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How do ChatGPT and LLMs recommend a company?

ChatGPT, Perplexity and LLMs do not recommend a company with the same criteria in every market: local reviews, specialization, proof, visible results, compliance, risk and available sources all change the recommendation.

ChatGPT, Perplexity, Gemini or Claude do not recommend a company with a universal grid.

A hairdresser, accountant, SEO agency, consulting firm, industrial supplier or regulated solution are not evaluated in the same way. Criteria change with risk, buying frequency, location, specialization, available proof and decision type.

This is central to GEO: being visible in AI is not enough. You need to understand the criteria AI uses to justify a recommendation in your specific market.

Short answer

ChatGPT and LLMs recommend a company by reconstructing a decision grid adapted to the market.

Market typeOften dominant criteriaOften useful sourcesGEO risk
Recurring local serviceProximity, rating, reviews, availability, customer sentimentGoogle Business Profile, reviews, local directoriesBeing absent if the local profile is weak
Local intellectual professionSpecialization, target clients, seniority, website clarityWebsite, specialty pages, reviews, professional sourcesBeing compared as a generalist
SEO or GEO agencyVisible results, positioning, public proof, published analysisSERPs, studies, cases, expert contentBeing cited without being judged credible
Complex B2B supplierBuying criteria, proof, thresholds, use cases, risksCriteria pages, studies, customer cases, documentationBeing excluded from the shortlist
Technical or regulated offerStandards, compliance, traceability, verifiable proofDocumentation, certifications, matrices, RFP materialBeing compared on a standard that is too weak

The sentence to remember:

LLMs do not recommend a company only because it is visible. They recommend it when it is easy to justify within the criteria grid of its market.

Users no longer only search for a list of providers. They ask engines and AI systems to reduce uncertainty:

  • “Who is the best accountant for an SMB?”
  • “Which SEO agency should I choose?”
  • “Which criteria should I compare to choose a supplier?”
  • “Which providers do you recommend in my city?”
  • “Which risks should I check before signing?”
  • “Which company is most credible for this need?”

Gartner predicts that traditional search volume will drop by 25% by 2026 because of AI chatbots and virtual agents (Gartner). Pew Research Center also found that users click fewer links when a Google AI summary appears (Pew Research Center).

The issue is therefore not only to win a click. It is to understand the recommendation that forms before the click, sometimes without a click.

Why AI cannot apply the same grid everywhere

A recommendation depends on the decision type. The riskier the decision, the less simple criteria are enough.

FactorEffect on AI criteria
Decision riskThe higher the risk, the more AI looks for proof, thresholds, compliance, limits and rejection criteria
Buying frequencyThe more recurring the purchase, the more customer experience signals can matter
Information asymmetryThe less the customer understands the field, the more AI looks for educational criteria
LocationThe more proximity matters, the more local profiles and reviews matter
Offer comparabilityThe more similar offers seem, the more AI reuses available market criteria
Accessible sourcesThe clearer and more corroborated the sources, the more defensible the recommendation

AI does not start from your sales promise. It starts from a need, a category and criteria it can justify.

Example 1: recurring local service

For a hairdresser, restaurant, landscaper or garage, AI may rely heavily on public local signals:

  • proximity;
  • Google Business Profile;
  • primary category;
  • average rating;
  • review volume;
  • review freshness;
  • customer sentiment;
  • availability;
  • photos and practical information.

Google explains that local results are mainly based on relevance, distance and prominence (Google Business Profile Help).

In this type of market, AI can recommend a company because it is easy to justify locally: well located, well rated, frequently reviewed and clearly categorized.

Risk

A competent company can be under-recommended if its local profile is incomplete, if reviews do not describe the right services or if the website does not confirm its area and specialties clearly.

Example 2: local intellectual profession

For an accountant, lawyer, architect or specialized consultant, the grid can change.

The Google rating is still useful, but it is not always enough. AI may look for:

  • specialization by client type;
  • situations handled;
  • sectors covered;
  • local seniority;
  • degrees, certifications or affiliations;
  • detailed service pages;
  • proof of expertise;
  • website clarity;
  • anonymized cases or mission examples.

An accountant can therefore be recommended for SMBs, freelancers, agricultural businesses, startups, property tax situations or company acquisitions depending on what AI finds in the sources.

Risk

If the website only carries generic promises, AI may compare the firm as a generalist. The specialization may be real, but it does not structure the recommendation.

