AI Search & Local Buying Behavior | 2025 McKinsey Insights

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McKinsey AI Search Study 2025: How AI is Reshaping Local Business Discovery | D&D SEO Services

McKinsey AI Search Study 2025: How AI is Reshaping Local Business Discovery

Key Summary

A new McKinsey study, "The next frontier of AI-powered search in commerce" (2025), confirms what many business owners haven't realized yet: AI search is now used at every stage of the buying journey — from initial research to final purchase decisions. Consumers are no longer jumping between Google, YouTube, Amazon, Reddit, and reviews. Instead, they're asking ChatGPT, Claude, Gemini, Copilot, Google AI Overviews, and Perplexity — and getting one clear answer.

The shift is massive: 73% of consumers now use AI to learn about products and services. 60% use AI to understand features and details. 61% compare options using AI. 60% summarize reviews using AI. And across major sectors, 40–55% of consumers now make purchase decisions inside AI search — without ever clicking a website.

If your business isn't showing up in AI answers, you're invisible.

The New Reality: AI Isn't "The Future of Search" — It's Here Now

  • In 2023, ChatGPT felt like a novelty
  • In 2024, AI Overviews began reshaping Google
  • By 2025, AI search is now a core part of how people shop, compare, and choose

McKinsey's survey makes it clear: Consumers are using AI-powered search across the entire buyer journey — not just to explore, but to evaluate and decide.

This includes:

  • Awareness
  • Product and service research
  • Competitive comparison
  • Personalized recommendations
  • Price and feature analysis
  • Final purchase decisions

The search engine is no longer a list of links. It's now a single AI conversation — with a single, confident answer.

How People Use AI To Search: The McKinsey Data

73% — Learning about a category or service

  • "What should I look for in a roofing contractor?"
  • "What factors matter when choosing a local SEO company?"
  • "What do I need to consider for bathroom remodeling?"

This is top-of-funnel — and AI now owns it.

If you run a bathroom remodeling company in Fort Myers, you want AI to mention you when someone asks, "What should I look for in a bathroom remodeler near me?" That means your site should clearly explain what to look for, common mistakes to avoid, and show example projects with real photos and outcomes.

The more clearly you educate, the more likely AI is to see you as a trusted explainer.

60% — Explaining features, specs, or service details

  • "What is a SEER rating for AC systems?"
  • "What does 'slab leak repair' mean?"
  • "What's the difference between LVP and laminate flooring?"

When people don't understand something — they now ask AI.

If you're an HVAC company, your content needs clear, jargon-free explanations of SEER ratings, system types, and efficiency. If you're a plumber, you need to answer "What is a slab leak?" in plain language, ideally on a dedicated page or FAQ section.

AI pulls these explanations when building its answers.

57% — Personalized recommendations

  • "Best dentist for implants near me?"
  • "Best HVAC service for older homes?"
  • "Best local moving company that handles pianos?"

This is where AI gets dangerous for businesses not prepared.

It doesn't just list options. It chooses winners. If you want to show up in "Best local moving company that handles pianos," you need services pages that mention "piano moving," a dedicated piano-moving page, and reviews that mention pianos.

The more specific you are, the more likely AI selects you.

61% — Comparing specific products and providers

  • "Compare Samsung vs LG for home appliances"
  • "Is Company A better than Company B for pool resurfacing?"
  • "Is Brand X worth the price?"

People now ask AI: "Tell me who's better — and why."

If customers are asking "Is [Your Company] better than [Competitor] for [Service]?" you need comparison content that shows side-by-side breakdowns, who you serve best, and why you're different.

If you don't provide that — AI will infer it for you.

60% — Summarizing reviews

  • "What do people like most about this med spa?"
  • "What are the common complaints about this plumber?"
  • "What do customers think about this moving company?"

Consumers don't read 150 reviews. They now ask AI to do it for them.

If you don't have consistent, recent, detailed reviews — AI will see that. And say so.

The Most Important Stat of All

McKinsey found: 40–55% of consumers now make purchase decisions inside AI search

This depends on the industry and includes healthcare, home services, financial services, restaurants, beauty, fitness, retail, travel, and automotive.

This will keep rising — fast.

What This Means for Local & Service-Based Businesses

Google alone is no longer enough.

You now need visibility in:

  • Google AI Overviews
  • ChatGPT
  • Claude
  • Gemini
  • Perplexity
  • Copilot
  • AI-powered review summaries
  • Generative "best of" lists

Consumers are no longer doing 8-step research journeys. They're doing one prompt and one answer. If you're not in that answer, you don't exist.

From Multi-Tab Chaos to One AI Conversation

Old behavior: Google search → Click 5 websites → Read reviews → Watch YouTube → Search Reddit → Compare → Check pricing → Decide later

New behavior: Ask AI → Get the answer → Choose

The AI Buyer Journey: One Single Experience

McKinsey gives this example:

Step 1 — Discovery

"What running shoes are best for stability and ankle support?"

AI answers with: Brands, Strengths, Use cases

Step 2 — Consideration

"Should I prioritize midsole cushioning if I have flat feet?"

AI answers with: Key design features, Benefits, Best matches

Step 3 — Purchase

"Give me two models under $140 that match that."

AI answers with: Shoes, Prices, Ranking logic

No scrolling. No reading 20 pages. No comparison charts. Just the answer.

