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    ChatGPT Recommends Our Competitors to Our Prospects. We Need to Fix This Now

    Yuval Halevi
    January 2026
    8 min read

    You asked ChatGPT to recommend the best tool in your category. Your competitors showed up. You didn't. Your stomach dropped.

    This isn't a hypothetical. From my experience working with 50+ B2B SaaS companies, this is the moment that triggers urgent action. Because every prospect who asks that same question before visiting your website might never visit your website at all.

    The good news: this is fixable. The bad news: it's not fast. Let me show you exactly what's happening and how to close the gap.

    TL;DR

    • ChatGPT recommends brands it has high confidence in. Your competitors built more "entity authority."
    • This isn't about content optimization. It's about trust signals accumulated over time.
    • You can close the gap in 3-6 months with focused execution (faster for Perplexity/AI Overviews).
    • Start with diagnostics, then foundation fixes, then authority building.

    First: Understand the Damage

    Before you can fix this, you need to know how bad it is. Run the diagnostic below to quantify your competitive gap.

    Competitive Gap Diagnostic
    Test your visibility against competitors across AI platforms
    Question 1 of 3
    ChatGPT
    When you ask ChatGPT for the best tool in your category, do you appear?

    Why They Win and You Don't

    ChatGPT doesn't have favorites. It has confidence levels. When asked for recommendations, it suggests brands it's confident about based on signal density.

    Your competitor didn't "optimize for ChatGPT." They accumulated authority signals over years. PR coverage. Backlinks from respected sites. Consistent branding. Strong review presence. It all compounds into what I call "entity authority."

    Reality Check

    Your competitor's head start is real. They've been accumulating authority signals for months or years. You can close the gap, but it requires sustained effort over 3-6 months. Anyone promising faster results for ChatGPT visibility is overselling. (Perplexity and AI Overviews respond faster, in 2-8 weeks.)

    The Fix: Three-Phase Response

    You can't erase their head start overnight. But with focused execution and budget, you can close the gap faster than you think.

    Your Competitive Response Plan
    Click each phase to see the detailed playbook
    Week 1-2: Diagnose & Quick Wins
    Run 30+ test queries across ChatGPT, Perplexity, Copilot
    2 hours
    Document every query where competitors win
    1 hour
    Ask ChatGPT directly to compare you vs competitor
    30 min
    Complete entity consistency audit and fixes
    4 hours
    Implement Organization + Product schema
    2 hours
    Create and deploy llms.txt file
    1 hour
    Phase Outcome
    Clear baseline, quick wins deployed, gap quantified
    Competitive Catch-Up Tracker
    Toggle to see typical progress over 90 days
    Perplexity Citation Rate
    8%of queries cite you
    YouCompetitor: 78
    10% of competitor
    AI Overview Appearances
    0keywords
    YouCompetitor: 24
    0% of competitor
    Authority Signals
    3total signals
    YouCompetitor: 32
    9% of competitor
    ChatGPT Mentions
    0of 30 test queries
    YouCompetitor: 24
    0% of competitor
    How to baseline: Run 30 test queries across ChatGPT, Perplexity, and Google. Document every result. This creates the before/after story your board needs.

    Quick Wins: This Week

    While you're building long-term authority, capture these quick wins immediately:

    1
    Ask ChatGPT Why
    Get diagnostics directly from the source. The answer reveals exactly what you're missing.
    Diagnostic Prompt
    Compare [Your Company] vs [Competitor] for [use case]. What do you know about each? Why would you recommend one over the other? What information would change your recommendation?
    2
    Fix Entity Inconsistencies Today
    Check your company name, description, and positioning on: website, LinkedIn, G2, Capterra, Crunchbase. Make them identical. This takes 2 hours.
    3
    Create a Comparison Page
    Publish "[Your Company] vs [Competitor]" and "[Category] Comparison" pages. Be fair, be factual. Become the source ChatGPT learns from.
    4
    Add llms.txt
    Create a machine-readable company summary at yoursite.com/llms.txt. New standard, 30 minutes of work, permanent benefit.

    The Niche Flanking Strategy

    Here's a counterintuitive approach: don't try to beat them head-on for broad category queries. Flank them.

    You probably can't win "best SIEM tool" tomorrow. But you might win "best SIEM for fintech startups" in weeks.

    Niche Positioning Calculator
    Find winnable niches while you build broad authority

    Instead of competing head-on for broad category queries, identify niches where you have genuine differentiation. Win there first, then expand.

    Hard to WinWinnable NicheDifficultyTimeline
    Best SIEM toolBest SIEM for fintech startupsMedium4-6 weeks
    Best CRM softwareBest CRM for real estate teamsLow2-4 weeks
    Best project managementBest PM tool for remote dev teamsMedium4-6 weeks
    Best API securityBest API security for GraphQLLow2-4 weeks
    Best observability platformBest observability for KubernetesMedium4-8 weeks
    The strategy: Dominate 3-5 specific niches first. Build authority there. Then expand to broader categories. This is faster than competing head-on with established players.

    Build AI-Ready Infrastructure

    Beyond content and authority, your technical foundation matters. Make sure AI systems can actually find and understand you. This infrastructure stack gives AI crawlers exactly what they need:

    Most SaaS companies have a basic XML sitemap. Few have llms.txt for AI context, and even fewer have structured their content to help AI understand not just what pages exist, but why they should recommend them. This infrastructure gap is often the difference between appearing in AI responses and being invisible.

    The Bottom Line

    Your competitor has a head start. They accumulated authority signals while you focused on other things. That's not wrong, it's just a different priority.

    The gap is closeable. With budget and focused execution, you can make significant progress in 90 days. You'll see Perplexity and AI Overview wins first. ChatGPT takes longer (60-180 days).

    Start today. Every day you wait, they're accumulating more signals. The gap gets wider. Fix entity consistency this week, launch authority building this month.

    Frequently Asked Questions

    Yuval Halevi

    Yuval Halevi

    Helping SaaS companies and developer tools get cited in AI answers since before it was called "GEO." 10+ years in B2B SEO, 50+ cybersecurity and SaaS tools clients.