Analysis6 min read

How ChatGPT Decides Which Business to Recommend

Ever wonder how ChatGPT picks one business over another? Here's what we've learned from analyzing thousands of AI recommendations across industries.

Pulse Team

When someone asks ChatGPT "who's the best roofer in Denver?" it doesn't flip a coin. There's a systematic process behind which business gets named — and understanding that process is the first step to influencing it.

We've analyzed thousands of AI recommendations across dozens of industries. Here's what we've found.

It Starts With the Training Data

ChatGPT's knowledge comes from a massive dataset of web content. When it recommends a business, it's drawing on everything it's seen about that business across the internet: your website, directory listings, review sites, news articles, forum discussions, and more.

The key word here is consistency. If your business name is slightly different on Yelp than on Google Business Profile, or your phone number is outdated on one directory, ChatGPT has conflicting information — and conflicting information reduces confidence.

The Five Factors We See Most Often

1. Mention Frequency

Businesses that appear across more authoritative sources get recommended more often. This isn't about gaming the system — it's about having a genuine, consistent presence across the directories and platforms that AI trusts.

2. Content Specificity

Vague content loses to specific content. A business whose website says "we offer plumbing services" will lose to one that says "we specialize in tankless water heater installation for homes built before 1990 in the Denver metro area."

AI assistants are answering specific questions, so they prefer businesses with specific answers.

3. Review Quality and Recency

ChatGPT doesn't just look at your star rating — it processes the content of reviews. Detailed reviews that mention specific services, outcomes, and experiences carry more weight than generic "great service!" ratings.

Recency matters too. A business with 50 reviews from 2023 and nothing since looks stale compared to one with steady, recent feedback.

4. Structured Authority Signals

Schema markup, FAQ pages, service area definitions, and clear business categorization all help AI parse your offerings with confidence. The easier you make it for AI to understand what you do and where you do it, the more likely it is to recommend you.

5. Citation Source Trust

AI platforms trust some sources more than others. Established directories (Google Business Profile, Yelp, BBB), industry-specific platforms, and authoritative news sources carry more weight than random blog mentions.

What ChatGPT Gets Wrong

AI recommendations aren't perfect. We regularly see:

  • Outdated information — ChatGPT may recommend businesses that have closed, changed services, or moved
  • Geographic confusion — Businesses get recommended for areas they don't serve
  • Missing context — A highly rated restaurant might get recommended for a service it doesn't offer
  • Competitor bias — Businesses with stronger online presence get recommended even when they're not the best fit

This is actually an opportunity. If you can ensure your information is accurate, complete, and current, you'll stand out from competitors who haven't taken the time to manage their AI presence.

How to Check Your Current Standing

The simplest way to see where you stand is to ask. Open ChatGPT and type the same queries your customers would use. Try variations:

  • "Who should I hire for [your service] in [your city]?"
  • "Best [your category] near [your location]"
  • "I need a [your service] — who do you recommend?"

Note who gets mentioned, what claims are made about them, and whether your business appears at all. This manual check gives you a baseline.

For ongoing monitoring across all six major AI platforms — not just ChatGPT — Pulse automates this process and tracks changes over time.

The Bottom Line

ChatGPT's recommendation process rewards businesses with consistent, specific, well-sourced information. The good news is that most of the factors are within your control. The businesses that take AI reputation seriously now will capture a disproportionate share of this growing discovery channel.

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