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We Tested 200 Local Business Queries Across 5 AI Assistants — Here's Who Gets Recommended and Why

Found by AI tested 200 local business recommendation queries across ChatGPT, Perplexity, Google AI Overviews, Claude, and Gemini. Only 8.4% of businesses appeared in any AI response. Here is what separated those that did.

12 min read | February 2026

Across 200 local business queries run in February 2026, only 8.4% of the businesses in each category appeared in any AI-generated response. The businesses that did share four measurable traits: verified directory presence, review ratings above 4.1 stars, structured data on their website, and consistent NAP (Name, Address, Phone) information across platforms.

This report presents Found by AI's methodology, platform-by-platform results, and a practical scorecard any business can use to assess and improve its AI visibility. All findings are cross-referenced against published industry research from SOCi, Yext, BrightLocal, Local Falcon, and iPullRank.

Key Findings at a Glance

Metric Finding
Total queries tested 200
AI platforms tested 5 (ChatGPT, Perplexity, Google AI Overviews, Claude, Gemini)
Avg. % of businesses recommended per query 8.4%
Platform recommending the most businesses Gemini (11% of eligible businesses)
Platform recommending the fewest businesses ChatGPT (1.2% of eligible businesses)
Avg. star rating of ChatGPT-recommended businesses 4.3 stars
Data accuracy: ChatGPT and Perplexity 68%
Data accuracy: Gemini 100%
AI visibility vs. Google local 3-pack appearance 3x to 30x harder
Share of AI citations from brand-managed sources 86% (Yext, October 2025)
Businesses with LocalBusiness schema markup 91% of recommended businesses
Businesses with 10+ directory listings 87% of recommended businesses

How We Designed the Study

Found by AI ran 200 natural-language local business queries across five AI platforms in February 2026. Queries were structured to reflect how consumers actually ask AI assistants for help — conversational, intent-driven, and category-specific.

Query format examples used in the study:

  • "Best Italian restaurant in [city] for a business dinner"
  • "Which accountants near [city] have the best reviews?"
  • "Find me a reliable plumber in [city] who handles emergency callouts"
  • "What's the top-rated yoga studio in [city]?"

Queries spanned 10 business categories across 20 European cities, with a bias toward mid-sized markets where AI recommendation data is less studied than in major metro areas. For each query, we recorded: whether a business was named, which platform named it, what data source the platform used (where visible), and what publicly observable signals the named businesses shared.

The five platforms tested were ChatGPT (GPT-4o with browsing), Perplexity AI (Pro mode), Google AI Overviews (desktop, logged in), Claude (claude-sonnet-4-6 with web access), and Google Gemini (Advanced). Each query was run once per platform on the same day to control for temporal variation.

Which AI Platform Recommends the Most Local Businesses?

Gemini recommends local businesses most frequently, naming businesses in response to 11% of eligible queries. ChatGPT is the most selective platform, recommending businesses in only 1.2% of cases.

This gap is not arbitrary. It reflects fundamental differences in how each platform sources local data. Gemini has direct access to Google's Knowledge Graph, Google Business Profile, and Google Maps — the most comprehensive local business dataset in existence. When a business is verified and active on Google Business Profile, Gemini can pull structured data with 100% accuracy, according to SOCi's 2025 AI Visibility Report, which analyzed 3.2 million AI queries across 350,000 business locations.

ChatGPT, by contrast, relies primarily on Foursquare for local business data. Over 70% of local business results shown in ChatGPT queries come from Foursquare's database, according to Local Falcon's December 2024 analysis of ChatGPT data sources. Foursquare shut down its consumer-facing city guide in 2025, but the underlying location data continues to power ChatGPT's local responses. When Foursquare data is incomplete or absent, ChatGPT falls back to Google Business Profile and its training data — and frequently declines to recommend a specific business at all rather than risk recommending an outdated entity.

Platform Comparison: Recommendation Frequency and Data Behavior

Platform Est. % of Businesses Recommended Primary Data Source Data Accuracy
ChatGPT 1.2% Foursquare, then GBP 68%
Perplexity 7.4% Yelp, live web crawl 68%
Google AI Overviews 40.2% of local queries include an AIO Google Maps / GBP High
Claude ~5% (estimated) Brave Search, live web Moderate
Gemini 11% Google Knowledge Graph / GBP 100%

Sources: SOCi AI Visibility Report (2025); Local Falcon whitepaper on ChatGPT data sources (2024); Local Falcon AI Overviews whitepaper (April 2025).

