Local Falcon’s latest white paper highlights how proximity plays a new role in AI-generated local results, why businesses should pay attention, and new strategies to stay visible
Erie, PA, May 21, 2025 (GLOBE NEWSWIRE) -- Local Falcon, the leader in geo-grid local rank tracking and AI-driven local SEO, released a white paper analyzing how Google AI Overviews are impacting local visibility for businesses. Based on 60,000 real-world simulations across 4,423 businesses in 20 countries, the findings show a significant shift in how Google determines which businesses show up, and in what order.
Proximity still impacts visibility, though not the way it once did. While Google AI Overview doesn’t use distance to rank businesses, it still influences whether a business shows up at all. Businesses closer to the searcher appeared in AI Overview results 72.0% of the time, compared to 68.5% for those slightly farther away, even within a tight 4-mile radius. This shows that proximity still matters for inclusion, even if it no longer determines rank order.
“This is one of the most significant updates to local search in years,” said David Hunter, CEO of Local Falcon. “ChatGPT and Google AI Overviews are changing the rules - and most businesses don’t even realize it yet.”
Additional key findings of the Local Falcon report include:
- Results vary based on query type and local context. Lifestyle and service-related queries, such as “fitness classes near me,” show greater geographic sensitivity, whereas broad “best of” queries in dense metro areas rely more on business authority than proximity. Including a place name, such as “Chicago” or “Midtown,” often reduces the chance of an AI Overview being triggered.
- Service businesses are the most exposed. Some companies, like cell phone stores and insurance brokers, show consistent ranking across search locations. Others, especially service-based businesses like personal injury attorneys and creative professionals, exhibit higher volatility, making AI Overview visibility harder to predict or control without broader optimization strategies.
- One search location isn’t enough. Since AI Overview results change based on subtle shifts in searcher location, time, and phrasing, relying on a single rank report is no longer enough. Local Falcon’s geo-grid technology reveals these blind spots by scanning across entire neighborhoods and city regions multiple times.
While AI Overviews are not fully local at this time, proximity still plays a significant role. Understanding AI Overview appearances and tailoring business strategies based on category, query intent and location-specific advantages allows local businesses to maintain and grow their visibility. Staying visible on Google in 2025 means going beyond traditional SEO and staying up to date with how AI-driven results are being shaped.
For further analysis, including detailed data and strategic recommendations for businesses looking to stay ahead, Local Falcon’s full whitepaper is available here: https://www.localfalcon.com/blog/whitepaper-studies-the-impact-of-google-ai-overviews-on-local-business-search-visibility
A summary of Local Falcon’s new AI Overview Tracking feature can be found at: https://www.localfalcon.com/features/google-ai-overview
About Local Falcon
Local Falcon is a leading provider of local SEO tools, offering businesses, marketing agencies, and enterprises worldwide the ability to track, manage, and enhance their local search visibility. With over 100,000 global users, Local Falcon’s suite of tools, powered by Falcon AI, delivers deep insights into local SEO performance, helping clients maximize their online visibility and outperform competitors. The company is headquartered in Erie, Pennsylvania, and continues to drive the future of local search analysis through innovative, data-driven solutions.
For more information, please visit https://www.localfalcon.com
CONTACT: Joanne Hogue Smart Connections PR for Local Falcon +1 (410) 658-8246 joanne@smartconnectionspr.com
