The race to capture a slice of the restaurant AI pie has begun.
This week alone, two startups specializing in voice AI — Vox AI and Loman AI — have announced funding rounds to support their growth.
Recent Funding Announcements
Vox, specializing in AI for drive-thru operations, raised $8.7 million in a seed round led by Headline. The company is based in Amsterdam but is expanding globally, with plans to open an office in San Francisco.
Loman, based in Austin, raised $3.5 million in a seed round led by Next Coast Ventures. The startup offers an automated phone system capable of answering questions and taking orders.
A third startup, Audivi AI, also completed a seed round this week, although it has not disclosed the amount.
A Growing Market
These are just the latest names on a growing list of companies that want to use artificial intelligence to help restaurants automate drive-thrus and phone lines, operating more efficiently.
Technology adoption is still in its early stages, but it's accelerating. Major fast-food chains like Taco Bell and Wendy's are implementing AI for drive-thru at hundreds of locations. Smaller brands like Bojangles, White Castle, and Taco John's are extending it to an increasing number of locations.
Probably even more restaurants are using AI on the phone to automate orders, manage reservations, and answer customer questions.
Market Evolution
Until recently, the market was dominated by a handful of mature operators, such as Presto, Hi Auto, ConverseNow, and SoundHound, as well as tech giants like Google and IBM.
But over the past two years, new providers have begun to emerge as demand grows and barriers to entry decrease thanks to advances in large language models.
Vox was founded in 2023, while Loman is just over a year old. Other new players like Incept AI, Palona AI, Maple, and Revmo.ai were all born from 2023 onwards.
Differentiation Strategies
In many cases, these new entrants believe they can improve existing solutions. Incept, for example, has focused on improving audio quality, while Vox's technology is fluent in more than 90 languages. Palona has worked on AI personalization, with agents that can be adapted to a restaurant's branding and personality.
Companies claim they can help restaurants reduce labor costs while simultaneously increasing revenue thanks to more consistent upselling capabilities.
Challenges and Concerns
However, doubts remain about AI's ability to handle orders accurately without human help, especially when implemented on a large scale.
Some systems, for example, are still monitored by remote operators who can intervene in case of problems.
Embarrassing errors also occur. For instance, McDonald's recently had to discontinue the use of its AI voice ordering system in drive-thrus after videos and reports from frustrated customers about wrong orders went viral, leading the chain to review the technology and shut it down in over 100 locations in the United States.
The Future of Voice Automation
Despite this, some see voice automation as inevitable, especially as AI improves, as it's designed to do.
The market is clearly heating up, and with lower barriers to entry and growing demand, we can expect to see even more innovation and competition in this space in the coming months.