Over the past few weeks, Google has started showing AI Overviews inside local search results. As a result, many businesses are seeing a sharp drop in visibility for their Google Business Profile and local listings. In some cases, visibility has fallen by 50 percent or even more.
This change happens because the AI Overview is replacing the traditional local 3 pack. Earlier, users could easily see nearby businesses, reviews, photos, and directions. Now, the AI summary takes that space, which means fewer people click on real business listings.
Joy Hawkins explained this shift in detail in her blog post titled AI is Quietly Taking Over Local SEO No One’s Ready for This. She has also been sharing real examples on X over the last few weeks, showing how AI Overviews are changing local results.
In one example, the AI Overview fully replaces the local pack. On one side, users see an AI-generated summary. On the other side, accounts without AI Overviews still show the normal local 3 pack. This clearly shows how much space local businesses are losing.
Joy also shared an example from December 30 where the AI-powered local pack pushed down traditional listings. According to her, this feature reduces traffic to Google Business Profiles while increasing clicks on ads.
I've been tracking AI powered local packs. This horrible feature displaces/replaces the traditional 3-pack. In my write-up about this, I talked about how it's lowering traffic to Google business profiles while increasing clicks to ads.
— Joy Hawkins (@JoyanneHawkins) December 30, 2025
I thought it going down from 3 businesses… pic.twitter.com/4fIFhX2uJb
Overall, this update is a big shift for Local SEO. Businesses that rely on Maps visibility may see fewer calls, clicks, and visits unless they adapt quickly. Keeping profiles active, strong, and trusted is now more important than ever.
