AI Search Usage Soars 392% in 13 Months—Is Traditional Search in Trouble?

AI Search Usage Surged 392% in 13 Months — Local Businesses That Don't Adapt Will Disappear

What happened: AI search traffic grew 392% year-over-year across 1.5 million sessions tracked by digital agency IDHL, with transactions from AI search up 553%. The data shows AI search is no longer experimental — it's becoming the primary way consumers discover and buy from brands.

Why it matters for NYC operators: If your business isn't optimized for AI search, you're becoming invisible to customers who now use ChatGPT, Gemini, and Claude as their starting point — not Google.

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The Numbers

• 392% YoY growth in AI search sessions (July 2025–July 2026)
• 312% revenue increase from AI search traffic
• 553% transaction growth — 21,141 total transactions via AI search
• 14x faster growth than organic search (which only grew 28%)
• 91% of AI search traffic comes from ChatGPT

What This Means for Local Businesses

The report reveals a critical shift: AI search is following seasonal demand patterns just like traditional search. For NYC businesses, this means:

• Gifts and travel peak in December
• Most retail categories peak in May and June
• Trade/DIY peaks in July (653% growth)
• Home & Garden peaks in July (588% growth)
• Entertainment peaks in May (419% growth)
• Beauty peaks in June (418% growth)

The Real Threat: Platform Diversification

ChatGPT still dominates at 91%, but Google Gemini, Anthropic Claude, Microsoft Copilot, and OpenAI Search are gaining fast. Your customers aren't just on one platform anymore — and each AI engine surfaces different results based on different signals.

Why Reddit Matters (But Isn't Everything)

One stat that should wake up every business owner: users chose Reddit results 23 billion times in Google searches last year. Why? Because AI engines trust real opinions from real people.

Chris Shelbourn, organic search director at IDHL, explains: "AI engines tend to trust the kind of content Reddit is full of, which is real people sharing real experiences."

But he adds an important caveat: while participating in relevant Reddit conversations has become a viable tactic through generative engine optimization, "it is perhaps not the 'silver bullet' some commentary suggests." Large language models "regularly cite dozens of other third-party sources, which can vary substantially by industry or topic, not just Reddit."

The Real Strategy: Be Everywhere Credible

AI engines pull from review sites, industry directories, news coverage, academic sources, and community platforms — depending on your industry. A restaurant might get cited from Yelp and local food blogs. A contractor might surface through HomeAdvisor and trade associations. A B2B service might appear via LinkedIn and industry publications.

The Bottom Line

AI visibility doesn't start when someone asks ChatGPT a question. It starts months earlier with the content, reviews, and recommendations that shape how your brand is understood online.

For NYC local businesses, the message is stark: optimize for AI search now or watch your competitors take the customers you can't reach.

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Source: MediaPost — Laurie Sullivan, September 30, 2026
Report: State of AI Search 2026 by IDHL