Over the past few weeks, Google's introduction of AI Overviews in local packs has triggered significant visibility declines for many businesses. This new feature, which replaces the traditional local pack format, has caused some businesses to experience drops in visibility of 50% or more for their Google Business Profile and local listings.
Joy Hawkins, a well-known expert in local SEO, has been closely monitoring the effects of these AI-powered local packs. In her blog post titled AI is Quietly Taking Over Local SEO! No One’s Ready for This, Hawkins detailed how these changes are impacting businesses. According to her findings, the AI Overviews often prioritize fewer businesses - sometimes showing only one or two options instead of the traditional three. This shift has led to a noticeable decline in website traffic and calls generated through Google Business Profiles.
"According to data from Places Scout, AI Local Packs are already appearing on roughly 8% of keywords (and rising)", Hawkins wrote. As the feature becomes more prevalent, more businesses could see their visibility impacted.
Hawkins shared examples on social media to illustrate the impact, including side-by-side comparisons of search results with and without AI Overviews. These visuals demonstrate how the AI-powered format displaces the classic 3-pack format, leaving some businesses out of the spotlight entirely.
In a tweet posted on December 30, 2025, Hawkins explained: "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." Alongside this statement, she also provided screenshots showing how calls to businesses noticeably drop when the AI Overviews replace the usual layout.
Glenn Gabe, another industry expert, also weighed in on the changes via social media, confirming the growing prevalence of AI-powered local packs. In a tweet dated January 15, 2026, Gabe remarked, "Oh damn, [Joy Hawkins] is right. AI Local packs are showing up more and more. I just saw one -> AI is Quietly Taking Over Local SEO! No One’s Ready for This." He added, "Here's the problem:
*Fewer Spots: They often show only 1 or 2 businesses instead of the usual 3.
*No Call Buttons: Many…"
As AI Overviews continue to expand in Google's local search results, businesses are grappling with the consequences. The reduced visibility and absence of traditional features, such as call buttons, are reshaping how customers interact with local businesses online. Hawkins' analysis suggests that while this change benefits Google's ad revenue, it presents new challenges for businesses relying on organic visibility through Google Business Profiles.
With AI Local Packs appearing on an increasing number of searches, these changes may signal a pivotal shift in the landscape of local SEO - a shift for which many businesses may not yet be prepared.
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