The Hidden Algorithm That Decides Which Software AI Will Recommend | Tim Sanders, G2

Most companies investing in AI visibility are optimizing for the wrong thing. Being cited by an AI response and being recommended by an AI response are completely different outcomes, with click-through rates that differ by a factor of 70. Tim Sanders, Chief Innovation Officer of G2 and executive fellow at Harvard's AI Institute, joins Craig Smith to explain the hidden mechanics behind how ChatGPT and Gemini actually decide which software to recommend, and why the answer has almost nothing to do with what's on your website. When a user asks a commercial intent question, both models enter a "validation layer" process that specifically down-weights vendor content and seeks verified third-party signals: appearance on authoritative lists (41% of the recommendation weight), awards and accreditation (18%), and online reviews (16%). None of these can be manufactured. They must be earned. The conversation covers the structural transformation in how B2B software buyers behave, half now start their search with an AI prompt, up from 29% a year ago, with two-thirds projected within a year, and why most companies' organic search traffic is on a structural path toward zero. Sanders also delivers some of the most specific competitive data on AI model usage available anywhere: ChatGPT does live retrieval 100% of the time on research queries; Claude does it less than 40% of the time. ChatGPT and Gemini account for 81% of G2's AI research citations. And more than one in four enterprise employees bypass corporate AI tools entirely, using their personal ChatGPT because it has their memory and none of the guardrails. The episode closes with Sanders' most forward-looking prediction: within three years, AI agents will write the prompts, locate the software, and purchase it on behalf of businesses - with minimal human checkpoints - making the trust infrastructure G2 has built over more than a decade the most valuable asset in the AI-driven buying cycle. Subscribe to Eye on A.I. for weekly conversations with the people building and deploying the future of AI.