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How AI Search Is Changing the Way People Find Local Contractors — the 2026 Data

Homeowners are increasingly asking ChatGPT, Google's AI, and Perplexity who to call — and those tools name only a handful of businesses. Here's what the latest research shows, with sources.

Updated 2026-06-26 · 6 min read

Short answer

As of 2026, roughly 45% of U.S. consumers have used an AI tool to find a local business (up from about 6% a year earlier), and 22% of homeowners specifically use AI to research contractors. At the same time, about 68% of Google searches now end without a click. The practical result: when a homeowner asks an AI assistant for the "best HVAC in Las Vegas," it returns only three to five names — so being one of those named businesses now matters as much as ranking on Google's first page.

People are now asking AI who to hire — and fast

This isn't a prediction; it's measured behavior. In BrightLocal's 2026 Local Consumer Review Survey (1,002 U.S. consumers), 45% said they used an AI tool to find a local business in the past year — up from about 6% a year earlier. AI has become the third most-used local-discovery channel, behind only Google and Facebook.

Home services specifically is moving just as fast. In Scorpion's 2026 State of Home Services Marketing Report (2,000 homeowners surveyed with Dynata), 22% of homeowners said they use AI tools like ChatGPT to research or find contractors — while 83% still start their search online overall. The catch from the same report: 80% of home-services business leaders admit they're unsure how to appear in AI-driven search results. That gap is the opportunity.

The results page is disappearing — and AI names only a few businesses

The bigger shift is what happens after someone searches. According to SparkToro and Similarweb's clickstream analysis, about 68% of U.S. Google searches ended without any click in early 2026 — up from roughly 49% in 2019. People increasingly read the answer at the top and never visit a website.

When that answer is AI-generated, the stakes concentrate. Where a classic results page lists ten blue links, an AI assistant typically names just three to five businesses for a query like "top-rated plumber near me." You're either in that short list or you're invisible for that question. And Seer Interactive's analysis of 3,119 search terms found that when an AI Overview appears, organic click-through rate fell about 61% year-over-year — but brands actually cited inside the AI answer earned roughly 35% more clicks than uncited competitors on the same query.

How often does AI show up for home-services searches?

More than most contractors realize. WebFX studied 237,990 U.S. home-service queries in 2025 and found an AI Overview appeared on 17.7% of them — and the rate climbs sharply for research-style questions:

  • Informational queries ("how long does an AC unit last?"): 37.1% show an AI Overview
  • Commercial queries ("best HVAC company Las Vegas"): 15.9%
  • Transactional queries ("AC repair near me"): 13.2%

In other words, the homeowner doing early research — exactly the person you want to reach before they're ready to call — is the most likely to get an AI answer instead of a list of websites.

Why this rewards clear businesses, not just big ad budgets

Here's the encouraging part for a local shop: AI assistants don't pick names the way paid search does. They reason over an entity — a business they can confidently identify, with consistent details and trustworthy signals. When an AI is deciding who to name for "best HVAC in Henderson," it's effectively asking: Is this a real company? Where does it operate? What does it do? Do independent sources agree? Can I state a clear, accurate fact about it?

When those answers are consistent and machine-readable, the model surfaces and cites the business. When they're fuzzy or contradictory, it falls back to whoever is clear — often a national directory or a tidier competitor. That's why ChatGPT recommends some contractors and not others, and it's the core idea behind Answer Engine Optimization (AEO).

What a Las Vegas contractor should do about it

You can't control an AI model, but you can control the signals it reads. The highest-leverage moves, in order:

  • Be a clear entity. Consistent name, address, and phone everywhere; structured data (schema) that states what you do and where; a complete, claimed Google Business Profile.
  • Get into Bing's index. Most AI assistants retrieve from Bing, not Google — and it's the step almost no one does. See how to get cited by ChatGPT via the Bing index.
  • Publish answer-ready content. Clear, question-shaped pages that an AI can quote and attribute to you.
  • Build real reviews. Authority is the trust signal AI leans on; it's also the one you can't fake.

None of this requires a bigger ad budget — it requires being the most legible business in your market. That's exactly what a free AI Visibility Audit measures: whether AI engines can find, understand, and recommend you today.

Takeaway — AI assistants now shape how a large and growing share of homeowners find contractors, and they name only a few businesses per question. The shops that win are the ones AI can clearly identify and trust — a clear entity, present in Bing's index, with answer-ready content and real reviews. That's winnable for a local Las Vegas shop, regardless of budget.

Sources

  1. Local Consumer Review Survey 2026 (45% used AI to find a local business)BrightLocal (Feb 2026)
  2. 2026 State of Home Services Marketing Report (22% of homeowners use AI to find contractors)Scorpion / Dynata (Feb 2026)
  3. In 2026, Less Than One Third of Google Searches Still Send a Click (68% zero-click)SparkToro / Similarweb (Jun 2026)
  4. AI Overviews in Home Services: A Study of 237K+ Queries (17.7% show an AI Overview)WebFX (Sep 2025)
  5. AIO Impact on Google CTR (organic CTR −61%; cited brands +35% clicks)Seer Interactive (Nov 2025)

Frequently asked

Do people really use ChatGPT to find local contractors?

Yes. BrightLocal's 2026 survey found 45% of consumers used an AI tool to find a local business in the past year, and Scorpion's 2026 home-services report found 22% of homeowners specifically use AI tools like ChatGPT to research contractors. AI is now the third most-used local-discovery channel behind Google and Facebook.

Is traditional Google SEO dead, then?

No — but it's changing. About 68% of Google searches now end without a click, and AI Overviews appear on roughly 17.7% of home-service searches, so ranking #1 no longer guarantees the visit. The work now is being the clear, citable business that both Google's AI and assistants like ChatGPT name — which overlaps heavily with good local SEO.

How many businesses does an AI assistant recommend?

Typically only three to five per question, versus a full page of links in classic search. That's why being one of the named businesses matters so much more than it used to.

How do I find out if AI recommends my business?

Run a free AI Visibility Audit. It checks whether AI engines can find, understand, and recommend your shop across the signals that decide who gets named — and shows the specific gaps to fix.

See if AI recommends you — free

We run your business through ChatGPT, Perplexity and Google AI and send you a one-page report.

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