The new Google is destroying small businesses' reputations

Aug 11, 2026 03:22 PM - 1 month ago 104
Business Insider

A personification successful a suit rests their caput connected a laptop, pinch a Google AI Overview page down them.

Getty Images; Alyssa Powell/BI
They worked tirelessly to build their company's reputation. Then came Google's caller AI summary.

A personification successful a suit rests their caput connected a laptop, pinch a Google AI Overview page down them.

Getty Images; Alyssa Powell/BI

Damian Mansell was stunned to spot what Google was saying astir his nascent business. When he searched for reviews of The Plastics Shed — the online building-plastics supplier he incorporated astatine the commencement of 2025 — the platform's AI overview said customer feedback was "overwhelmingly negative." It listed complaints astir delayed deliveries, lying staff, and damaged products. While the institution had immoderate affirmative feedback, the summary said, its mediocre customer work was a "significant recurring issue." The bully news: The reviews weren't really astir Mansell's company. They appeared to beryllium for competitors and companies that sold existent integrative sheds. The bad news: He had nary thought what to do astir it.

Mansell, who lives successful the UK, says. "I tin spot really that happens, but why should it hap pinch Google?" Mansell, who lives successful the UK. "I mean, obviously, the forefront of AI technology."

To make matters worse, Mansell was paying Google astir £700 a period to advertise, while the summaries warned group away. Following proposal he recovered connected online forums, he many times submitted feedback to Google that the absurd was wrong. After a mates of weeks, it started to improve. AI has been an invaluable instrumentality for him to build retired his business, truthful he doesn't want to malign the tech successful general, but he wishes location were much accountability erstwhile things spell awry.

"AI gives the communal man the knowledge, but it tin besides ruin the communal man," he says.

Google's AI Overviews are quickly becoming consumers' first belief of businesses. Instead of scanning reviews and websites, galore users spot a azygous synopsis that purports to blend accusation from crossed the net into a broad digest. When those summaries are inaccurate, misleading, aliases jumbled, business owners opportunity they tin origin superior reputational harm and financial losses, and there's often small recourse.

Mansell still wonders really overmuch business the rumor costs him. He's tried to get Google to refund immoderate of his advertisement dollars, but he hasn't had immoderate luck, contempt his champion efforts.

"I'm for illustration a canine pinch a bone," he says. "But I met my lucifer pinch Google."


Internet hunt has changed drastically successful the past fewer years: Instead of a database of links, Google often provides a azygous consequence that's expected to summarize the constellation of online information. These overviews look right and sound confident, but they tie connected a litany of sources pinch varying levels of reliability. They tin moreover spit retired accusation that is flat-out wrong. (Like recommending group make glue pizza.) Misinformation connected the net isn't new, but the clean, concise, AI-concocted package is.

"With the accepted hunt engine, the personification sees aggregate things. So if 1 of them has thing wrong, chances are thing other would counterbalance it," says Chirag Shah, a professor astatine the University of Washington's Information School. That's now gone, and pinch AI overviews, you're getting "The Answer," which whitethorn aliases whitethorn not beryllium correct.

I look astatine the AI overview, I wouldn't telephone me.

For business owners, the consequences tin beryllium much than a mild annoyance aliases impermanent confusion. These AI summaries are becoming their integer storefronts. Across the internet, you tin find entrepreneurs and managers grumbling that AI summaries operation them up with different companies, aboveground complaints that are directed astatine personification else, aliases dole retired mendacious facts.

Earlier this year, Betty Whitney started noticing that Google's overviews were conflating her institution — NW Select Property Management successful Idaho — pinch likewise named businesses. The apical sheet seemed to beryllium merging her patient pinch 1 successful the region that closed years agone and mixing her reviews up pinch spot managers successful different states.

"If I'm a customer, and I'm looking for a spot guidance company, and I look astatine the AI overview, I wouldn't telephone me," she says.

Whitney has spent months trying to amend the situation. Like Mansell, she's utilized Google's feedback system to springiness overviews a "thumbs down" erstwhile they're wrong, and she's made immoderate adjustments to her website to effort to provender the AI crawlers much meticulous data. After bringing her problem to a Google support forum, she sewage successful touch pinch a third-party SEO master who was capable to thief her retired — benignant of. The overview has gotten better, but it still periodically reverts to the mistake-filled version.

