How does ChatGPT decide which local businesses to recommend?

Nobody outside OpenAI knows exactly. OpenAI says ChatGPT ranks search results "using multiple factors intended to help users find relevant, reliable information," but it doesn't list those factors, and it says plainly that placement is not guaranteed [1]. What is public is where ChatGPT looks for information. That part gives you something to work with.

Where does ChatGPT get its information about local businesses?

When someone asks for something that needs current information, like a chiropractor nearby or a shop that can fix their brakes this week, ChatGPT can search the web instead of answering only from what it learned during training. OpenAI explains that ChatGPT can use location information to find local results, and that it sometimes partners with other search providers. It rewrites the question into one or more search queries and sends them to those providers [1]. In OpenAI's own example, someone in San Francisco asks for good restaurants near them, and ChatGPT turns that into the search "top restaurants San Francisco" [1].

OpenAI also says it may share the person's location with third-party providers that supply local information, such as nearby business listings [1]. It doesn't name those providers.

So a recommendation usually starts with a search. What ChatGPT ends up saying about local businesses depends on what that search turns up: websites, listings and whatever else the web says about them.

What nobody knows yet

Some things that matter a lot here are not public:

• Which factors decide who gets mentioned, or how much each one weighs. OpenAI only describes them in general terms [1].
• Which listing providers ChatGPT relies on for local information [1].
• Whether there is any stable order at all. There is no fixed ranking to climb. Results depend partly on where the person asking is, and OpenAI notes that saved location information can also influence them [1].

OpenAI also warns that search results and citations "can be incomplete, outdated, or incorrect" [1]. If an old listing still shows your previous hours, an assistant may repeat them.

Anyone who promises you a guaranteed spot in ChatGPT's answers is promising something OpenAI itself doesn't.

What can you do about it?

None of these steps guarantees a recommendation. Their job is to make sure that when an assistant goes looking, it finds your business, and finds the right information about it.

Make sure your website isn't blocking the search crawler

OpenAI uses a crawler called OAI-SearchBot for search. Sites that block it won't be shown in ChatGPT search answers, though they can still appear as navigational links [2]. Whoever manages your website can check the robots.txt file in a few minutes. The settings are independent: you can allow search while telling OpenAI not to use your content for training [2]. Changes can take about 24 hours to take effect [2].

Say plainly what you do and where

Write your services, the cities or neighborhoods you serve, your hours and how to reach you as text on your website, not only inside images. Google, which publishes more about this than OpenAI does, says there are no special requirements to appear in its AI features: a page needs to be indexed and eligible to appear in regular Google Search [3]. It's reasonable to expect the same basics to matter for any assistant that starts from a search, though OpenAI hasn't said so.

Keep your Google Business Profile complete and current

Google says businesses with complete and accurate information are more likely to show up in local results. Those results are based mainly on relevance, distance and prominence, meaning how well-known a business is, which takes into account reviews and links from other websites [4]. Google's guidance for its AI features also recommends checking that your Business Profile information is up to date [3].

Keep your details the same everywhere

Microsoft says accurate business information is especially important when its AI tools answer questions about places nearby. It recommends keeping your address, hours and contact information current in Bing Places [5]. The same name, address, phone number and hours on your website, Google, Bing and the directories in your field mean that whichever source an assistant reads, it finds the same story.

Ask for reviews, and answer them

According to Google, more reviews and positive ratings can help your local ranking, and replying to reviews shows customers you value their feedback [4].

Why pay attention to this now?

People are already asking. In BrightLocal's 2026 survey of US consumers, 45% said they use AI to find local business recommendations, up from 6% the year before, and ChatGPT was the tool they used most [6].

The part you control hasn't changed much: clear, accurate and consistent information in the places people and assistants look. At Loden Growth, that's what we mean by AI visibility, and it's why we don't promise rankings.