Example 3: SEO or GEO agency

In SEO or GEO, declared experience matters less than visible proof.

An agency can claim that it understands Google, ChatGPT, Perplexity or LLMs. But AI may give more weight to signals that are easier to verify:

  • visible SERP positions;
  • published analysis;
  • original studies;
  • documented cases;
  • explained methodology;
  • citable content;
  • consistency between claims and observable results;
  • ability to position itself on the queries it works on.

The logic differs from professions where seniority or professional status plays a stronger role. For an SEO or GEO agency, proof through results can become a central credibility criterion.

In this context, a company that publishes useful, structured and verifiable analysis can enter a proof loop: the more its work helps engines answer correctly, the easier it becomes to treat that company as a credible source or provider.

This loop does not depend only on brand citation. If an analysis structures an engine’s answer, it can influence the decision even when the click or explicit citation does not appear.

Example 4: complex B2B supplier

For a B2B supplier, AI does not only search for “who exists”. It may search for who is defensible in a shortlist.

Criteria often become more demanding:

  • use cases;
  • integration;
  • fit with context;
  • verifiable proof;
  • risks avoided;
  • performance thresholds;
  • comparable references;
  • usage limits;
  • rejection criteria.

In this type of market, an AI recommendation looks less like a directory and more like a first buying grid.

Risk

A supplier can be cited but absent from the shortlist if AI cannot explain why it should be selected over a competitor that is easier to justify.

Example 5: technical or regulated offer

For a regulated, industrial, medical, cybersecurity or compliance offer, criteria can be stricter.

Evaluated elementWhat AI must understand
StandardWhich standard applies, and in which context
ProofWhich document, test, audit or certificate verifies compliance
ThresholdWhen the offer becomes insufficient
ExposureWhich risk level changes the requirement
LimitWhen the offer should not be selected
RejectionWhich missing element should exclude a supplier

When these elements are missing, AI can recommend a minimum standard. The risk is not a spectacular hallucination. The risk is a plausible but under-specified recommendation.

What Beyond Mentions data shows

In the first consolidated wave of the Beyond Mentions Observatory, we analyzed 4,320 Perplexity sonar answers over 3 UTC days, with 6 passes per question per day.

These figures do not describe every market. They show how a controlled corpus of AI answers mobilizes sources, proof, categories, criteria and shortlist logic.

Observed signalVolume in the corpusReading for market-specific criteria
Source dependency4,137/4,320 (95.8%)Available sources strongly structure the answer
Proof reuse3,714/4,320 (86.0%)Visible proof can become justification
Documentation and proof2,687/4,320 (62.2%)Documentation acts as decision infrastructure
Shortlist and vendor evaluation2,168/4,320 (50.2%)One answer in two activates selection logic
Criteria reuse1,464/4,320 (33.9%)Explicit criteria can structure the comparison
Category compression1,061/4,320 (24.6%)A wrong category can change applied criteria
Specification gap1,130/4,320 (26.2%)The requirement level can be formulated too low

The important reading is simple: LLMs do not recommend only from popularity. They reuse what the market makes readable: sources, proof, criteria and categories.

The 6 factors that make AI criteria vary

1. Decision risk

The more costly the wrong decision, the more AI must justify the recommendation.

Low riskHigh risk
Reviews, availability, proximityProof, compliance, thresholds, scenarios, rejection

2. Buying frequency

A frequent local service often generates more usable reviews. A rare or complex purchase generates fewer simple signals, so AI must look for more structured proof.

3. Specialization

The more specialization matters, the less a generic page is enough.

MarketUseful specialization criterion
AccountantClient type, sector, tax situation, management context
LawyerLegal domain, case type, jurisdiction, client profile
ConsultantProblem handled, method, context, decision level
Industrial supplierUse case, constraint, standard, exposure environment

4. Visible proof

Google recommends creating helpful, reliable, people-first content (Google Search Central). For LLMs, this connects to an operational principle: proof must be understandable by a human and extractable by a machine.

5. Source format

Google also explains that structured data helps understand page content, but should describe content visible to users (Google structured data).

Structured data can help. It does not replace a page that clearly explains criteria, proof and limits.

6. Category used

The category determines competitors and criteria. If AI places you in a category that is too broad, it can apply the criteria of a simpler market.

