Google AI Overviews Changes: The Direct Impact on Malaysia Local Search You Need to Know
Imagine your restaurant that has been operating for ten years suddenly losing half of its new customers who used to come through Google Search — without any warning. This is the reality that many small and medium enterprise (SME) owners in Malaysia are beginning to experience since Google started rolling out AI Overviews widely in 2024. This change is not just another routine algorithm update — it fundamentally alters how users interact with local search results. If you have not yet adjusted your Google Business Profile (GBP) strategy, the time to act is now, before your competitors catch on.
What Are AI Overviews and Why Do They Matter for Local Businesses?
AI Overviews is a new Google feature that uses generative artificial intelligence to produce summarised answers directly at the top of the search results page. Unlike the older Featured Snippets, AI Overviews are far more comprehensive — they pull together information from multiple sources and present it in a conversational format that is easy to understand.
For local businesses in Malaysia, the implications are significant. Users can now get answers to queries like "best car repair shop in Petaling Jaya" or "dentist open on Sunday in Johor Bahru" directly from AI — without needing to click on any link. This means traditional organic traffic is beginning to shift, and only businesses with complete, high-quality GBP profiles will remain relevant in this new search ecosystem.
According to BrightLocal, 87% of consumers used Google to evaluate local businesses in 2023. This figure is expected to remain high, but the way they interact with search results has now changed drastically due to AI Overviews.
How AI Overviews Is Changing the Local Pack Landscape in Malaysia
Before AI Overviews, the user journey was straightforward: type a keyword → see the Local Pack → click on a GBP profile → contact the business. Now, AI Overviews appears above the Local Pack, providing a direct summary that may already be sufficient to answer the user's question.
This creates two distinct scenarios for Malaysian SMEs:
Scenario 1 — Businesses Left Behind: If your GBP profile is incomplete, inactive, or has poor reviews, Google's AI will not consider your information as a trustworthy source. Your business will not be mentioned in AI Overviews, and you will increasingly sink below the user's line of sight.
Scenario 2 — Businesses That Stand Out: If your GBP profile is complete, has consistently positive reviews, updated content, and accurate categories — Google's AI is more likely to reference your business as a recommendation within its AI answers. This translates to free mentions that are on par with premium advertising.
Moz reports that GBP signals account for 36% of Local Pack ranking factors. In the era of AI Overviews, the importance of these signals is expected to grow further, as AI requires rich and reliable data to generate accurate answers.
The GBP Reality in Malaysia: Recent Audit Data That Should Concern You
Internal GBPAuditLab data from 57 audits carried out over the past 90 days reveals a worrying picture of how ready Malaysian SMEs are to face the AI Overviews era.
Here are the key findings:
- Average audit score: 70.9/100 — This means that on average, GBP profiles of Malaysian businesses are still far from optimal.
- 24.56% of profiles are unclaimed — Nearly one in four businesses has yet to claim their own GBP profile. This means they have no control over the information being displayed to potential customers.
- 77.19% have no website link — More than three-quarters of businesses have no website link on their GBP profile, making it harder for Google's AI to verify the credibility and content of those businesses.
- 5.26% of businesses have fewer than 5 photos — Photos are among the most important trust signals in the Local Pack.
- 3.51% of businesses have no operating hours — Even basic information like opening hours has not been filled in.
These figures are not merely statistics. In the context of AI Overviews, each of these gaps is a weak point that causes your profile to be overlooked by Google's AI algorithm. As Google itself states, complete and accurate GBP information directly improves your ranking in local search.
5 Immediate Steps to Adapt Your GBP Strategy
The good news — the advantage in the AI Overviews era is still within reach for anyone who acts quickly. Here are concrete steps you can take today:
1. Claim and Verify Your GBP Profile Right Away
If you are among the 24.56% who have yet to claim your GBP profile, this is the first step that can no longer be delayed. An unclaimed profile is an uncontrolled profile — anyone can suggest changes, and inaccurate information can damage your reputation without you even knowing.
2. Complete Every Section of Your Profile — No Exceptions
Google's AI prioritises profiles with complete information. Make sure your business name, address, phone number, operating hours, business category, attributes, description, and website link are all filled in accurately and consistently. Remember — 77.19% of Malaysian businesses still have no website link on their GBP profile. This is an easy opportunity for you to differentiate yourself.
3. Build a Systematic Review Strategy
AI Overviews relies heavily on trust signals such as user reviews. With an average Google rating of 4.3/5 among the businesses audited, this level is a good starting point — but the volume of reviews matters too. Encourage satisfied customers to leave reviews, and more importantly, respond to every review professionally — whether positive or negative.
4. Upload High-Quality Photos on a Regular Basis
Photos are the first thing both users and AI notice. Ensure your profile has at least 10 high-quality photos — including shots of your shop exterior, interior, products or services, and your team. The frequency of photo updates also signals to Google that your business is active and relevant.
5. Make Consistent Use of Google Posts
Google Posts is a feature that is often overlooked but highly effective in the AI Overviews era. Regularly updated content — promotions, announcements, articles, or events — signals to Google's AI that your business is dynamic and relevant to current searches.
The Hidden Opportunity: Who Can Still Win in AI Overviews
While AI Overviews may seem daunting, it actually opens up a significant opportunity for Malaysian SMEs who are prepared to act ahead of their competitors. Most businesses have yet to realise this shift — and that is a valuable competitive edge.
Imagine you run a laundry shop in Shah Alam. If your GBP profile is complete with operating hours, pricing, a solid volume of customer reviews, and clear photos — while your competitors still have half-empty profiles — Google's AI will naturally reference your business as the answer to searches like "laundry shop near Shah Alam open at night".
This is organic visibility that requires no advertising spend whatsoever. The question is: is your GBP profile already strong enough to win in AI Overviews?
The Future of Local Search in Malaysia: Adapt or Be Left Behind
The transformation brought about by AI Overviews is not a temporary phenomenon. Google has made it abundantly clear that AI is at the core of their product strategy for the coming decade. For Malaysian SMEs, this means a straightforward choice: adapt now or face a slow but certain decline in visibility.
Businesses that will thrive in this new search ecosystem are those that consistently do three things:
- Maintain accurate and complete GBP information — because AI needs reliable data in order to mention your business.
- Build a strong digital reputation through reviews — because AI values social proof more than any technical optimisation.
- Produce content that is relevant and up to date — because AI favours businesses that are actively communicating with their customers online.
The time for a wait-and-see approach is over. Every day that passes without action is a day your competitors may be one step further ahead.
Audit Your GBP Profile for Free Right Now
You do not need to guess whether your GBP profile is ready for the AI Overviews era — you can find out precisely within a matter of minutes. GBPAuditLab offers a comprehensive, free Google Business Profile audit designed specifically for Malaysian SMEs. Get a detailed report on your profile's strengths and weaknesses, along with clear action recommendations to boost your visibility in local search — including AI Overviews.
👉 Run your free audit at gbpauditlab.com today — before your competitors get there first.