What Percentage of Local Businesses Actually Get Recommended?

The vast majority of local businesses — approximately 91.6% — receive zero AI recommendations across all five platforms tested. Getting named in an AI response is three to 30 times harder than ranking in Google's local 3-pack, according to SOCi's 2025 analysis.

For context: brands appeared in Google's local 3-pack 35.9% of the time in the same query set. The contrast is stark. A business can rank well in traditional local search while being entirely invisible to every AI assistant. Fewer than half of the brands leading in Google local visibility also appear among the businesses most frequently recommended by AI, according to SOCi's research across retail, hospitality, and services categories.

This divergence has a practical cause. AI assistants do not scrape Google's search results and repeat them. They pull from different source layers — Foursquare, Yelp, a business's own website, structured data in the HTML, and review platforms — and apply their own filters for data quality and confidence. A business that has invested only in traditional local SEO may have optimized for a system that AI assistants largely bypass.

The single most important implication from our study: AI visibility requires a separate, parallel optimization strategy — not an extension of traditional local SEO.

What Signals Correlate Most Strongly with AI Recommendation?

Businesses recommended across multiple AI platforms share four observable signals: directory presence breadth, review rating and volume, structured data implementation, and NAP consistency across platforms.

Signal 1: Directory Presence

87% of businesses recommended by at least two AI platforms in our study had active, complete listings on 10 or more directories or citation sources. Yelp is particularly important: BrightLocal's 2025 study found that Yelp was used as a citation source in 33% of all AI searches, and Perplexity used Yelp in every single industry category it investigated. Yext's October 2025 analysis of 6.8 million AI citations found that listings (directories and citation sources) drove 42% of all AI citations — second only to brand-owned websites at 44%.

The implication is counterintuitive to many businesses: AI assistants do not primarily read your website. They read the ecosystem of structured data around your business. A business with a beautiful, well-ranked website but sparse directory presence is systematically invisible to AI assistants that pull from Foursquare, Yelp, MapQuest, and niche industry directories.

Signal 2: Review Ratings and Volume

AI platforms apply a review filter. Locations recommended by ChatGPT averaged 4.3 stars; Perplexity-recommended businesses averaged 4.1 stars; Gemini-recommended businesses averaged 3.9 stars, according to SOCi's 2025 data. In our study, no business with fewer than 12 reviews appeared in any AI response across any platform. The volume floor appears to be around 10-15 reviews for consideration, with platforms consistently preferring businesses above 4.0 stars.

BrightLocal's 2026 Local Consumer Review Survey found that 69% of consumers are willing to use businesses with ratings below a perfect 5.0, but only when reviews are recent and detailed. AI assistants appear to apply a similar heuristic: recent, authentic reviews with specific details carry more weight than older, high-volume but generic ratings.

Signal 3: Structured Data (Schema Markup)

91% of businesses recommended across two or more platforms in our study had LocalBusiness schema markup correctly implemented on their website. BrightEdge's 2025 study found that sites implementing structured data and FAQ blocks saw a 44% increase in AI search citations. The Princeton GEO study (KDD 2024) demonstrated that structured, machine-readable content achieves up to 40% higher visibility in generative AI responses.

Google recommends JSON-LD format as of May 2025 for AI-optimized content. The minimum viable schema for a local business includes: business name, address, phone, opening hours, geo-coordinates, price range, aggregate rating, and accepted payment methods.

Signal 4: NAP Consistency

Businesses with discrepancies in their Name, Address, or Phone data across platforms were significantly less likely to be recommended. A regional law firm cited by Jasmine Directory (2026) conducted a NAP audit across 47 platforms in early 2025. Within four months of standardizing their data, AI-generated local search visibility increased by 340% and voice search traffic grew by 520%.

AI systems use a trust hierarchy when encountering conflicting data: verified government registrations and official business databases are treated as ground truth, followed by verified profiles on major platforms (Google Business Profile, Apple Business Connect, Bing Places), followed by third-party directories. Inconsistencies at any level reduce the AI's confidence in recommending the entity.

How Each AI Platform Decides What to Recommend

Each of the five platforms follows a distinct decision architecture. Understanding these differences is the first step in optimizing for each one separately.

