AI assistants drive surge in local business searches amid rating reliability concerns

A significant shift in consumer behavior is occurring as the percentage of Americans using AI assistants for local business recommendations rose from 6% to 45% in one year, according to BrightLocal’s 2026 Local Consumer Review Survey.

However, concerns are mounting regarding the reliability of the star ratings these AI tools utilize. Research published by FTC economist Devesh Raval indicates that most businesses average four stars or higher, even when they have documented complaints. Furthermore, nearly one-third of reviews consist solely of a numerical rating without supporting text, making it difficult to distinguish quality.

To combat fraudulent activity, the Federal Trade Commission (FTC) finalized a rule in 2024 banning fake or bought reviews and undisclosed material connections. Since December 2025, the agency has begun issuing warning letters for violations, which can carry penalties exceeding $53,000 per instance.