How is AI Used in Food Delivery? 10 Key Benefits

Finding new ways to leverage AI is one of the biggest trends in the foodservice industry. As the use of artificial intelligence becomes more widespread, it’s important to take a look at how it might affect food delivery, a significant revenue source for many restaurants and other establishments.

If you’re eager to learn about the possibilities, this article will answer the question, “How is AI used in food delivery” by outlining 10 potential benefits. Once you have a better understanding of what machine learning can do, you’ll gain more insight into how this new technology will help the restaurant industry in the near future.

Personalized Recommendations

One of the most important ways AI can be used in food delivery is by giving customers personalized recommendations. For example, if a delivery app’s algorithm notices that a customer likes cheesy dishes and tends to use the app around dinnertime on weekends, it might suggest ordering a pizza at 6:00 P.M. on Saturday. Since these customized suggestions are based on past behavior, they’re more likely to result in a purchase than more general ones, making both app users and restaurant owners happy.

Location-Based Suggestions

Personalized suggestions can also include geo-targeted recommendations. For example, if an AI-driven food delivery app recognizes a user’s preference for Japanese cuisine, it can notify them when a Japanese restaurant is nearby. In addition, the app might suggest certain dishes over others after analyzing the online reviews, maximizing the chance that the customer will have a satisfying meal instead of a mediocre one.

Image Recognition

For anyone who’s ordered delivery, loved the meal, but then couldn’t remember the name, AI’s image recognition capabilities offer a solution. If a user uploads a photo of a memorable meal, the system can match it to menu descriptions and photos from restaurants in the area, helping them find the item so they can place an order. This makes it easier to rediscover past favorites and make more purchases, something both foodies and restaurateurs will appreciate.

Dynamic Pricing

As explained in a Business Insider article, software integrated with machine learning can use dynamic pricing to adjust menu prices for delivery orders based on customer demand, sometimes by as much as 40%. Although this approach may be controversial, it has the potential to double profit margins, helping to offset rising food and labor costs.

Improved Ordering

Given the time and labor needed to answer phones, AI-based ordering is a game changer in food delivery. Text chatbots and voice assistants can take multiple orders simultaneously, quickly and accurately, increasing speed and minimizing errors. This improved efficiency will boost customer satisfaction, leading to future purchases.

Virtual Customer Service

Data from artificial intelligence solution provider Loman.ai shows that 43% of restaurant phone calls go unanswered and 63% of customers put on hold hang up, revealing the ineffectiveness of phone-based customer service for delivery customers and others. Since an AI agent can answer questions, address complaints and give refunds virtually, the establishment will lose fewer customers due to lack of attention, improving the restaurant’s finances and reputation.

Efficient Operations

Another way in which artificial intelligence can improve efficiency is through AI-powered restaurant inventory management software. These programs analyze data from delivery apps to determine the most popular dishes and the most used ingredients, aiding kitchen managers in deciding how much inventory to hold. By helping restaurants avoid under or overstocking supplies, these AI programs prevent both shortages and waste that could lead to angry customers or spoiled food that affect the establishment’s bottom line.

Route Optimization

Another innovative way in which AI can be used in food delivery is by optimizing delivery routes. After the algorithm analyzes traffic patterns, speed limits and light synchronization, it can recommend the quickest route from the restaurant to the customer, ensuring that the food arrives warm and delicious ASAP. This can also assist delivery drivers in maximizing fuel efficiency and reducing wear and tear, a win-win for everyone involved in the transaction. 

Order Tracking

Integrating AI with food delivery apps can give customers the ability to track their orders, too. By streaming kitchen cameras and tracking delivery cars, users are able to follow their order from start to finish, receiving constant updates on the status in real-time. This is sure to improve confidence in food quality and delivery speed, raising customer satisfaction levels significantly.

Food Safety

Cameras and sensors integrated with delivery apps can also help ensure that food safety protocols are being followed. From live streams that reveal if staff members aren’t wearing gloves to sensors that detect when in-transit food enters the temperature danger zone, AI can assist both managers and customers in preventing foodborne illnesses that could adversely affect not only customer health but also the restaurant’s reputation.