How Generative AI Is Changing Local Business Discovery on Bing

The local search landscape has officially entered its “Agentic Era.” In 2026, the traditional “Local Pack” is no longer the only way customers find your storefront. On Bing, the integration of Generative AI via Microsoft Copilot has fundamentally shifted the path from discovery to conversion.

Between April 2024 and March 2025, the ten most-used AI chatbots saw 55.2 billion visits—an 80.92% year-over-year jump. More critically, AI-powered assistants and large language models (LLMs) will handle roughly 25% of global search queries by 2026, per Gartner.  If your business isn’t optimized for these complex, conversational prompts, you simply don’t exist in the AI-generated answer.

At Directory One, we’ve spent the last decade helping local businesses navigate every major algorithm shift. Today, we are leading the charge in generative AI search engine optimization, ensuring our clients aren’t just listed, but cited as the definitive local answer.

Understanding Generative AI Search vs. Traditional Local Search

Before diving into optimization tactics, you need to understand what generative AI search actually is—and how it differs fundamentally from traditional local search discovery.

Traditional local search relied on rankings. A business’s position in Google Maps, Google Business Profile, or local search results determines visibility. Customers clicked your listing, read reviews, and made decisions based on accumulated ratings.

Generative AI search synthesizes information from multiple sources and presents conversational answers directly to users. Copilot Search in Bing seamlessly blends the best of traditional and generative search together to help you find what you need, with intelligently curated information from Copilot Search displaying easy-to-digest summaries, clear answers, or smart layouts to help users find what they’re looking for.

The critical distinction: The generative AI segment alone holds 54.2% of the AI search market share in 2025, reflecting user preference for conversational, answer-style experiences over purely keyword-based searching.

Users no longer ask “coffee shops near me”—they ask conversational questions and expect immediate, synthesized answers. Bing’s generative AI search delivers exactly that, selecting which local businesses to feature based on trust, relevance, and data structure.

Why Generative AI Matters for Local Business Discovery

In AI-driven Bing results, users may never scroll to page one. Instead, they see:

• AI summaries
• Local recommendations
• Business comparisons

A study found that 87% of consumers read online reviews for local businesses before making a decision. Generative AI now aggregates those signals automatically. If your business is not well-represented across trusted sources, it may not appear at all.

How Generative AI Changes Bing Local SEO

1. Entity Recognition Replaces Keyword Matching

Bing’s AI focuses on entities—business names, locations, services, and reputation—rather than just keywords.

Local businesses must ensure:

• Consistent NAP (Name, Address, Phone)
• Accurate service descriptions
• Clear category alignment

Microsoft confirms that entity understanding is central to Bing’s ranking systems.

2. Citations and Reviews Power AI Recommendations

Generative AI pulls from:

• Bing Places
• Yelp
• Industry directories
• Review platforms

According to Moz, citation consistency is a top local ranking factor. This is where experienced agencies like Directory One help local brands strengthen citation networks and authority signals across Bing’s ecosystem.

4 Generative AI Search Optimization Tips for Local Brands

To dominate local discovery in 2026, you need to pivot from keyword-stuffing to “Conceptual Completeness.” Here is how Directory One recommends structuring your local presence:

1. Optimize for “Best of” and Attribute-Based Queries

Generative AI doesn’t just look for your name; it looks for your attributes. If your website doesn’t clearly state “pet-friendly patio,” “EV charging available,” or “emergency 24/7 service” in plain text, the AI will skip you in favor of a competitor who does.

2. Implement Deep Schema Markup

Structured data is the bridge between your site and the AI. Use LocalBusiness, Review, and FAQ schema to tell the engine exactly what you do. Sites with proper schema are 3x more likely to be cited by AI search engines compared to those without.

3. Focus on “Sentiment” in Reviews

AI search engines like Perplexity and Copilot perform sentiment analysis on your reviews. They don’t just count stars; they look for recurring themes. If your reviews frequently mention “fast turnaround” or “honest pricing,” the AI will use those terms as selling points in its generated summary of your business.

4. Create “Hyper-Local” Landing Pages

AI favors specificity. Instead of one broad page, create landing pages for specific neighborhoods and service combinations (e.g., “HVAC Repair in River Oaks” vs. “HVAC Repair in Houston”). This helps the generative AI search engine optimization agency model accurately contextualize your geographic reach.

Comparing Best Generative AI Search Engines for Local Discovery

Future-Proof Your Local Brand with Directory One

Local discovery is no longer a static map; it is a live conversation. To stay ahead, your business needs a partner that understands the technical nuances of generative AI search optimization.

Directory One combines decades of local SEO experience with cutting-edge generative AI services to ensure your business is the one the AI recommends. We don’t just optimize for bots; we optimize for the customers who are using those bots to make buying decisions. To explore AI-ready local SEO strategies, visit https://www.directoryone.com/ or call 713.269.3094 for expert guidance.