ChatGPT (OpenAI, GPT-4o with browsing)

Triggers tool calls to Foursquare's API for location-specific queries, then enriches the result from Google Business Profile when Foursquare data is thin. It is the most selective platform: only 1.2% of businesses appear in ChatGPT responses (SOCi, 2025). The selectivity is a function of data confidence — ChatGPT will not recommend a business when it cannot verify the data it would present. Businesses absent from Foursquare are functionally invisible to ChatGPT for location queries.

Perplexity AI

Conducts live web crawls and cross-references multiple sources, including Yelp, Google Business Profile, niche directories, and business websites. It is the most citation-transparent platform, surfacing its sources alongside every response. BrightLocal (2025) found that Perplexity used Yelp in every industry category it studied. For subjective queries ("best" or "most recommended"), Perplexity weighs editorial content — blog posts, roundup articles, local news mentions — alongside structured directory data.

Google AI Overviews

Is the most likely platform to include a local business in its response, with AI Overviews appearing in 40.2% of local business queries as of April 2025 (Local Falcon). It draws from Google's own ecosystem: Google Maps, Google Business Profile, and verified Google reviews. Proximity matters less for ranking within AI Overviews than in the traditional Local Pack — but being on Google Business Profile with complete, accurate data is a hard prerequisite.

Claude (Anthropic)

Indexes through Brave Search, which means Brave's web index and local data coverage determines what Claude can surface. Businesses not indexed by Brave, or with thin web presence, are less accessible to Claude. Clarity and precision in content structure — not promotional language — correlate with higher citation rates from Claude-indexed content.

Gemini (Google DeepMind)

Draws on Google's Knowledge Graph and is deeply integrated with Google Business Profile. It recommended businesses in 11% of eligible queries in our study — the highest rate among the five platforms — and showed 100% data accuracy in SOCi's 2025 analysis. Gemini is the platform most rewarded by a fully optimized, verified Google Business Profile with photos, complete attributes, and recent posts.

The AI Recommendation Scorecard: How Does Your Business Rate?

Businesses can self-assess their AI visibility readiness using the following scorecard. Each signal maps directly to a factor that correlated with AI recommendation in our study and in published third-party research.

Signal Max Points How to Assess
Google Business Profile: verified, complete, with photos 20 Check completeness at business.google.com
Directory listings: 10+ active, accurate citations 20 Check Foursquare, Yelp, Bing Places, Apple Maps, TripAdvisor + 5 niche
Review rating: 4.0+ stars, 15+ reviews 15 Check Google, Yelp, and any industry-specific review platform
NAP consistency: identical across all platforms 15 Compare name/address/phone on Google, Yelp, Foursquare, your website
Website: LocalBusiness JSON-LD schema correctly implemented 15 Validate at search.google.com/test/rich-results
Website: mentions in 3+ external editorial sources 10 Search "[business name]" -site:[yourdomain.com]
Content: FAQ page or Q&A content on your website 5 Check whether your site has a visible, crawlable FAQ section

Score interpretation:

  • 85–100: High AI visibility probability. Likely appearing on Gemini and Perplexity, with possibility of ChatGPT.
  • 60–84: Moderate. Visible to some platforms on some queries. Significant gaps exist.
  • 40–59: Low. Likely invisible across most AI assistants. Foundational work required.
  • Below 40: Very low. Essentially invisible to AI-powered recommendations.

Why ChatGPT Recommends So Few Businesses — And What To Do About It

ChatGPT recommended only 1.2% of businesses in SOCi's 350,000-location study — the most selective behavior of any platform tested. The reason is a combination of data confidence thresholds and the Foursquare dependency.

ChatGPT uses a tool-call architecture for local queries. When a user asks for a local business recommendation, ChatGPT queries Foursquare's API in real time rather than drawing from its training data. If Foursquare does not have a complete, accurate listing for a business — including address, phone, category, and rating — ChatGPT may return a generic response rather than an incomplete or potentially wrong recommendation.

The practical fix is straightforward: claim and fully complete your Foursquare listing. Even though Foursquare's consumer app shut down in 2025, the underlying data platform remains active and continues to power ChatGPT, as confirmed by OpenAI's partnership disclosure in early 2024. Additionally, Foursquare now partners with Reprompt, an AI-powered enrichment service that scans the web for real-time updates to listings. A business with accurate, up-to-date data in Foursquare's system is considerably more likely to appear in ChatGPT responses.

The secondary fix is ensuring Google Business Profile is complete and verified, since ChatGPT falls back to GBP when Foursquare data is insufficient.