This is already happening with:

  • Emergency plumbers
  • Local med spas
  • HVAC companies
  • Dentists
  • Moving companies
  • Local SEO agencies

This Changes SEO Forever — Here's How

To win in AI search, your content must:

  • Answer full questions
  • Explain pricing, pros & cons
  • Include comparisons (X vs Y)
  • Sound conversational
  • Reflect real customer language
  • Be easy for AI to extract
  • Show proof, not claims

SEO is not about ranking anymore. It's about becoming the best answer inside AI.

The Five Signals AI Looks For

  • Clear definitions: Explain services in everyday language
  • Concrete comparisons: Show how your service differs
  • Use cases & benefits: Show who it's for — and who it's not
  • Trust signals: Reviews, licenses, case studies, photos
  • Human-friendly language: AI is trained on real speech — not SEO fluff

Why Most Businesses Are Already Losing

If your content is thin, vague, generic, salesy, or missing key details, reviews, comparisons, or service specifics — AI won't cite you.

The good news? Most businesses can fix this — fast.

What You Need To Do Next

We help local and service businesses:

  • Show up in AI answers
  • Get cited in AI Overviews
  • Become the "recommended choice"
  • Build AI-optimized content structures
  • Create comparison pages AI trusts
  • Turn reviews into ranking signals
  • Build authority for AI algorithms
  • Future-proof visibility across platforms

If you're not appearing in AI search, you're already losing customers.

Ready to Reclaim Your Visibility in AI Search?

D&D SEO Services specializes in AI SEO, AI Overviews optimization, Generative Engine Optimization (GEO), Local SEO, and LLM SEO (ChatGPT, Claude, Gemini, Perplexity).

Let's find out where you stand — and what you're missing.

10 Frequently Asked Questions About AI Search

Q1. How is AI changing the way people search for local services?

AI now gives direct answers instead of a list of links. Customers ask ChatGPT, Gemini, Claude, and Google AI Overviews who the "best plumber near me" is — and AI chooses winners. If you're not selected, you're invisible in that moment.

Q2. Will Google still matter if AI is taking over search?

Yes — but Google is changing. Google now uses AI Overviews, which surface AI-generated answers at the top of results. Traditional rankings still matter, but they're no longer enough. You need to rank in AI answers too.

Q3. What does it take to get featured in AI search answers?

You need content that is clear, factual, educational, well-structured, and written in natural language. And it should be supported by trust signals like reviews, experience, location relevance, and comparisons.

Q4. Does my business need different SEO for AI search?

Yes — traditional SEO only focuses on Google rankings. AI SEO focuses on showing up in ChatGPT, Claude, Gemini, Perplexity, and AI Overviews. You need content that answers questions, explains details, and proves expertise.

Q5. How can I tell if my business is showing up in AI search?

You can test by asking AI tools questions like: "Best [service] in [city]," "Who offers [service] near me?," or "What do people say about [your brand]?" If you're not mentioned, you're not visible.

Q6. What type of content does AI pull into its answers?

AI systems pull from FAQs, service pages, how-to content, comparison content, review summaries, and authority pages. Thin or generic content is usually ignored.

Q7. What does McKinsey say about buying decisions and AI?

Their 2025 report shows 40–55% of consumers now make their final purchasing decision inside AI search results, without visiting a website. That shift is accelerating.

Q8. Should I worry if my reviews are inconsistent or old?

Yes. AI summarizes review sentiment. If your reviews are shallow, outdated, or full of complaints — AI will say so. Strong, recent, specific reviews help AI trust and recommend you.

Q9. Is this shift just happening in e-commerce, or local too?

It's happening in both. AI is now used to choose everything from plumbers, roofers, med spas, dentists, HVAC techs, movers, attorneys, and SEO agencies. Local service providers are already being evaluated through AI lenses.

Q10. What's the first step to becoming visible in AI search?

Start by strengthening two things: (1) Your content — make it clear, specific, and helpful, and (2) Your trust signals — especially reviews and proof of expertise. Then structure that content so AI can extract and cite it.

If You Take Nothing Else Away — Take This

Google is no longer the only search engine.

You must now optimize for Google AI Overviews, ChatGPT, Claude, Gemini, Perplexity, Copilot, voice agents, and generative search engines.

Consumers have already moved. Most businesses haven't.

About the Author

Danielle Birriel, Founder of D&D SEO Services

Danielle Birriel is a 10+ year SEO strategist and founder of D&D SEO Services, a Florida-based agency specializing in Local SEO, AI Search Optimization, Generative Engine Optimization (GEO), and AI-powered search visibility. Danielle has helped dozens of local and service-based businesses grow traffic, leads, and authority — not just in Google, but across AI ecosystems like ChatGPT, Gemini, Claude, and Perplexity.

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The future of search is here. The question is: will your business be found in it?

The Strategist Behind D&D SEO Services

I’m Danielle Birriel, founder of D&D SEO Services. For over 12 years, I’ve been helping local service businesses—from plumbers and HVAC companies to medspas, dentists, and in-home care providers—outrank competitors, attract more qualified leads, and turn online searches into paying customers.

I’m not here to sell you “SEO in a box.” I’m here to solve real problems local business owners face every day:

  • You’re buried on Google while competitors dominate the top spots.
  • Your phone isn’t ringing enough despite having great services.
  • Your Google Business Profile isn’t optimized and isn’t bringing in leads.
  • You’ve been burned by agencies promising results but delivering cookie-cutter strategies.
  • You don’t know if your marketing is actually working because you’re not getting transparent reporting.

I built D&D SEO Services to change that.