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AI Phone Hosts Become Increasing Part of Dining Experience

DATE POSTED:September 22, 2024

The next time you call your favorite restaurant, it may be AI that answers.

That’s according to a report Sunday (Sept. 22) by Ars Technica on the popularity of artificial intelligence (AI)-powered hosts used by eateries.

As the report noted, there are many companies specializing in the service, offering 24-hour responses to questions about things like menus, dress codes and seating arrangements, or making, changing, or canceling reservations.

While in some cases, the AI can direct customers to a human representative, Tomas Lopez-Saavedra, co-founder of AI agent provider RestoHost, told Ars Technica that’s something that only happens 10% of the time.

The report also raised the question of whether there is a market for this sort of service at a time when a quick Google search can handle these issues. Some of the founders of AI voice host companies say there are a variety of reasons diners use their service.

“Restaurants get a high volume of phone calls compared to other businesses, especially if they’re popular and take reservations,” said Alex Sambvani, CEO and co-founder of Slang, whose clients include Wolfgang Puck and Chick-fil-A

Sambvani pegged that “high volume” number at 800 to 1,000 per month at in-demand restaurants, from last-minute reservations, tourists, older customers and people carrying out errands while driving.

“The phones would ring constantly throughout service,” Matt Ho, the owner of Bodega SF, told Ars Technica. “We would receive calls for basic questions that can be found on our website.” 

His restaurant eventually went with an AI host service called Maitre-D, which he said “makes the job easier for the host and does not disturb guests while they’re enjoying their meal.”

These companies are part of a broader, and ongoing, digital transformation affecting the U.S. restaurant industry, as PYMNTS has written, with recent research showing that 67% of establishments have seen direct benefits to the diner experience from using automation.

“Specifically, more than one-third of these establishments cite payment acceptance as a key area of impact,” PYMNTS wrote earlier this year. 

“Implementing automated payment processing and digital ordering platforms not only enhances operational efficiency but also reduces cash handling, providing employees with quicker access to wages and tips. This approach significantly boosts staff retention and satisfaction in the face of ongoing labor challenges.”

More recently, PYMNTS spoke with James Roedding, head of product and data science at Rewards Network, about efforts by restaurants to use AI to update their online content, synthesize reviews, and improve analytics functions.

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The post AI Phone Hosts Become Increasing Part of Dining Experience appeared first on PYMNTS.com.