Cultural Encoding in Large Language Models: The Existence Gap in AI-Mediated Brand Discovery
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arXiv
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| Format: | Preprint |
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2025
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| _version_ | 1866909980153610240 |
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| author | Junyao, Huang Ruimin, Situ Renqin, Ye |
| author_facet | Junyao, Huang Ruimin, Situ Renqin, Ye |
| contents | As artificial intelligence systems increasingly mediate consumer information discovery,
brands face algorithmic invisibility. This study investigates Cultural Encoding in Large
Language Models (LLMs) -- systematic differences in brand recommendations arising from
training data composition. Analyzing 1,909 pure-English queries across 6 LLMs (GPT-4o,
Claude, Gemini, Qwen3, DeepSeek, Doubao) and 30 brands, we find Chinese LLMs exhibit 30.6
percentage points higher brand mention rates than International LLMs (88.9% vs. 58.3%,
p<.001). This disparity persists in identical English queries, indicating training data
geography -- not language -- drives the effect. We introduce the Existence Gap: brands
absent from LLM training corpora lack "existence" in AI responses regardless of quality.
Through a case study of Zhizibianjie (OmniEdge), a collaboration platform with 65.6%
mention rate in Chinese LLMs but 0% in International models (p<.001), we demonstrate how
Linguistic Boundary Barriers create invisible market entry obstacles. Theoretically, we
contribute the Data Moat Framework, conceptualizing AI-visible content as a VRIN strategic
resource. We operationalize Algorithmic Omnipresence -- comprehensive brand visibility
across LLM knowledge bases -- as the strategic objective for Generative Engine Optimization
(GEO). Managerially, we provide an 18-month roadmap for brands to build Data Moats
through semantic coverage, technical depth, and cultural localization. Our findings reveal
that in AI-mediated markets, the limits of a brand's "Data Boundaries" define the limits
of its "Market Frontiers." |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2601_00869 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | Cultural Encoding in Large Language Models: The Existence Gap in AI-Mediated Brand Discovery Junyao, Huang Ruimin, Situ Renqin, Ye Artificial Intelligence I.2.7; H.3.3; K.4.1 As artificial intelligence systems increasingly mediate consumer information discovery, brands face algorithmic invisibility. This study investigates Cultural Encoding in Large Language Models (LLMs) -- systematic differences in brand recommendations arising from training data composition. Analyzing 1,909 pure-English queries across 6 LLMs (GPT-4o, Claude, Gemini, Qwen3, DeepSeek, Doubao) and 30 brands, we find Chinese LLMs exhibit 30.6 percentage points higher brand mention rates than International LLMs (88.9% vs. 58.3%, p<.001). This disparity persists in identical English queries, indicating training data geography -- not language -- drives the effect. We introduce the Existence Gap: brands absent from LLM training corpora lack "existence" in AI responses regardless of quality. Through a case study of Zhizibianjie (OmniEdge), a collaboration platform with 65.6% mention rate in Chinese LLMs but 0% in International models (p<.001), we demonstrate how Linguistic Boundary Barriers create invisible market entry obstacles. Theoretically, we contribute the Data Moat Framework, conceptualizing AI-visible content as a VRIN strategic resource. We operationalize Algorithmic Omnipresence -- comprehensive brand visibility across LLM knowledge bases -- as the strategic objective for Generative Engine Optimization (GEO). Managerially, we provide an 18-month roadmap for brands to build Data Moats through semantic coverage, technical depth, and cultural localization. Our findings reveal that in AI-mediated markets, the limits of a brand's "Data Boundaries" define the limits of its "Market Frontiers." |
| title | Cultural Encoding in Large Language Models: The Existence Gap in AI-Mediated Brand Discovery |
| topic | Artificial Intelligence I.2.7; H.3.3; K.4.1 |
| url | https://arxiv.org/abs/2601.00869 |