How AI Engines Actually Work

The Hidden Algorithm: How ChatGPT Decides Which Websites to Cite

AI engines don't work like Google. They don't care about your domain authority or backlink count. Here's what they actually look for—and why it changes everything about content optimization.

From Keywords to Understanding

Traditional SEO and AEO operate on fundamentally different principles.

Traditional SEO: Keyword Matching

Google's algorithm primarily looks for:

• Keyword density and placement
• Backlink quantity and quality
• Domain authority and age
• Technical SEO factors (site speed, mobile-friendliness)
• User engagement signals (click-through rate, time on site)

The focus: Matching search terms to indexed pages and ranking them by authority signals.

AEO: Semantic Comprehension

AI engines like ChatGPT, Perplexity, and Claude work differently. They:

• Read and comprehend your content like a human would
• Understand context and meaning, not just keywords
• Synthesize information from multiple sources
• Extract specific claims that answer the user's question
• Cite sources that provided clear, authoritative information

The focus: Understanding what you're actually saying and whether it reliably answers the user's question.

Why This Matters

The Citation Decision Process

When an AI engine generates a response, here's what happens behind the scenes:

Step 1: Query Analysis

The AI breaks down the user's question to understand intent, context, and what type of answer is needed.

Step 2: Source Retrieval

The AI searches for relevant sources—similar to a traditional search engine, but with semantic understanding. It retrieves 5-20 potentially relevant sources.

Step 3: Content Comprehension

Here's where it gets different. The AI reads the full content of each source, understanding:

• What claims are being made
• How authoritative those claims are
• Whether information is backed by data
• How clearly ideas are expressed
• Whether statements are self-contained and extractable

Step 4: Information Synthesis

The AI combines information from multiple sources to create a comprehensive answer, prioritizing:

• Clear, specific statements
• Data-backed claims
• Authoritative sources
• Complete, extractable sentences

Step 5: Citation Selection

The AI cites sources that:

• Directly supported key points in the answer
• Provided unique or authoritative information
• Were clear and easy to extract from
• Contained verifiable claims

Critical insight: AI engines favor content that's easy to understand, extract, and verify. Vague, fluffy content gets ignored.

What Makes Content "Citation-Worthy"?

Based on the Princeton University study and real-world testing, here are the factors that increase your chances of being cited:

1. Clarity

Information must be easy to extract and understand.

2. Authority

Content demonstrates genuine expertise, not marketing fluff.

Signals of authority:

• Specific data and statistics
• Citations to reputable sources
• Expert quotes and perspectives
• Case studies with real numbers
• Research methodology transparency

3. Completeness

Statements are self-contained—they make sense without surrounding context.

Incomplete: "It's also very fast."
Complete: "The platform processes 10,000 transactions per second."

Why this matters: AI engines extract individual sentences. If a sentence requires the previous paragraph for context, it won't be cited.

4. Credibility

Claims are backed by verifiable data, sources, and examples.

Elements of credibility:

• Statistics with sources
• Third-party validation
• Specific numbers (not ranges)
• Dates and recency
• Methodology transparency

The Princeton Study: The Science Behind AEO

What the research found

In 2024, researchers at Princeton University conducted the first comprehensive study of how generative AI engines cite sources. Published in the ACM KDD conference, the study analyzed thousands of AI-generated responses.

Key findings:

91% of citations are under 18 tokens
AI engines overwhelmingly prefer short, complete sentences (approximately 12-15 words). Longer passages require summarization, which introduces errors and reduces citation confidence.

Optimization methods boost visibility by 40%
The study tested nine different optimization strategies. The most effective methods—adding citations, quotations, and statistics—increased visibility by 30-40%.

Keyword stuffing doesn't work
Traditional SEO tactics like keyword stuffing actually decreased visibility in AI responses. AI engines penalize content that appears manipulative.

Domain-specific strategies matter
The effectiveness of optimization methods varied significantly by industry. What works for SaaS companies differs from what works for professional services.

Source: Aggarwal, P., et al. (2024). "GEO: Generative Engine Optimization." ACM SIGKDD Conference on Knowledge Discovery and Data Mining.

Real-World Examples by Industry

SaaS Company: Clear Feature Claims

Before AEO: "Our platform offers robust collaboration features."
After AEO: "Teams using our platform reduce meeting time by 40% (study of 200 companies, 2024)."

Result: Cited by ChatGPT in 15 of 20 relevant queries within 6 weeks.

Professional Services: Specific Expertise

Before AEO: "We help companies with digital transformation."
After AEO: "We've implemented AI automation for 85 Fortune 500 companies since 2022."

Result: Citation rate increased from 10% to 55% in industry-related queries.

E-commerce: Product Specifications

Before AEO: "High-quality outdoor gear for enthusiasts."
After AEO: "Our tents withstand 60mph winds and temperatures to -20°F (tested per ASTM F1934)."

Result: Now cited in technical product recommendation queries, 3.2x conversion rate.

Knowledge Check

Question 1: What's the main difference between how Google and ChatGPT evaluate content?

Answer: Google primarily uses keyword matching and link signals to rank pages. ChatGPT reads and comprehends content semantically, understanding meaning and context rather than just matching keywords. AI engines extract and synthesize information based on clarity, authority, and completeness—not backlinks.

Question 2: According to the Princeton study, what percentage of AI citations are under 18 tokens (approximately 12-15 words)?

Answer: 91%

The vast majority of AI citations are short, complete sentences under 18 tokens. This is because AI engines can extract these verbatim without risk of error or hallucination. Longer passages require summarization, which reduces citation confidence.

Question 3: Which of these is more citation-worthy?
A) "We're a leading provider of innovative solutions."
B) "We serve 2,400+ enterprise clients across 40 countries."

Answer: B

Option B is far more citation-worthy because it:

• Contains specific, verifiable numbers
• Is a complete, extractable statement
• Demonstrates scale and authority
• Avoids vague buzzwords ("leading," "innovative," "solutions")

Option A is generic marketing language that AI engines typically ignore.