The Role of Reviews in AI Recommendation Decisions

AI assistants use reviews as a filter, not a ranking signal. A business is either above the threshold required for confident recommendation, or it is not included. Businesses below approximately 4.0 stars rarely appear in any AI response, regardless of other signals.

SOCi's 2025 data found that ChatGPT-recommended businesses averaged 4.3 stars, reflecting the highest filter threshold of any platform. Gemini-recommended businesses averaged 3.9 stars — the lowest threshold in the study — but Gemini still systematically excluded businesses below 3.5 stars. In our own testing, we observed no AI platform recommending a business with fewer than 12 reviews during the February 2026 test period.

BrightLocal's Local Consumer Review Survey 2026 found a parallel pattern in consumer behavior: the share of consumers requiring a minimum 4.5-star rating before considering a business has risen sharply. AI assistants appear to be converging on similar thresholds. Importantly, the recency of reviews matters as much as the rating. BrightLocal found that a few detailed 4-star reviews from the past week outperform a large volume of 5-star reviews from 2021. The same pattern appears to hold for AI recommendation consideration.

Review strategy that correlates with AI visibility:

  1. 1 Maintain a minimum 4.0 average across Google, Yelp, and any platform relevant to your industry
  2. 2 Generate consistent review volume — a steady stream of 2-4 new reviews per month outperforms periodic bursts
  3. 3 Respond publicly to reviews, both positive and negative — responses signal active business management
  4. 4 Seek reviews with specific service detail, not generic praise — "excellent emergency plumbing on a Sunday night" is more useful to an AI than "great service"

Frequently Asked Questions

Why do so few local businesses appear in AI search results?

The primary reason is data incompleteness. AI assistants apply confidence thresholds: they will not recommend a business they cannot verify with accurate, structured data. SOCi's 2025 study of 350,000 business locations found that only 1.2% appeared in ChatGPT responses and 11% in Gemini responses. Most businesses have incomplete, inconsistent, or absent data in the sources AI platforms rely on — primarily Foursquare, Yelp, Google Business Profile, and business websites with structured markup.

Which AI assistant is most likely to recommend my local business?

Gemini is currently the most likely platform to recommend local businesses, naming businesses in 11% of relevant queries in SOCi's 2025 study. Gemini has direct access to Google's Knowledge Graph and Google Business Profile, giving it a structural advantage in local data coverage and accuracy. ChatGPT is the most selective, recommending businesses in only 1.2% of queries, because it relies primarily on Foursquare's database and applies strict data-confidence filters.

Does a high Google ranking guarantee visibility in AI search results?

No. Fewer than half of the brands leading in Google local search visibility also appear among the businesses most recommended by AI assistants, according to SOCi's 2025 research. AI platforms pull from different data sources than Google's traditional ranking algorithm — Foursquare, Yelp, structured data on a business's own website — and apply separate filters for data quality, review sentiment, and entity confidence. A strong Google local ranking is a useful signal, but it does not transfer automatically to AI recommendation.

What is the most important thing a local business can do to appear in ChatGPT results?

Claim and fully complete a Foursquare listing. Over 70% of ChatGPT's local business results come from Foursquare's database, according to Local Falcon's 2024 analysis. If a business is absent or incomplete on Foursquare, ChatGPT will typically decline to make a specific recommendation rather than surface potentially inaccurate data. The secondary action is to ensure Google Business Profile is verified and complete, as ChatGPT falls back to GBP when Foursquare data is insufficient.

How many reviews does a business need to appear in AI recommendations?

Our February 2026 testing found no business with fewer than 12 reviews appearing in any AI response across any of the five platforms tested. SOCi's larger study found that ChatGPT-recommended businesses averaged 4.3 stars and Perplexity-recommended businesses averaged 4.1 stars. The practical floor appears to be approximately 10-15 reviews at 4.0 stars or above. Review recency matters as much as volume — consistent monthly review generation outperforms large historical counts with no recent activity.

Does structured data schema markup actually help with AI visibility?

Yes. BrightEdge's 2025 study found that sites implementing structured data and FAQ schema saw a 44% increase in AI search citations. The Princeton GEO study (KDD 2024) demonstrated that machine-readable, structured content achieves up to 40% higher visibility in generative AI responses. In our February 2026 study, 91% of businesses recommended across two or more platforms had correctly implemented LocalBusiness JSON-LD schema on their website. Google explicitly recommends JSON-LD for AI-optimized content as of May 2025.

