How Does ChatGPT Decide Which Local Businesses to Recommend?

By Rei · CiteMonthly · Published 10 October 2026

Short answer: OpenAI does not publish a ranking formula for local recommendations. What it does document is the pipeline. When someone asks ChatGPT for a business "near me", ChatGPT can search the web, rewrite the question into a search query that includes the person's approximate location (for example "top restaurants San Francisco"), send it to third-party search providers, and pull in business listings from trusted partners [1]. It then ranks results "using multiple factors intended to help users find relevant, reliable information", and OpenAI says plainly that "placement is not guaranteed" [1]. The one hard requirement it names: your site must let its search crawler, OAI-SearchBot, in [1] [3]. Everything else in this article is about giving that pipeline clear, consistent facts to find.

Many articles on this question offer a confident list of "ChatGPT ranking factors". We read OpenAI's own pages instead, and mark clearly where documentation ends and inference begins.

What happens when someone asks ChatGPT for a local recommendation?

OpenAI's help page on searching the web with ChatGPT describes the steps in fairly concrete terms [1]:

ChatGPT decides whether to search. It "may search the web automatically when your question would benefit from current information." People can also turn search on manually.
It estimates where the person is. ChatGPT "may use an approximate location based on your IP address to provide relevant local results." Sharing precise device location is "optional and off by default."
It rewrites the question. When it uses outside search providers, ChatGPT "typically rewrites your query into one or more targeted queries." OpenAI's own example: "What are some good restaurants near me?" asked from the San Francisco area may become "top restaurants San Francisco."
Memory can shape the query. If memory is on, a saved detail such as being vegan can turn the search into "good vegan restaurants San Francisco."
It pulls in listings. ChatGPT "may share your location with trusted third-party providers that help provide more local information, such as nearby business listings or weather reports."
It ranks and answers with citations. Responses that use search "may include citations", and on iOS and Android local results may also include a map.

Two details matter. First, the search query is usually a rewritten, short version of what the customer typed, built around a place name and a type of business. Second, the location is usually approximate. If a customer hasn't shared their device location, ChatGPT is often working at city level, not street level.

Which search providers and data sources does ChatGPT use?

OpenAI says ChatGPT search "leverages third-party search providers, as well as content provided directly by our partners" [2]. Its help page links to the privacy policies of Microsoft and Shopify as search providers that may process queries [1]. For restaurants specifically, it names its reservation partners: availability may come from OpenTable, Resy or Yelp, depending on the restaurant and country [1].

OpenAI does not list which business-listing providers it uses for other kinds of local businesses. What its developer documentation does show is that listing platforms can send ChatGPT a business feed: a collection of local business records that "ChatGPT indexes ... for search" [4]. Each record must include a business name, an address, a latitude and longitude, a phone number and a website URL [4]. That spec is written for platforms that build a "Get Quote" button into ChatGPT, not for individual businesses, but it tells you which basic facts ChatGPT's local systems are built around.

Our inference (not OpenAI's wording): your name, address, phone number and website are likely to reach ChatGPT through more than one route: your own site, search providers, and listing platforms. If those copies disagree, it's harder for any system to be sure they describe the same business.

What does OpenAI say about how results are ranked?

Very little, on purpose. The official line is that ChatGPT "ranks search results using multiple factors intended to help users find relevant, reliable information. Placement is not guaranteed" [1]. There is no published list of weights, no paid placement for organic answers mentioned in the help page, and no "submit your business" form for ordinary local businesses.

So treat any precise list of ChatGPT ranking factors with care: it can't be confirmed from OpenAI's documentation. We checked one widely repeated claim about how ChatGPT matches business records, and it did not appear on the OpenAI page it was attributed to (see our fact-check log).

What we can say with confidence is that ChatGPT relies on web search and listings, and that it warns users that "search results and citations can be incomplete, outdated, or incorrect" [1]. In practice, that means the businesses that get named are drawn from what those sources say. If the web says little about you, there is little for ChatGPT to find.

Can I block ChatGPT by accident?

Yes, and this is the most common fixable problem we see. OpenAI's help page says that to make a site eligible for inclusion you must "allow OAI-Searchbot to crawl the site and confirm that the website host or content delivery network allows traffic from OpenAI's published searchbot IP addresses" [1].

OpenAI's crawler documentation adds detail [3]:

OAI-SearchBot is used "to surface websites in search results in ChatGPT's search features." Sites that opt out of it "will not be shown in ChatGPT search answers, though can still appear as navigational links."
GPTBot is a separate crawler for training. The settings are independent, so you can allow OAI-SearchBot while blocking GPTBot.
ChatGPT-User is used when a user's question causes ChatGPT to visit a page. It "is not used for crawling the web in an automatic fashion."
Changes to robots.txt can take "~24 hours" to take effect for search results.

Perplexity works the same way. Its documentation says PerplexityBot "is designed to surface and link websites in search results on Perplexity", recommends allowing it in robots.txt, and notes that changes may take up to 24 hours [6].

What to check: open yourdomain.com/robots.txt. If you see Disallow: / under User-agent: *, or under OAI-SearchBot or PerplexityBot, you are telling those crawlers to stay out. Also ask whoever runs your hosting or firewall whether "bot protection" is blocking them.