This connects with Category Compression Risk: an offer can be visible, but evaluated in the wrong family.

How to know which criteria AI applies to your market

The test must use natural questions, not only your brand name.

  1. List the buying situations where you want to be recommended.
  2. Ask the same questions in ChatGPT, Perplexity, Gemini and Claude.
  3. Note the criteria used in each answer.
  4. Capture the sources cited or visibly reused.
  5. Identify associated competitors.
  6. Classify signals: reviews, proximity, specialization, proof, compliance, price, result, risk.
  7. Spot what favors you, what commoditizes you and what excludes you.
  8. Publish missing criteria as clear blocks.
Question to testWhat it reveals
”How do I choose a [profession]?”Generic decision grid
”Who is the best [profession] for [situation]?”Contextual criteria
”Which providers do you recommend for [need]?”Likely shortlist
”Which risks should I check before choosing?”Rejection criteria
”Which proof should I ask before signing?”Expected proof
”Which suppliers should I avoid if [constraint]?”Limits and exclusions

Repeat questions several times. One answer can vary. A repeated pattern reveals a more stable grid.

What to publish depending on your market

MarketPriority content
Local serviceComplete Google profile, detailed reviews, location pages, photos, local FAQ
Intellectual professionSpecialty pages, situation guides, anonymized cases, proof of expertise
SEO or GEO agencyStudies, methodology, SERP analysis, practical cases, proof of results
Industrial B2BCriteria/proof matrices, use cases, standards, thresholds, limits
Regulated offerCompliance documentation, verifiable proof, rejection criteria, buyer FAQ
Premium offerAvoided risk, cost of a poor decision, contextual comparisons

The ideal format remains simple: question, context, criterion, proof, threshold, limit, rejection.

Why brand citations are not enough

A citation answers one question:

“Does AI know your name?”

Criteria variation answers a more important question:

“Does AI know why you should be selected in this specific market?”

A brand can be cited and poorly recommended. It can also be cited less often, but structure the decision grid if its content explains market criteria better.

This is why GEO should not stop at brand citations. The real value is Decision Presence: being associated with the right criteria, proof and buying situations.

Quick diagnosis

Symptom in AI answersProbable problemPriority correction
AI cites your brand but recommends a competitorPresence without preferencePublish criteria that justify selection
AI compares your offer with generic playersCategory compressionClarify category and wrong substitutes
AI mostly discusses priceAvoided risk is absentDocument the cost of a poor decision
AI does not reuse your proofLow Proof reuseTurn proof into extractable blocks
AI relies on weak or incomplete reviewsUnfavorable source dependencyStrengthen visible sources
AI ignores your specializationPages are too genericCreate pages by situation, client or constraint

Key takeaway

LLMs do not recommend every company with the same grid.

They adapt criteria to the market:

  • local reputation for some recurring services;
  • specialization for intellectual professions;
  • visible proof for SEO and GEO;
  • criteria, risks and thresholds for complex B2B buying;
  • compliance and rejection criteria for regulated offers.

The useful work is therefore to identify the grid AI already applies to your market, then make the right criteria visible, verifiable and easy to reuse.

FAQ

Does ChatGPT use the same criteria to recommend every company?

No. ChatGPT, Perplexity and LLMs adapt criteria to the market type, risk level, buying frequency, location and available sources.

Which criteria matter for a local service?

For a recurring local service, AI may give strong weight to proximity, Google Business Profile, reviews, rating, review freshness and customer sentiment.

Which criteria matter for an intellectual profession?

For an accountant, lawyer or consultant, AI may look more at specialization, client types, seniority, proof of expertise and website clarity.

Why can an SEO agency be recommended without being the oldest one?

In SEO or GEO, visible proof through results, published analysis, rankings achieved and the ability to explain the market can matter more than declared experience.

How do I know which criteria AI applies to my market?

Test several natural questions in ChatGPT, Perplexity, Gemini and Claude, then code the criteria used, sources cited, competitors associated, proof reused and exclusion cases.

Buyer question

What question does the buyer ask AI?

Documentation risk

Which documentation simplification can lower the standard?

Standard to impose

Which technical requirement must be clearly formulated?

Expected proof

Which evidence should be requested or published?

Rejection criterion

Which criterion excludes an insufficient answer?

Measure how AI already understands your market.

A short diagnostic identifies category compression, documentation gaps and criteria that influence the decision.