By Vicky Sidler | Published 23 December 2025 at 12:00 GMT+2

You know a marketing trend has peaked when it sounds like a weight-loss scam. “Rank #1 in ChatGPT in 90 Days!” is the new “Lose 10kg in a week with this ancient fat-burning fruit.”

In a recent episode of The Marketing Mechanic, Dennis Yu—a former Yahoo engineer and founder of Local Service Spotlight—called out the madness. He didn’t whisper it politely. He said it straight. For local businesses like plumbers, landscapers, roofers, and electricians, AI SEO is nonsense dressed up in buzzwords.

TL;DR:

• Most AI tools like ChatGPT pull from the same info as Google

• If you’re doing the basics right for local SEO, you’re already feeding the AI layer

• You can’t “hack” your way into AI recommendations without doing the work first

• Those AI SEO tools making big promises are mostly selling hype

• Real reputation still matters more than machine learning tricks

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Table of Contents:

What Is AI SEO and Why Is Everyone Panicking?

You might have heard the term “Generative Engine Optimization” or “AI SEO” tossed around like it’s the second coming of Google. According to Yu, it’s not.

At best, it’s regular SEO with a new haircut. At worst, it’s a productized panic attack.

The big promise? If you’re not optimizing for AI search tools like ChatGPT or Perplexity, you’ll get left behind. The truth? AI answers come from the same places Google already checks: your website, online reviews, social media, and local directories.

So if you’re already doing solid local SEO, congratulations. You’re halfway up the AI ladder without even knowing it.

Let’s Break Down The Four Layers of AI Search:

Dennis Yu describes the AI search model in four layers. Think of it like a lasagna of digital truth.

1. Reality Layer:

This is what’s actually happening in your business. You’re doing the work. You’ve got branded vans, real customers, real reviews, and a crew that actually shows up. None of this is digital. It’s the real-world stuff you do every day.

2. Information Layer:

This is the digital trail of your real-world work. Reviews, Facebook posts, your website, job photos, YouTube videos, and directory listings. These are the raw materials AI can see. If it doesn’t show up here, it might as well not exist.

3. Search Layer:

This is where search engines like Google and Bing try to verify what’s real. They scan those reviews and listings and posts to figure out who’s legit. Bing pulls from the same pile as Google. The only difference is the logo.

4. AI Inference Layer:

This is where ChatGPT, Claude, or Grok take that info and stitch together a friendly summary. Nothing magical. Just a stitched-up answer based on what’s already online.

So if you’re trying to “rank” in ChatGPT but you haven’t done the groundwork in layers one to three, you’re chasing smoke. There’s no AI shortcut around real-world trust.

Why AI SEO Tools Feel Like a Scam:

Yu doesn’t mince words. Many of these tools are just recycling fear. They prey on your FOMO. You’re told AI is the future, and if you don’t act now, you’ll vanish.

But these tools often promise outcomes they don’t control. You can’t rank in AI tools unless you’re already doing well in local SEO. There’s no “magic prompt” that will make ChatGPT suddenly favor you over the well-reviewed plumber next door.

In Yu’s words, selling AI SEO tools is like selling a bathroom scale that promises weight loss. The tool doesn’t do the work. You still have to.

What ChatGPT Actually Said (Yes, He Asked It):

To prove the point, Dennis asked ChatGPT: Who are the best tree and landscaping companies in Bloomington, Indiana?

The AI named a couple, then backtracked and admitted others were also good, depending on visibility. And when pressed on how it chose those names, it explained clearly. It checks Google reviews, directory listings, and public mentions.

In other words, if you look good to Google, you look good to AI. It’s the same data in a different wrapper.

Why Google Is Slow to Embrace AI Results:

There’s a reason Google doesn’t serve AI answers for every query. AI summaries don’t make money. Traditional search shows ads. Ads make Google rich. So they’re careful.

According to Yu, AI results only show up in about half of Google searches, and usually for simple questions, not commercial ones. That means if someone is looking for “best plumber near me,” they’ll still see regular ads and local search packs.