How does Google's local ranking advice fit in?

ChatGPT is not Google, but Google publishes the clearest official description of how local results are chosen, and the underlying ideas are the ones any local search system has to deal with. Google's Business Profile help says local results are "mainly based on relevance, distance, and popularity" [5], and explains:

Relevance: how well a profile matches what someone searched for, which is why Google asks for "complete and detailed business info" [5].
Distance: how far the business is from the searcher; if the customer doesn't share their location, Google "uses what it knows about their location" [5].
Prominence: how well-known a business is, "based on info like how many websites link to your business and how many reviews you have." Google adds that "more reviews and positive ratings can help your business's local ranking" [5].

Google also says "there's no way to request or pay for a better local ranking" [5]. We'd apply the same realism to ChatGPT.

What can a small business actually do?

None of these steps guarantees a mention. They make it easier for any search or AI system to find accurate facts about you.

Let the crawlers in. Allow OAI-SearchBot and PerplexityBot in robots.txt, and check that your host or firewall isn't blocking them [1] [3] [6].
Say what you do and where, in plain text. ChatGPT's rewritten queries pair a business type with a place [1]. Your home page and service pages should state both clearly, for example "emergency plumber in Leeds and surrounding villages", not just a logo and a slogan.
Keep your name, address, phone and website identical everywhere. These are the fields OpenAI's own business-feed format requires [4]. Fix old phone numbers and moved addresses on your site, Google Business Profile and directory listings.
Complete your Google Business Profile. Full address, hours, category and attributes, as Google recommends [5]. Even though this is Google's system, profile data is widely reused across the web.
Earn real reviews and reply to them. Google says replies show you value feedback and that more reviews and positive ratings can help local ranking [5].
Publish answers to the questions your customers ask. Prices, timings, areas covered, what's included. If your site is the only place those answers exist, it's the place a search has to cite.
Get mentioned for real. Local news, suppliers' stockist pages, trade associations, event sponsorships. Don't buy links or trade them: Google's spam policies call "buying or selling links for ranking purposes" link spam [7], and Google's AI search guide says "seeking inauthentic 'mentions'" isn't as helpful as it might seem [8].

How do I check whether ChatGPT mentions my business?

Ask it the way a customer would. Use a logged-out browser window or a fresh chat, and include your town: "Who's a good [your service] in [your town]?" Try three or four phrasings, plus one specific question ("Who does same-day boiler repair in [town]?"). Note who gets named and which sources are cited. Then open those sources. They show you which sites ChatGPT is reading for your category.

Answers change from one run to the next and depend on location and memory [1], so one check is a snapshot, not a verdict.

Frequently asked questions

Can I pay ChatGPT to recommend my business?

OpenAI's help page doesn't describe any way to buy placement in ChatGPT's search answers, and says placement "is not guaranteed" [1]. Be wary of anyone selling guaranteed ChatGPT rankings.

Does ChatGPT use Google Business Profile?

OpenAI doesn't say. It says it uses third-party search providers, partner content and "trusted third-party providers" of business listings, without naming the listing providers for most business types [1] [2]. Keeping your Google profile accurate is still worthwhile for Google itself [5].

If I block GPTBot, will I disappear from ChatGPT search?

Not according to OpenAI. GPTBot (training) and OAI-SearchBot (search) are controlled separately. It's OAI-SearchBot you need to allow to appear in search answers [3].

Why does ChatGPT recommend a business in the next town?

ChatGPT often works from an approximate, IP-based location unless the user shares device location [1], so its idea of "near me" can be broad. Clearly listing the areas you serve gives it something specific to match.

Want to know what ChatGPT says about you?

CiteMonthly runs a free "Does ChatGPT mention you?" check. We ask ChatGPT and Perplexity the questions your customers ask, then email you their answers: who gets named, which sources they cite, and whether you're one of them. No card, no account. Email citemonthly@gmail.com to request your free check.

Sources

OpenAI Help Center, "Searching the web with ChatGPT". https://help.openai.com/en/articles/9237897-chatgpt-search (opened 10 Oct 2026)
OpenAI, "Introducing ChatGPT search" (31 Oct 2024, with 2025 updates). https://openai.com/index/introducing-chatgpt-search/ (opened 10 Oct 2026)
OpenAI Platform docs, "Overview of OpenAI Crawlers". https://platform.openai.com/docs/bots (opened 10 Oct 2026)
OpenAI Developers, "Local services Get Quote conversion spec". https://developers.openai.com/plugins/guides/local-services-request-quote-conversion-spec (opened 10 Oct 2026)
Google Business Profile Help, "Tips to improve your local ranking on Google". https://support.google.com/business/answer/7091 (opened 10 Oct 2026)
Perplexity docs, "Perplexity Crawlers". https://docs.perplexity.ai/guides/bots (opened 10 Oct 2026)
Google Search Central, "Spam policies for Google web search" (link spam). https://developers.google.com/search/docs/essentials/spam-policies (opened 10 Oct 2026)
Google Search Central, "Optimizing your website for generative AI features on Google Search". https://developers.google.com/search/docs/fundamentals/ai-optimization-guide (opened 10 Oct 2026)