Google’s AI Mode: What Local Marketers Need to Know Now

AI Mode: How We Got Here

Google’s recent announcement at Google I/O on May 20 marks the most significant development in the dynamic story of generative AI since the launch of ChatGPT. AI Mode, now available to all U.S. users on desktop and mobile devices, introduces an entirely new search experience powered by Gemini—Google’s response to ChatGPT.

This journey began in 2023 with the launch of Search Generative Experience (SGE), an opt-in AI search experiment. By 2024, AI Overviews (AIO), the public version of SGE, became mainstream, embedding AI answers at the top of the search page. Users quickly adapted, despite concerns from publishers and SEO professionals about reduced web traffic.

AI Mode is a direct response to the emergence of AI-driven competitors like ChatGPT and Perplexity. However, none match Google’s extensive reach. Our recent Consumer Behavior Index found that 80% of consumers regularly use Google for local searches, compared to just 11% who have tried ChatGPT. Thus, AI Mode’s launch significantly influences the broader adoption of generative AI in search.

What Is AI Mode?

AI Mode is now accessible in Google’s desktop search interface as a new tab alongside Images, Videos, and News, and via an icon in the search bar on Google’s homepage. Mobile users can access AI Mode through the Google app after updating.

For marketers, AI Mode underscores the importance of detailed content. AI Mode uses a “query fan-out technique,” performing multiple related queries simultaneously to deliver comprehensive answers. Marketers must highlight key differentiators prominently on websites and third-party platforms. As Alphabet CEO Sundar Pichai noted, AI Mode users typically enter longer queries, emphasizing the need for long-tail optimization.

How AI Mode Handles Local Queries

Local searches are central to AI Mode, prominently showcased in Google’s demonstrations and examples. AI Mode results could replace the familiar Google 3-Pack, shifting from limited local results to comprehensive, detailed answers.

AI Mode draws from various sources—local business websites, press mentions, social media (like Reddit), and directories such as Yelp. However, Google Maps content remains central. Clicking on businesses in AI Mode reveals a Knowledge Panel similar to the existing Business Profile, offering essential details like hours, ratings, photos, and appointment links.

The Knowledge Panel on the right appears when you click a business in the carousel on the left.

Optimizing for AI Mode

An accurate and detailed Google Business Profile is now crucial. Your website remains the core supporting asset, enabling you to differentiate your offerings effectively. Traditional SEO aimed at page-one rankings or making it into Google’s top local results, but AI Mode reduces displayed results significantly. Queries now generate fewer, more targeted recommendations—making differentiation essential.

This trend aligns with the findings in our 2025 Consumer Behavior Index, which emphasizes consumers’ growing reliance on multiple channels for local discovery. Consumers now regularly consult multiple platforms, from AI tools to social media, validating information across each before making decisions. To succeed in AI Mode, marketers must adopt a cross-platform strategy, ensuring their content is credible, consistent, and contextually relevant across every consumer touchpoint.