So you don’t need to worry that Google is becoming obsolete. It’s protecting its cash cow. Which means the local SEO basics still work.

Stop Chasing Tools. Start Building Trust.

Here’s what Dennis Yu and every good marketer knows:

The most important thing is doing great work. The next most important thing is showing that work online.

Fancy tools don’t matter if your reviews are weak and your website says nothing useful. AI isn’t magic. It’s just a mirror. It reflects what’s already out there.

Want to get recommended by AI? Then:

• Collect real reviews from real customers

• Keep your website up to date with clear, helpful info

• Show up in the places your customers look (Google Business Profile, Yelp, Facebook)

• Post useful content that proves you’re active and trusted

Do that, and AI will notice. Skip that, and no amount of software can save you.

Put The Focus Back Where It Belongs:

Local SEO isn’t dead. It’s just got a new name. Ignore the hype. Do the work. And if some consultant tries to scare you into buying a new AI SEO system, remember what your grandmother said.

If it sounds too good to be true, it probably came from a guy selling magic beans.

If you want your real work to show up where it matters, start with clear messaging. That’s what people see first. And that’s what my 5-Minute Marketing Fix can help with. Use it to help you write one clear sentence that says what you do and why it matters.

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Related Articles:

1. AI Search Is Replacing Google Traffic Faster Than You Think

While this article explains why AI SEO is mostly smoke and mirrors, this one shows how user behavior is actually shifting. It’s the full picture you need.

2. Storytelling Beats Coding in the AI Economy

Real-world trust beats AI gimmicks. This post shows why human skills like storytelling will always outlast short-term tech trends.

3. OpenAI's $27B Loss Could Tank the Whole AI Industry

Still feeling pressured to chase every new AI tool? This article breaks down the shaky financial foundation behind the hype.

4. Ideal Client Profile: The Marketing Shortcut Small Businesses Miss

Want to build real trust with your audience? Start by defining exactly who they are. This article shows you how.

5. 10 Best Content Types for Small Business Marketing

The main article tells you to post helpful content. This one gives you the exact content types that work best for service businesses.

Frequently Asked Questions About AI SEO for Local Businesses

1. What is AI SEO and how is it different from regular SEO?

AI SEO is a buzzword for trying to optimise your content to rank in AI-generated answers like ChatGPT or Perplexity. But those tools pull from the same sources as Google. So if you're doing regular local SEO well, you’re already doing AI SEO.

2. Can I pay a consultant to help me rank better in ChatGPT?

You can pay them, but it won’t change the facts. ChatGPT ranks businesses based on public data like Google reviews, directory listings, and your website. No special tool can override weak fundamentals.

3. Is AI replacing Google as the main way people search?

It’s starting to shift, especially for simple questions. But for buying decisions like “plumber near me,” Google is still where most action happens because of ads and local search results.

4. What kind of content does ChatGPT look at when recommending businesses?

It checks things like your reviews, online presence, and mentions across the web—just like Google does. If you’re invisible online, AI can’t recommend you.

5. Are there tools that can help me optimise for AI search?

Yes, but most of them don’t do anything new. If a tool helps you get more reviews, update your listings, or write clear content, great. If it promises to hack the AI algorithm, skip it.

6. How do I actually get recommended by ChatGPT or Perplexity?

Focus on the basics: collect reviews, keep your site updated, post helpful content, and make sure your business is listed in local directories. That’s the information AI is pulling from.

7. Is AI SEO just a passing trend?

The idea of AI SEO is trendy, yes. But the need to be visible online is not. Think of AI tools as new wrappers around the same old data. If your online reputation is strong, you’ll be fine.

8. Should I be worried if I’m not using AI SEO tools?

No. If your website is active, your reviews are good, and your local listings are accurate, you’re already ahead of the game.

9. Why do so many marketers push AI SEO so hard?

Because buzzwords sell. Many are repackaging old advice in new language or trying to profit from fear. Stick with proven strategies.

10. Where should I start if I want to improve my visibility?

Start with your message. Make sure people know what you do, why it matters, and how to take the next step. Download the 5-Minute Marketing Fix to get your message clear in one sentence.