An entity, in search terms, is a distinct thing such as an organisation, person or place that can be told apart from others with similar names. For a business, entity understanding is whether a system can work out who you are, what you do and how you relate to your topic. Google's Organization structured data documentation addresses part of this: adding the markup to your home page can help Google better understand your organisation's administrative details and disambiguate it in search results, and some properties can influence which logo appears in results and in your knowledge panel. It also advises using the same name and alternate name that you use for your site name. The page lists properties such as alternate name, legal name and contact point, and says there are no required properties: you add the recommended ones that apply to your organisation.
What is not documented is how ChatGPT, Perplexity or Gemini build their picture of a brand, or whether they read this markup. Google's AI features guide does not present entity work as a special AI tactic either; it points back to the ordinary foundations. So entity work is best seen as removing ambiguity: the same name, description and facts, stated clearly and in the same way wherever your brand appears.
Cultured Digital covers entity and brand understanding in this part of AI & Search Visibility. Entity understanding is also part of our structured data and entities work in technical SEO, and topic and entity strategy is covered under Shape the site.