Why Does AI Recommend My Competitors Instead of Me?

You ask ChatGPT for the best plumber in your area. Your competitor shows up. You do not. This is not random. AI search engines do not recommend businesses based on who has the best Google ranking. They recommend based on who has the best data in the sources AI actually queries. If your competitor has a complete Foursquare listing with correct hours, a well-reviewed Yelp page, and structured data on their website, AI will recommend them. If your data is missing, incomplete, or inconsistent, AI will skip you entirely. This guide explains exactly why this happens and what to do about it. For the full picture of how AI makes these decisions, see how ChatGPT finds local businesses (/blog/how-chatgpt-finds-local-businesses).

Why Does ChatGPT Recommend Some Businesses Over Others?

ChatGPT's local recommendations come primarily from Foursquare's Places API. When a user asks for a recommendation, ChatGPT queries Foursquare for businesses matching the category and location. Foursquare returns results ranked by relevance, which is determined by listing completeness, accuracy, reviews, and proximity.

If your competitor claimed their Foursquare listing and you did not, they appear and you do not. If their listing has complete hours, photos, categories, and a verified phone number while yours is missing half these fields, they rank higher.

ChatGPT also cross-references Yelp data for review quality and sentiment. A competitor with 50 positive Yelp reviews sends stronger quality signals than a business with no Yelp presence. The recommendation is not about who is the better business. It is about who has better data in the sources AI queries.

What Specific Data Gaps Cause AI to Skip Your Business?

There are five common data gaps that cause AI to skip your business.

Gap 1: No Foursquare listing or an unclaimed one. If your business is not in Foursquare's database, ChatGPT literally cannot find you for local queries. Many businesses exist in Foursquare from historical user contributions but have never been claimed or updated.

Gap 2: Unclaimed or incomplete Yelp page. Yelp is the second most important data source for AI recommendations. An unclaimed page with no photos, incomplete hours, and unanswered reviews hurts your AI visibility.

Gap 3: NAP inconsistencies. If your business name, address, or phone number differs between your website, Foursquare, and Yelp, AI systems lose confidence in your business entity.

Gap 4: No schema markup. Without LocalBusiness JSON-LD on your website, AI systems that crawl the web cannot extract your business data cleanly.

Gap 5: Few or negative reviews. AI systems use review sentiment and volume as quality signals. Businesses with more positive reviews are more likely to be recommended.

For more on fixing NAP issues specifically, see our guide on NAP consistency for AI search (/blog/nap-consistency-ai-search).

How Do You Find Out What AI Says About Your Competitors?

Understanding your competitive position in AI search requires direct testing.

Step 1: Ask ChatGPT for recommendations in your category and city. Note which businesses appear, in what order, and what information ChatGPT provides about each.

Step 2: Ask the same questions in Perplexity. Note which websites Perplexity cites and whether your website appears.

Step 3: Ask ChatGPT specifically about your business by name. Does it know you exist? What information does it provide? Is it accurate?

Step 4: Ask about your top competitors by name. Compare the depth and accuracy of information AI has about them versus you.

The gaps you find are your optimization targets. If ChatGPT knows your competitor's hours, reviews, and services but does not know yours, the fix is making your data as complete as theirs in the same sources.

SurfaceLocal's free audit automates this comparison by checking your data across the sources AI actually uses. See why AI can't find your business (/blog/why-ai-cant-find-your-business).

How Do You Fix Your AI Visibility to Compete?

Closing the gap with competitors follows a specific priority order.

Priority 1: Claim and complete your Foursquare listing at business.foursquare.com. This is the single highest-impact action for ChatGPT visibility. Fill every field: name, address, phone, categories, hours, photos, and description.

Priority 2: Claim and optimize your Yelp business page. Add photos, respond to reviews, and ensure your business information matches your Foursquare listing exactly.

Priority 3: Fix NAP inconsistencies. Audit your business name, address, and phone number across all directories and your website. Make them match exactly.

Priority 4: Add LocalBusiness schema markup to your website. Include all recommended properties: name, address, phone, hours, geo coordinates, and sameAs links to your directory profiles.

Priority 5: Focus on reviews. Encourage satisfied customers to leave reviews on Yelp and Google. AI systems treat review volume and sentiment as quality indicators.

Most businesses can complete these steps within a few weeks and see improved AI visibility within one to two months as data sources update.

For a comprehensive optimization guide, see how to improve AI visibility for local businesses (/blog/ai-visibility-local-businesses).