More than four in ten U.S. consumers now turn to AI assistants for suggestions on local services, up sharply from just six percent a year ago, according to BrightLocal’s 2026 Local Consumer Review Survey. While the convenience of a quick, voice‑activated recommendation is appealing, the underlying star ratings that power these suggestions are increasingly called into question.
Star ratings may not reflect true quality
FTC economist Devesh Raval’s 2024 research, released with the agency, found that the majority of businesses on major review platforms average four stars or higher—even those with documented complaints and poor performance records. Nearly one‑third of the reviews examined consisted solely of a numeric rating without any written commentary to provide context. Moreover, ratings below two stars were exceedingly rare, meaning the difference between a highly reliable plumber and one whose work could cause a flood may be a fraction of a point that tells little about actual service quality.
Federal crackdown on fake reviews
The FTC has taken steps to address the problem. In 2024, the agency finalized a rule prohibiting fake or paid‑for reviews and requiring disclosure when reviewers have a material connection to a business. In December 2025, the FTC began issuing warning letters to companies that violated the rule, with each violation carrying a penalty of $53,000 or more. While it is still early to gauge the rule’s effectiveness, the enforcement effort signals a serious federal commitment to cleaning up online review ecosystems.
AI assistants can amplify misleading ratings
AI tools such as ChatGPT and Google’s AI Overviews pull data from these same star‑based platforms. When the underlying ratings are skewed, the AI‑generated summaries can present an overly positive picture of a business. A recent incident highlighted this risk: a BBC reporter posted a fabricated claim on his personal website, and within a day several AI assistants echoed the false statement as fact. Google responded by tightening its spam policies, but the episode underscores how quickly misinformation can spread through AI‑driven recommendation engines.
Consumers still seek human judgment
Despite the rise of AI, most shoppers remain cautious. The BrightLocal survey shows that only 23% of respondents make purchasing decisions solely based on an AI‑generated review summary. The majority—82%—still consult additional sources such as business websites, social‑media feeds, and other review platforms before committing to a service. Moreover, 49% of respondents say they trust an online review as much as a recommendation from a friend, but personal anecdotes continue to outweigh anonymous star ratings.
Local community input matters
Neighborhood‑level sources play a vital role in shaping consumer confidence. Pew Research Center data from 2024 indicates that 52% of U.S. adults sometimes gather information about local businesses from community‑centric platforms like Facebook groups. Detailed, contextual feedback—such as the cost of a specific service or a description of how an electrician resolved a problem—provides richer insight than a solitary five‑star rating.
What the FTC recommends
The agency advises shoppers to look beyond the star count and consider the substance of reviews, the identity of the reviewer, and whether the reviewer is a local resident. By combining AI convenience with traditional word‑of‑mouth advice, consumers can make more informed choices while the FTC continues its efforts to curb deceptive practices.
As AI assistants become an increasingly common first stop for local recommendations, ongoing scrutiny of the rating systems they rely on will be essential to protect consumers and support trustworthy local businesses.
Original reporting: KTVZ (Central Oregon) — read the source article.
