How does an AI assistant decide which businesses to recommend?

5 minute read

At a glance

  • An AI assistant usually searches the web for your question rather than answering from memory, so a business does not have to be in a model's training data to be recommended.
  • One question becomes several searches, and the conversation around it shapes them. The customer may never type the phrase your page was built on.
  • The answer is assembled from your website, business listings, reviews and other sources, so what others say about you counts as much as what you say.
  • You can be found only if the search crawler can reach your site. Advertising cannot buy a place in the answer, and nobody can guarantee one.

Someone asks an AI assistant for an affordable rug cleaner nearby. A few seconds later it names a small local company the person had never heard of. Why that company? Did the business optimize its website for AI? Did it rank first somewhere? Did the assistant copy the top Google result? Usually none of those explains it. AI assistants build recommendations differently from a search results page, and the difference is worth understanding because these recommendations are becoming one of the ways customers find businesses.

This article uses ChatGPT for most of its examples because OpenAI documents how its search works in more detail than most. Google describes the same approach for its own AI features, and Copilot, Claude and Perplexity work along similar lines.

The assistant does not necessarily answer from memory

An AI assistant can know something two ways. It can have learned it during training, as part of the model's general knowledge, or it can look it up on the web when you ask. For local businesses, prices, products and anything else that changes, live search matters most. OpenAI says ChatGPT searches the web automatically when a question would benefit from current information and uses what it finds as sources. A small company does not have to be embedded in a model's training data to be recommended. The assistant may have found it during the search it ran for that one question.

One question becomes several searches

This is the biggest difference from keyword search. OpenAI says ChatGPT rewrites a question into one or more targeted searches and may search again after reading the first results. Google describes the same technique for its AI features and calls it query fan-out.

Take "who's a good, affordable rug cleaner near me that can handle a wool area rug?" That one sentence contains a business type, a location, a price concern, a specialty and an implied interest in quality. The assistant can search for each part: local rug cleaners first, then wool rug cleaning, reviews or pricing. OpenAI's own example is a request for restaurants nearby, which ChatGPT turns into a specific local search using the person's general location, then refines as it goes.

This is why "ranking for a keyword" has become an incomplete way to think about visibility. The customer may never type the phrase you built a page around.

The exact question matters

"Who's the best rug cleaner near me?" "Who's the cheapest?" "Who cleans antique Persian rugs?" "I have a wool rug with pet urine damage. Who near me handles that?" All four ask for the same category of business, and none asks the same question. A business that is the obvious answer to one may not appear for another. OpenAI says ChatGPT ranks results on multiple factors meant to surface relevant and reliable information, that the details are not public, and that placement is not guaranteed. An SEO company that claims to know why Business A was chosen over Business B is claiming to know something the company that runs the system does not publish.

The conversation is part of the question

OpenAI says earlier parts of the conversation can shape how a search is written, and so can saved preferences when Memory is on. Suppose someone has already said they do not want to spend a fortune, but the rug is handmade and they do not want a rental-style steam cleaner used on it. Then they ask: "Can you find somebody near me?" On its own the question means little. In context it carries a lot. AI search is conversational in a way keyword search never was. A business can be found because one page answers a very specific need, even though the customer never searched for the words on that page.

Where the information about a business comes from

There is no master database of everything an assistant knows about every business. A recommendation can draw on your website, on search providers, on business listings, on review sites and on other public sources, and the mix varies by question. OpenAI says ChatGPT search sometimes works with third-party search providers and runs multiple queries while producing an answer. For shopping questions, OpenAI's shopping results also consider structured product data from merchants and third parties, prices and reviews. The exact factors for a plumber or a rug cleaner are not published, but the broader point holds: the answer is assembled from several sources, not read off one website.

Your website matters, but it is not enough on its own

Compare two rug-cleaning websites. One says: "Professional wool, oriental and natural-fiber rug cleaning. Pickup and delivery throughout the Wood River Valley." The other says "Quality service you can trust," followed by a phone number and stock photographs. The second business may do excellent work, but its website has told a search system almost nothing about what it does. A system cannot match you to a customer's need if the information that makes the match is missing, vague or hard to retrieve. Clear content has always mattered for SEO. AI retrieval makes the reason easy to see.

What others say about you matters too

Your website saying you are "the area's leading wool rug specialist" is a claim you make about yourself. Reviews that keep mentioning wool rugs, a local interior designer who recommends you for delicate pieces, business listings that describe the service accurately and a mention in a local publication are independent evidence of the same thing. Off-site signals such as listings, reviews, citations and reputable links have been part of SEO for years. AI search gives them another use: helping a system gather enough information to answer a specific question with confidence.

The crawler has to be able to reach you

None of this works if the system cannot read your site. OpenAI runs a crawler called OAI-SearchBot for ChatGPT search and says sites that block it will not be shown as sources in search answers, though a URL can still appear as a navigational link. Anthropic, Google and Microsoft each have their own crawlers. Letting legitimate search crawlers in is a genuine AI-specific technical step. It is also very different from rewriting your website to a supposed AI formula. The next article covers the "block AI bots" setting and why not every AI crawler does the same job.

No. OpenAI now shows ads in some versions of ChatGPT, and it states that ads are separate from answers and that advertisers cannot pay to shape or alter what ChatGPT recommends. Expect the same distinction everywhere as advertising arrives in AI interfaces. A sponsored placement is advertising. A mention inside an AI-generated answer is something else, just as paid search ads and organic results have always been two different things.

Can you make an AI assistant recommend your business?

You can improve your chances of being found. You cannot guarantee a recommendation, and those are different promises. You can keep your site open to legitimate crawlers, describe your services and service area plainly, answer the questions customers actually ask, keep your business information accurate and earn real reviews and references. You cannot control the customer's question, which sources the assistant pulls, how competitors compare on that request or how the answer gets assembled. OpenAI says placement is not guaranteed. Anyone selling guaranteed placement should explain how they will guarantee something the operator of the system says it cannot.

A better question

Instead of "how do I rank in ChatGPT?", ask: "Have we published enough accurate, useful information for a search system to recognize when our business is the right answer?" That question points back to fundamentals: clear information, useful content, a crawlable site, accurate business data, evidence of expertise and an independent reputation. AI search changes how that information is found and combined. It does not remove the need for it.

Next in the series: should you block AI bots from your website? The answer depends on what each bot is there to do.

In this series

  1. SEO and AI: what's real and what's hype
  2. How does an AI assistant decide which businesses to recommend? (this article)
  3. Should you block AI bots from your website?
  4. How to make your website visible in AI search without chasing AI SEO tricks

Notice: The information provided in this document is for informational purposes only and does not constitute legal, financial, or professional advice. All materials and guidance offered by Generose Corporation dba Risingline are subject to its Client Services Agreement and Website Terms of Use and are provided without warranty as to accuracy, completeness, or applicability to any specific situation. While Risingline takes reasonable precautions to ensure the reliability of the information presented, compliance with regulatory requirements varies based on specific circumstances, jurisdiction, and evolving standards. Recipients are encouraged to conduct independent due diligence and consult with qualified professionals before implementing any recommendations. Generose Corporation dba Risingline expressly disclaims any liability for actions taken or not taken based on this document. Receipt of this information does not establish a client, advisory, or fiduciary relationship between Risingline and the recipient.

All articles