Jonathan Davis' reaction was immediate when he learned that starting Oct. 1, Google would bill contractors for the full cost of any Local Services Ad (LSA) lead where a caller spends 20 or more seconds on hold during business hours — even if they hang up before anyone answers.
"My first reaction was, ‘That's crazy,’" Davis said. "But this really just brings us back to the virtual agent — it helps level the playing field."
Davis, the retail operations manager at Davis Air Conditioning & Heating in the Houston area, had already deployed ServiceTitan's AI Virtual Agent earlier this year, a tool he named Nell after his grandmother Lanelle. Nell books at a 90% rate.
But the new Google LSA rule isn't happening in isolation. For operators paying close attention, it's the latest signal in a much larger shift.
The First to Answer Wins
Adam Terranova oversees marketing for One Hour Heating & Air Conditioning, Benjamin Franklin Plumbing and Mister Sparky Electric — all under Authority Brands' trades division and all running on ServiceTitan. He's watching Google reshape how contractors compete for leads in real time.
"Search is just the beginning of the journey," Terranova said. "After you win the search, the consumer journey begins with the first interaction, whether booking online, the first phone call or a text message. This is where a feature like Speed to Lead is very beneficial for the service provider."
Speed to Lead is a new ServiceTitan capability that automatically engages incoming leads with an AI-powered SMS conversation and books jobs in real time, so you never lose a lead to slow follow-up.
Today's consumer moves fast and shops in seconds.
"The first one to book the appointment and the first appointment that they can get is going to be the one that wins," Terranova said.
His advice to contractors who haven't made the shift is direct.
"Adapt," Terranova said. "Google is not going to go back to the way it was. It's just not."
Already Prepared
According to ServiceTitan, in the 30 days prior to September 4, 2026, 65.9% of abandoned calls from LSA campaigns lasted at least 20 seconds without being answered — meaning the majority of missed calls already fall inside Google's new billable window.
Since activating Nell, Davis Air Conditioning & Heating has fielded 247 calls through the virtual agent, booking 84 jobs. Text follow-up converted at a 41% rate, producing 35 more booked jobs. The Google policy doesn't punish size. It punishes unpreparedness.
That’s why for Davis, the initial shock of it gave way quickly.
"We have virtual agents," Davis said. “Realistically, this should not be an issue."
