Do AI platforms use my GPS location for near-me queries?

It depends on the platform. ChatGPT uses approximate location from your IP address or device settings, not precise GPS. Perplexity similarly uses general location data. Google AI Overviews have access to more precise location data from Google's location services. None of the platforms use real-time GPS tracking for query responses.

Why does AI recommend businesses that aren't actually near me?

AI platforms prioritize entity confidence and review quality over strict proximity. A highly rated business with complete directory data five miles away may be recommended over a closer business with incomplete data or lower ratings. AI also defines 'near me' more broadly than traditional map-based search.

How can I optimize for 'best near me' queries on ChatGPT?

Claim and complete your Foursquare listing with accurate location data, categories, and hours. Build review volume across Yelp and Google. Add LocalBusiness schema markup with geo coordinates and service area to your website. Ensure consistent NAP data across all directories.

Does Google AI Overviews handle near-me queries differently than ChatGPT?

Yes. Google AI Overviews draw from Google's own search index and Maps data, while ChatGPT primarily uses Foursquare and Yelp. Google AI tends to weight proximity more heavily and has access to real-time business hours and busyness data. ChatGPT relies more on entity confidence and review sentiment across directories.

How often do AI platforms update their near-me recommendation data?

Each platform updates on different schedules. Perplexity crawls the web in real time. ChatGPT's Foursquare and Yelp data updates periodically but not instantly. Google AI Overviews reflect the current state of Google's continuously updated index. Changes to directory listings typically take 2 to 4 weeks to appear in AI recommendations.

How AI Answers 'Best Near Me' Queries: Sources and Signals

January 20, 2026

Near-me queries are the most common type of local search. When a user asks ChatGPT for the best coffee shop near me or asks Perplexity for a recommended dentist in their area, the AI platform must select specific businesses to recommend from thousands of options. Understanding how AI platforms make these selections is essential for any local business that wants to be recommended.

Unlike Google, which shows a ranked list and lets users choose, AI platforms make the choice for the user. They recommend one to three businesses in a conversational answer. This makes the selection process dramatically more competitive and the signals that drive selection dramatically more important. For background on the data sources AI uses, see how ChatGPT finds local businesses.

How Does ChatGPT Answer Near-Me Queries?

When a user asks ChatGPT a near-me question, the platform queries Foursquare Places for businesses matching the category and location. Foursquare provides over 70 percent of ChatGPT's local business data, including business names, addresses, categories, hours, and ratings.

ChatGPT then augments this Foursquare data with information from Yelp and Bing's web index. It cross-references the data to build an entity profile for each candidate business. Businesses with consistent data across sources, complete profiles, and strong review signals are prioritized for recommendation.

The key signals ChatGPT uses for near-me queries include proximity to the user's stated or detected location, category relevance to the query, star rating across review platforms (averaging 4.3 stars for recommended businesses), profile completeness on Foursquare, and review volume across multiple platforms.

How Does Perplexity Answer Near-Me Queries?

Perplexity takes a fundamentally different approach. Rather than relying on a single primary data source like Foursquare, Perplexity crawls the web in real time when processing a near-me query. It searches directory listings, review sites, business websites, and local media to find relevant businesses.

Perplexity prioritizes authoritative, well-structured content. Businesses with detailed service pages, LocalBusiness schema markup, and reviews across multiple platforms tend to perform well. Perplexity also prominently displays source citations, which means businesses that appear in its results can receive direct referral traffic.

Research shows that Perplexity sends 3 to 5 times more referral traffic per query than ChatGPT because of its citation-forward interface. While Perplexity has a smaller user base of 30 to 45 million monthly users compared to ChatGPT's 800 million weekly users, the traffic per recommendation is significantly higher.

How Do Google AI Overviews Handle Near-Me Queries?

Google AI Overviews appear at the top of Google search results for an increasing percentage of queries. For local near-me queries, Google AI draws from its own ecosystem: Google Business Profile data, the web index, Google reviews, and Knowledge Graph entities.

The signals that drive Google AI Overviews for local queries overlap significantly with traditional local SEO factors: Google Business Profile completeness, review volume and rating on Google, proximity to the searcher, website authority, and structured data. Businesses already investing in local SEO have an advantage for Google AI Overviews.

However, Google AI Overviews are more selective than the traditional local 3-pack. While 35.9 percent of locations appear in the local 3-pack, Google AI Overviews typically recommend fewer businesses in a more conversational format, making the selection more competitive.

How Do the Platforms Compare for Near-Me Queries?

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The data reveals that no single optimization strategy works for all platforms. ChatGPT requires Foursquare optimization. Perplexity rewards web content quality. Google AI rewards Google Business Profile completeness. The businesses that perform best across all platforms invest in the shared foundations: directory presence, review volume, structured data, and authoritative content.

What Determines Which Businesses AI Chooses for Near-Me Answers?

Across all platforms, five factors consistently determine which businesses get recommended for near-me queries. First, entity confidence: AI must be confident your business exists, is legitimate, and operates at the stated location. This confidence comes from consistent data across multiple directories.

Second, review quality acts as a gating mechanism. Businesses averaging below 4.0 stars are rarely recommended regardless of other signals. Third, proximity matters but is not absolute. AI platforms may recommend a higher-rated business slightly farther away over a closer business with weaker signals.

Fourth, structured data gives AI platforms machine-readable information to process. LocalBusiness schema markup with complete business details reduces the work AI must do to understand your business. Fifth, content authority matters especially for Perplexity, which crawls your website directly. Detailed service pages, FAQ content, and specific business information improve recommendation probability.

For a complete guide to optimizing across all these signals, see how to improve AI visibility for your local business.

Do Online Reviews Affect AI Recommendations? What the Data Shows

AI platforms cross-reference reviews from Yelp, Google, and Facebook to build business quality profiles. Learn exactly how review signals affect AI recommendations.

January 16, 2026