familiarity with the tool. Speed of results ranks third at 12.9%, followed by ease of use at 10.1%.

For local business searches specifically, consumers value customer reviews and ratings most highly at 33.6%, followed by contact details and hours at 29.5%. Photos and menu or service details capture 23.3% preference, while directions and location information account for 13.7%.

These preferences illuminate challenges facing AI assistants in local search adoption. According to the research, 39.1% of consumers require more accurate and up-to-date business information before switching to AI for local discovery. An additional 36.8% want lower-cost or free access to premium AI features, while 15.0% seek better integration with maps and directions.

The accuracy demands reflect broader industry concerns about AI-generated content reliability. Recent studies showing 35% of top websites now block AI web crawlers highlight tensions between content publishers and AI platforms, potentially limiting data quality for AI-powered local search.

Consumer concerns limit AI adoption

Trust barriers significantly impede AI adoption for local business discovery. According to the survey, 31.7% of consumers worry about missing the "human touch" in AI recommendations, while 28.3% fear outdated or incorrect information. Privacy and data collection concerns affect 24.1% of respondents, and 15.9% cite lack of comprehensive local coverage.

These concerns extend beyond technical capabilities to fundamental trust issues. Despite 56.7% of consumers never having used AI assistants for local business searches, those who have engaged show increasing frequency. Among AI users, 27.3% conducted local business searches within the past week, while 10.7% searched within the past month.

The trust gap becomes more pronounced when considering AI rating influence on business perception. According to the research, 51.7% of consumers find AI ratings not influential when evaluating local businesses, while 37.6% consider them partially influential but not very significant. Only 10.7% view AI ratings as valuable data for business evaluation.

Current AI usage patterns reveal limited but growing adoption across consumer demographics. The survey found 54.1% of respondents rarely or never use AI assistants for any purpose, while 23.0% use them a few times per week. Daily users comprise 17.6% with multiple daily usage and 5.4% with once daily usage.

Demographic patterns shape search behavior

Consumer demographics provide additional context for local search preferences. The survey respondents included 32.7% aged 35-49, 30.7% aged 65 and older, 21.3% aged 50-64, and 15.3% aged 18-34. Educational backgrounds showed 30.7% with bachelor's degrees, 22.7% with master's degrees, and 17.3% with some college education.

Income distribution revealed 29.3% earning between $100,000-$199,999, 18.0% earning $50,000-$99,999, and 17.3% earning more than $200,000. Device usage for AI assistants favored mobile phones at 40.6%, followed by desktop/laptop computers at 28.9%, with 25.8% using AI equally across all devices.

These demographic patterns suggest broader adoption potential as younger, more technically oriented consumers increase AI usage. However, the data indicates even tech-savvy demographics maintain preference for traditional search when seeking local businesses, emphasizing the importance of trust and reliability over convenience.

Marketing implications for local businesses

The survey findings carry significant implications for local business marketing strategies. With traditional search maintaining dominance while AI adoption gradually increases, businesses must optimize presence across both platforms. According to the research, consumers seeking better AI experiences want improved local business database coverage (34.4%) and more personalized recommendations (30.5%).

Integration with popular map applications appeals to 25.0% of consumers, while direct reservation capabilities through AI interest 10.2% of respondents. These preferences suggest opportunities for businesses implementing structured data, schema markup, and comprehensive online profiles to improve visibility across search platforms.

The emergence of AI-powered search tools creates new optimization challenges for local businesses. The development of generative engine optimization (GEO) strategies becomes increasingly important as consumers begin experimenting with AI assistants for local discovery. However, the survey data indicates traditional search optimization remains the priority given overwhelming consumer preference for Google and similar platforms.

Marketing professionals must balance resource allocation between established search engine optimization and emerging AI platform optimization. The research suggests immediate focus on traditional search while gradually building AI visibility as consumer adoption increases and trust barriers diminish.

Industry response and future outlook

The digital marketing industry continues adapting to evolving search behaviors while addressing consumer preferences revealed in the survey. Recent expansions of Google's AI Mode to Workspace accounts demonstrate continued integration of AI capabilities within familiar search environments, potentially addressing consumer familiarity preferences.

However, concerning trends in click-through rates as AI features expand highlight challenges for local businesses dependent on search traffic. The survey data suggests consumers value comprehensive results with multiple sources (34.5%) and direct links to business websites (29.1%), emphasizing importance of maintaining traditional search visibility.

Looking ahead, the research indicates gradual rather than dramatic shifts in local search behavior. With 14.0% of consumers expecting to use AI more than traditional search within six months, and 19.3% uncertain about future changes, local businesses have time to develop multi-platform strategies addressing both current preferences and emerging trends.

The survey's findings underscore that successful local business marketing requires understanding consumer trust patterns, information preferences, and adoption timelines. While AI assistants gain traction through improved accuracy and integration, traditional search platforms retain overwhelming consumer confidence for local business discovery decisions.

Timeline

• June 26-28, 2025: Youtech conducts survey of 150 consumers about AI and local search preferences
• July 14, 2025: Youtech announces survey findings via press release and industry outreach
• July 15, 2025: 2025 AI & Local Search Consumer Report distributed to media outlets and marketing professionals
• May 1, 2025: Google opens AI Mode to all US users with local business integration
• July 2, 2025: Google extends AI Mode to Workspace accounts expanding business user access
• June 16, 2025: SEO expert releases AI search content optimization checklist addressing local optimization needs
• July 2, 2025: Wikipedia leads among top domains in Google's AI Mode search results with 12.02% share
• July 2, 2025: ChatGPT referrals surge while Google searches hit zero-click records affecting publisher traffic