Is Your Home Service-Based Business Losing Traffic to AI Search Overlays?

In the rapidly-changing world of digital marketing, artificial intelligence (AI) is revolutionizing the way customers find home services online. For businesses like HVAC contractors, roofers, and plumbers, a significant shift is happening: AI is increasingly influencing search results, according to search engine land indicating AI traffic overlays impact click-through rates between 15-34% of the time when they appear. If you have experienced a dip in website traffic in 2025, there is a fair chance that might be attributed to to AI overlays that now occupy the prime real estate at the top of search results. Estimates from leading digital marketers are gauging that at the low end eight percent of website traffic for local home service businesses has been disrupted by AI overlays, with some estimates pushing the figure up to forty percent.

The Present Impact of AI on SEO for Home Services

When you think about how AI impacts local search there are typically two paths homeowners take when they are looking for contractors.  

• Bottom of the sales funnel and intent based searches such as “best roofer near me”, “local HVAC company” or “AC repair company”, where the expectation of connecting with a real business is very evident. These search queries are now more commonly being populated with AI search overlays that are scraping results and providing recommendations
• Top of the funnel searches that may include “how to” or “what companies offer the best warranties when installing a new roof” are filled with recommendations that include AI overlays. These search queries often represent results that were analyzed over a several month period of time.
  
  As a contractor this shift in how platforms are engaging with users is an unavoidable reality in today’s digital landscape. AI is reshaping user experience by refining how search engines interpret user intentions, whether they're informational, transactional, or navigational. 

How Potential Customers are Using AI Across Different Platforms

AI’s impact isn’t confined to Google alone. It stretches across various platforms like Facebook, X (formerly Twitter), Bing, and tools like ChatGPT. Each platform utilizes AI differently, which means businesses need to tailor their digital marketing strategies accordingly to effectively reach their audience wherever they are online.

Evolving Content Strategy

With AI advancing rapidly, home service businesses might need to rethink their content strategies. Integrating AI tools into SEO practices is just the beginning; maintaining a consistent brand identity across all digital platforms is also crucial. Properly utilized, AI can significantly enhance branding efforts by ensuring that a business's name consistently appears in search summaries, increasing visibility and brand recognition.

Expect More Changes as Platforms Further Integrate AI 

As AI technology continues to evolve, it promises to bring even more sophisticated tools for predictive analytics, voice search optimization, and advanced customer analytics. Staying current with these tools and understanding how to apply them effectively will be key to using AI to drive business growth.

AI is transforming the approach to SEO and online marketing, but the essence of a successful strategy still relies on a blend of technology and human creativity. Home service business owners should see AI as a powerful assistant that complements their marketing efforts and helps introduce their brand to potential new customers. While overall search interactions may be down, there are new opportunities for companies that are adapting and shifting their content and marketing efforts quickly.

For over fifteen years HLM has been helping home service companies fill their dispatch boards. If you are searching for a marketing agency to help you attract more customers and generate leads consistently, contact HLM to speak with a marketing expert today.