Three years aft relocating, Philippa Main, a real property supplier successful Northern Virginia, still can't wholly person Google that she's nary longer successful Florida. When she searches her name, astir of the accusation that comes up astir her is correct, but past there's a statement that confidently states that she's been "servicing the Tampa Bay area since 2014," moreover though it sits correct supra her Virginia address. Main's tried everything she could deliberation of to get it adjusted, combing the net to effort to find wherever the AI is drafting from, emailing Google, and asking friends to study the issue.

"There's truthful overmuch title successful my manufacture that if immoderate azygous point seems off, someone's conscionable going to telephone the adjacent personification connected the list," she says. It's particularly frustrating for mini businesses, because "we're conscionable trying to do everything that we tin to compete pinch these monolithic companies who really do person nonstop lines to Google aliases their representatives," she says. "Google conscionable doesn't look to care."

In a statement, a Google spokesperson told maine that its search-related AI experiences are "rooted successful our value ranking systems and are designed to coming a scope of perspectives" from each complete the internet. "AI Overviews are responsive to people's circumstantial queries; for example, if personification specifically searches for complaints astir a business, the generated consequence will apt show applicable accusation from sources crossed the web," they said.


It's nary concealed that AI is not ever a bastion of truth — almost everyone who's utilized the exertion has knowledgeable a consequence from it that's highly off-base astatine immoderate point. As the New York Times wrote successful April, Google processes complete 5 trillion searches a year, and moreover if its overviews are correct 9 times retired of 10, that still intends half a trillion wrongs. Google acknowledges that while the overwhelming mostly of its overviews are accurate, location tin beryllium cases wherever they miss discourse aliases misinterpret content. A Google spokesperson said the study the Times cited has "serious holes."

Google's summaries synthesize accusation from galore places — a large root is, obviously, the institution website, but it besides gobbles up Reddit posts, 10-year-old blogs, and Yelp reviews. The level provides links that are expected to backmost up its claims, but those links don't ever support the output. AI has besides been known to hallucinate, meaning it invents plausible-sounding things from bladed air.

"There's truthful overmuch room for error," says Lily Ray, an SEO and AI hunt advisor and the laminitis of Algorythmic, a consultancy.

The overviews are delivered pinch specified assurance that group don't recognize they're looking astatine an extracted aliases generated reply that whitethorn beryllium incomplete aliases incorrect. Instead of clicking connected 5 links to comparison accusation aliases conscionable spending a fewer minutes confirming, they skim the automated summary and telephone it a day. The AI says this roofing company's reviews are terrible? Onto the adjacent one! Rarely do group excavation successful to cheque if it's pulling complaints for a business successful different state.

There's truthful overmuch room for error.

Search manufacture professionals opportunity this is simply a new frontier for businesses. They nary longer person to attraction truthful heavy connected hunt rankings but must alternatively negociate the AI's mentation of their reputations. It's not astir chasing clicks —it's astir making judge AI knows you beryllium and is bully and correct astir you. Ray says it's the "biggest alteration to search" she's seen successful her 16-year career.

This brave caller world presents each sorts of nuances and complications. Google likes to mention Reddit a lot, which "can spell awry very fast," Ray says. Reddit has a batch of bully information, but it tin besides beryllium a small wild. The aforesaid goes for YouTube comments, which the AI besides seems to like. Some brands suffer from an accusation void: there's not a batch of contented retired location astir them, truthful AI tries to capable successful the gaps aliases comes up pinch bad answers. Or, they've sewage a sanction problem wherever they're excessively adjacent to different entity, and the exemplary can't show who's who. There whitethorn beryllium bad actors who intentionally time off mendacious aliases antagonistic accusation astir businesses online for AI summaries to prime up. Even elemental facts, specified arsenic shop hours aliases telephone numbers, require a concerted effort crossed the full net to support straight. "There's truthful overmuch attraction activity that has to spell into keeping a brand's contented and accusation meticulous and up to date," Ray says.

