By Leah Mila – July 16, 2024
In a move that signals the expanding role of artificial intelligence in the restaurant industry, ConverseNow, a technology solutions provider specializing in voice AI solutions for restaurants, has acquired Valyant AI, a provider of drive-thru automation technology. The acquisition aims to combine the strengths of both companies to accelerate the adoption of AI-driven solutions in the quick service restaurant (QSR) sector.
Founded in 2018, Valyant AI has been focused on developing and deploying voice AI technology specifically for drive-thru environments. The company's flagship product, the AI voice assistant Holly, integrates with existing drive-thru communication systems from major manufacturers such as PAR and HME. Additionally, Holly works with a variety of POS systems, including Brink, Xenial, NCR, Aloha, and Oracle Microsystems. The focus on integrating with existing infrastructure highlights Valyant AI's approach to providing ready-to-deploy solutions for QSR brands. The company has signed deals with well-known brands such as CKE and Checkers, demonstrating market acceptance of its technology.
ConverseNow aims to integrate Valyant AI's technology and team into its operations, leveraging its existing voice AI solutions portfolio. Both companies share a common goal of making AI solutions available to a broader range of restaurants, regardless of size or existing technology infrastructure. This shared vision, along with complementary technology capabilities, is the foundation of the acquisition.
“Our goal is to make AI a widespread tool used by restaurants of all sizes to improve operational efficiency and customer experience across all ordering channels,” Vinay Shukla, co-founder and CEO of ConverseNow, said in the company's press release. He further highlighted the strategic fit of the acquisition, saying, “Valyant AI's expertise in drive-thru automation will complement our existing voice AI capabilities, allowing us to offer a more comprehensive suite of solutions to the QSR market.”
Rahul Agarwal, co-founder, COO and CPO of ConverseNow, which closed a $10 million funding round in August 2022, highlighted the technology synergies, saying, “Valyant's patented technology and unique hardware, combined with its seamless POS integration capabilities, aligns well with ConverseNow's existing AI tech stack. We believe this will enable us to develop even more robust and scalable solutions for the industry.”
ConverseNow's AI-powered virtual ordering assistants are designed to have natural conversations with customers, understanding their intent and guiding them through the ordering process. These assistants leverage conversational AI to interpret conversational nuances, predict ordering patterns, and suggest upsells based on real-time data analysis. The company's cloud-based platform supports multiple languages and caters to a variety of high-volume ordering channels, including phone orders, drive-thru interactions, self-service kiosks, and voice-assisted chat on mobile devices.
With this acquisition, ConverseNow gains another tech asset: an AI employee assistance product. Powered by generative AI, the voice-activated tool allows restaurant staff to get instant answers to work-related questions. Already piloted by Valyant AI, the solution is designed for both fixed and drive-thru environments and is expected to be rolled out more broadly by the end of the quarter.
For the time being, both companies will continue to operate under their respective brands to ensure continuity of service to existing customers. This approach will allow both companies to integrate their technologies while leveraging each other's resources and expertise.
Despite the optimism expressed by both companies, widespread adoption of AI in drive-thrus is still evolving. While some brands have reported success with AI-powered drive-thru systems, others, such as McDonald's, recently ended trials with AI vendors, opting to explore alternative solutions. Similarly, Presto Automation, another player in the AI drive-thru market, has faced harsh criticism for its reliance on human agents to support its AI systems.
The acquisition of ConverseNow and Valyant AI represents an important consolidation of resources and expertise toward enabling AI-enabled restaurants, however, the long-term viability and effectiveness of these technologies in real-world QSR environments remains to be fully evaluated as they mature and industry adoption patterns become clear.