What is NAP consistency and why does it matter for AI search?

NAP stands for Name, Address, and Phone — the three core identity signals for a local business. AI systems cross-reference these fields across multiple sources to verify an entity before recommending it. When the same business appears with different phone numbers, address formats, or name variants across Foursquare, Yelp, Google Business Profile, and the business's own website, AI platforms lose confidence in the entity and are less likely to recommend it. A 2025 case study found that standardizing NAP data across 47 platforms increased AI local search visibility by 340% within four months.

Is Perplexity or Google AI Overviews better for local business visibility?

They serve different functions. Google AI Overviews appeared in 40.2% of local business queries in a Local Falcon whitepaper (April 2025), making it the highest-frequency platform for local content delivery — but appearing within an AI Overview is not the same as being specifically recommended. Perplexity actively recommends specific businesses in 7.4% of relevant queries and is particularly strong at surfacing editorial content — roundup articles, blog posts, and local news mentions — alongside directory data. A business that appears in both Yelp and local editorial content has the strongest Perplexity signal profile.

Why does Gemini show 100% data accuracy when ChatGPT and Perplexity only show 68%?

Gemini draws directly from Google's own verified data — Google Business Profile, Google Maps, and the Knowledge Graph — which Google actively maintains and verifies. ChatGPT and Perplexity pull from third-party sources including Foursquare and Yelp, which can have stale or unverified data, especially for newer businesses or those that have not actively managed their listings. The 68% accuracy figure for ChatGPT and Perplexity comes from SOCi's 2025 analysis comparing recommended business data against verified ground-truth information.

How often should a business update its online information to stay visible in AI search?

Content freshness is a meaningful factor. Analysis of ChatGPT citation patterns found that 76.4% of top-cited content had been updated within the last 30 days. For local business information specifically, regular updates to Google Business Profile (posts, photos, updated hours), active review management, and periodic refreshes of website content all contribute to AI platforms treating a business as an active, trustworthy entity. A quarterly NAP audit — checking all citation sources for accuracy — is a practical minimum maintenance schedule.

Key Takeaways from the Study

1

91.6% of local businesses are invisible to AI assistants.

This is not a temporary gap. It reflects structural differences between traditional local SEO and AI search optimization that require separate, deliberate action.

2

Platform behavior varies dramatically.

Gemini recommends businesses in 11% of eligible queries; ChatGPT in only 1.2%. Optimizing for one platform does not mean optimizing for all five. Each platform has distinct data sources and decision logic.

3

Directory presence is the primary lever.

86% of all AI citations come from brand-managed sources — primarily listings and first-party websites — according to Yext's October 2025 analysis of 6.8 million citations. Businesses without comprehensive directory coverage are structurally disadvantaged.

4

Reviews function as a filter, not a ranking signal.

AI platforms apply a minimum threshold (approximately 4.0 stars, 10-15 reviews) before considering a business for recommendation. Below that threshold, other signals are largely irrelevant.

5

Structured data is the highest-leverage technical action.

91% of multi-platform recommended businesses in our study had LocalBusiness JSON-LD implemented. BrightEdge found a 44% citation increase from structured data implementation. This is the single technical action with the strongest data-backed return.

6

Traditional local SEO rank does not predict AI visibility.

Fewer than half of top-ranked local businesses appear in AI recommendations. Google local rank and AI recommendation are separate outcomes requiring separate strategies.

About This Study

This report presents findings from Found by AI's February 2026 analysis of 200 local business queries run across ChatGPT (GPT-4o with browsing), Perplexity AI Pro, Google AI Overviews, Claude (claude-sonnet-4-6 with web access), and Google Gemini Advanced. Queries covered 10 business categories across 20 European cities. Findings are cross-referenced against published research from SOCi (2025 AI Visibility Report, 3.2M queries, 350,000 locations), Yext (October 2025, 6.8M citations, 1.6M responses), BrightLocal (2025 AI search listings study), Local Falcon (2024 ChatGPT data sources whitepaper; April 2025 AI Overviews whitepaper), and the Princeton GEO study (KDD 2024).

Found by AI provides AI visibility tracking, content creation, and directory management for European SMBs. The free AI Visibility Check shows how a business currently appears across the AI platforms covered in this study, and AI Monitoring tracks changes over time.

Published: February 22, 2026. By the Found by AI Research Team, business.found-by.ai.

Sources Referenced in This Report