The AI In Quick Service Restaurants Market is being driven by Imperative to mitigate labor shortages and rising operational costs
The AI In Quick Service Restaurants Market is expected to grow at a CAGR of 24.9% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 6836.3 million. The global AI market in quick service restaurants is witnessing a notable trend with the integration of generative artificial intelligence (AI) into customer-facing applications, specifically for conversational commerce. This represents a significant advancement from earlier chatbot and voice assistant technologies, which were limited by pre-programmed scripts and basic command recognition. In contrast, generative AI models can comprehend context, decipher nuanced human language, and produce natural, real-time responses. This capability is revolutionizing the customer ordering experience, particularly in the high-volume drive-thru channel. By implementing these sophisticated AI agents, QSRs can offer a more engaging and efficient interaction that closely resembles a conversation with an exceptionally proficient human employee.
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The market is segmented based on
According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows:
However, the market also witnesses some limitations, which are as follows:
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Market Scope |
|
Report Coverage |
Details |
Page number |
244 |
Base year |
2024 |
Historic period |
2019-2023 |
Forecast period |
2025-2029 |
Growth momentum & CAGR |
Accelerate at a CAGR of 24.9% |
Market growth 2025-2029 |
USD 6836.3 million |
Market structure |
fragmentation |
YoY growth 2024-2025(%) |
22.7 |
Key countries |
US, Germany, Canada, China, Japan, India, UK, South Korea, Brazil, and Australia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Find out which segment is leading the market by accessing the free PDF report
In the AI-driven Quick Service Restaurant (QSR) market, robotics process automation, computer vision applications, and natural language processing are key technologies. Machine learning models and deep learning algorithms power predictive analytics engines, while data mining techniques enhance operations. Cloud-based infrastructure, API integrations, and facial recognition technology streamline customer experience. Smart kitchen technology, automated ordering systems, and smart POS systems optimize workflows. Digital menu boards, online ordering platforms, and loyalty program management boost sales. CRM, sales performance tracking, and restaurant operations platforms improve customer engagement. Mobile ordering apps, contactless payment systems, table service optimization, delivery route planning, staff communication tools, and inventory tracking systems further enhance efficiency.
In the rapidly evolving quick service restaurant (QSR) industry, artificial intelligence (AI) is becoming a game-changer. The application software market, a segment of the larger IT software industry, is witnessing significant growth due to the adoption of AI solutions. Order accuracy improvement through AI-powered kitchen display systems, customer service enhancement via chatbots, and predictive demand forecasting are some key areas where AI is making an impact. These advanced technologies enable QSRs to streamline operations, improve customer satisfaction, and optimize inventory management. Technavio's market analysis calculates the global application software market size based on the combined revenue generated by companies offering specialized software solutions for the business sector, including cloud-based AI applications for the QSR industry.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
Technavio Research
Jesse Maida
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