By on Sep 29, 2025
Picture this: a customer asks their phone, “Where’s the best Thai food near me?” Instead of scrolling through ten blue links, the answer pops up in a friendly chat window: “Try Lotus Thai. They have 4.8 stars and fast delivery in your area. Click here to place an order.”
That is the future of discovery. It is called AI Chat Ads, and it is already starting to roll out across platforms. For local businesses, this could be the most important shift since mobile search.
AI Chat Ads show up directly inside conversational answers generated by tools like Google’s Search Generative Experience or AI assistants. Instead of being buried in a list of results, your business is featured as part of the response.
From a customer’s perspective, it feels more like a recommendation than an advertisement. And for business owners, it creates a chance to meet people in the exact moment they are asking for help.
Customer behavior is changing fast. Pew Research reports that younger users are already relying on AI tools for answers instead of traditional search. If your business is not part of those generated conversations, you may never even be seen.
Being named in an AI-generated answer also carries trust. People often assume that if the AI suggests your business, it must be reliable. That kind of credibility can feel more powerful than simply appearing on page two of Google.
Say you own a plumbing company in Dallas. On your website, you publish a short article called “How much does it cost to fix a leaking faucet in Dallas?” You list a price range, explain the variables, and add a note about requesting a quote.
Now imagine a homeowner types into an AI tool, “What’s the cost to fix a faucet in Dallas?” The tool could pull your content and reply: “Repairs typically cost $80–$120 in Dallas. You can contact Dallas Plumbing Co. for a free quote.”
Suddenly, your name is part of the answer itself, not hidden among links. That single piece of content just became a lead generator.
This does not replace what you are already doing. It adds another layer. You still want:
SEO for Google and Bing
A solid local presence on maps and directories
Social media visibility
But AI chat is where search is heading. Ad Age notes that brands preparing for conversational search now are positioning themselves ahead of the curve.
You do not need to become a tech expert. A few practical steps can put you in the right position:
Write Q&A style content on your site, based on questions customers ask you all the time.
Keep answers short, fact-based, and local (mention your city).
Make sure your website is easy to scan, so AI tools can “read” it clearly.
Watch for opportunities to test AI chat ad placements as platforms expand.
The goal is not to do everything at once but to make sure you have a foothold in this new space.
Even though AI might introduce your business, the human side still seals the deal. Customers will reach out expecting clarity, friendliness, and trust. That means the basics—answering the phone, showing up on time, delivering great service—matter more than ever.
The technology may open the door, but your people skills are what close it.
If this feels overwhelming, start small. Publish one helpful Q&A on your site this month. Test one new channel for visibility. Track results. As you see traction, add more.
The businesses that get ahead will not be the ones who wait for a perfect roadmap. They will be the ones who take action early, learn as they go, and keep adapting.
At Umbrella Local, we help small businesses stay ahead of these shifts without getting bogged down in tech. From writing content that AI tools can recognize to exploring safe ways to test new ad formats, our team makes sure you stay visible where your customers are searching—and now, chatting.
Schedule a call today to find out how your business can start showing up not just in search results, but in conversations.
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