Michael King, the laminitis and CEO of iPullRank, a integer trading agency, tells maine he focuses connected citation accuracy and connected gaining immoderate power complete AI outputs. "The measurement these systems activity is they're fundamentally doing a bunch of searches successful the background, and past they're feeding contented to the ample connection model," King says. Businesses request to create much "surface area" — meaning publishing much contented and targeting much keywords — to thief AI find the correct answer. He encourages clients to position themselves arsenic the experts connected their ain brands.

"You've sewage to deliberation of it arsenic much for illustration a estimation guidance run than your classical SEO campaign," King says. "It's conscionable acold much multidimensional."

Ben Fisher does this for a surviving and still runs into problems. He noticed that Google's AI summary was informing that his institution — Steady Demand, a SEO and societal media consultancy for mini businesses — was a scam. After doing immoderate digging, he realized it was referring to an aged Reddit thread astir a likewise named app and had to return immoderate clip retired to "train" Google to cognize the difference.

"The large problem is there's cipher to contact. The different large problem is you hunt once, and you're done," Fisher says. Large connection models don't nutrient the aforesaid results each time, moreover for the aforesaid questions, truthful group don't recognize 1 consequence mightiness not lucifer the adjacent month, week, aliases minute. "It's still a business wherever you should beryllium monitoring things connected a regular basis," he says. "Otherwise, you're conscionable not going to cognize why you're not getting calls."


This is simply a difficult rumor to tackle from a technological, entrepreneurial, and regulatory constituent of view. LLMs are improving, but they're ne'er going to beryllium perfect. Business owners tin do their champion to support an oculus connected really they're showing up successful hunt results, but they've besides sewage 9,000 different things to do.

Reasonable minds — and different countries and ineligible systems — tin disagree astir really responsible Google should beryllium erstwhile the robot screws up. In Canada, a musician has revenge a $1.5 cardinal suit against Google claiming that its AI summary falsely identified him arsenic a activity offender. A tribunal successful Germany precocious made a preliminary ruling that Google is liable for mendacious statements made successful its AI overviews. A Google spokesperson said that the German lawsuit focuses connected "specific and constrictive errors," not the measurement overviews show content, and that the institution disagrees pinch the ruling and plans to appeal. Shah says that successful the US, we person "very small user protection" for these types of issues.

"I don't deliberation lawmakers moreover afloat understand the exertion capable and the implications to beryllium capable to do anything," he says.

In the meantime, business owners are near white-knuckling it, hoping that the mysterious exertion astatine the bosom of those AI summaries looks kindly upon them. That's the lawsuit pinch Mansell, who's proud to opportunity that Google's overview of the Plastics Shed is now "fantastic", conscionable for illustration galore of his existent reviews.

"It does interest maine pinch respect to what tin beryllium said astir you without immoderate recourse," he says.

Despite his frustrations pinch the summary and grounded attempts to get a refund, Mansell still pays to advertise pinch Google — otherwise, group don't click done to his website. "I conscionable gave up," he says. "It was conscionable an absolute pointless exercise."


Emily Stewart is simply a elder analogous astatine Business Insider, penning astir business and the economy.

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Emily Stewart is simply a elder analogous connected Business Insider’s Discourse team. She focuses connected consumerism, culture, and the economy, among different topics. Some of her biggest stories person explored Red Lobster’s demise, middle-class shoplifting, convenience stores’ struggles, the emergence of illicit narcotics arsenic activity performance-enhancers, and generational finance trends, including Gen Z’s emotion for AmEx and the impending avalanche of babe boomers’ stuff. She besides writes regularly astir sports betting, the alcohol industry, work, millennials, and economic trends. Emily appears regularly connected nationally syndicated power shows and podcasts, including Marketplace, The Weekend Dive, and Today, Explained. She has impermanent hosted C-SPAN’s “After Words” and moderated aggregate panels connected economical argumentation and workplace dynamics.Before joining Business Insider, Emily was astatine Vox, wherever she covered business and the system and wrote a newsletter, “The Big Squeeze,” astir really group acquisition the forces of the system and capitalism time to day. Prior to that, she worked astatine TheStreet.

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