Yelp Launches AI-Powered Chatbot to Enhance Business Connections
Today, Yelp introduced a new AI-powered chatbot designed to help consumers effortlessly connect with relevant businesses for their projects. This move places Yelp among a growing number of organizations embracing AI chatbots as an innovative support tool.
The AI assistant is being rolled out on the Yelp iOS app under the “Projects” tab, with plans for an Android launch later this year. According to Yelp, the chatbot utilizes OpenAI’s large language models (LLMs) alongside its own extensive data to ask users targeted questions about their needs and guide them to suitable professionals.
Rather than relying on a traditional search box, users can simply describe their issues directly within the chat interface. The bot engages by asking follow-up questions to gather additional details, including the user's zip code, to create a tailored project plan. Users will receive messages from professionals interested in their projects, which they can respond to with personalized replies or quick responses via the app.
In addition, Yelp is rolling out a new “Project Ideas” section to inspire users to initiate projects that might require service searches through the platform. Current suggestions include home maintenance, new lighting installations, and outdoor upgrades. Later this summer, Yelp plans to enhance this feature with personalized recommendations and checklists.
“AI enables us to revolutionize how people discover and connect with local businesses,” stated Craig Saldanha, Yelp’s Chief Product Officer. “Yelp Assistant is a game-changer for hiring service providers, reducing barriers for consumers in finding the right professional while offering providers the insights they need to secure jobs,” he added.
The company is currently focusing on exploring the utilization of AI chatbots for service discovery rather than restaurant searches. Akhil Kuduvalli Ramesh, SVP of product at Yelp, mentioned in an email, “We’re looking into how this natural language search could be more effectively implemented on our platform in the future to address consumer needs, including for restaurants and services.”
Later this year, Yelp plans to introduce AI-generated video compilations using user-submitted photos, videos, and details.
In addition to enhancing consumer experience, Yelp is launching an API that allows other websites to integrate an AI-powered business discovery chatbot. Visitors to these third-party sites can ask for recommendations, such as “Find a vegan brunch spot open this Saturday at 9 a.m.” or “Recommend a great workout studio in Miami with a pool.” The bot will offer relevant options, complete with Yelp ratings, price ranges, review highlights, photos, and AI-generated business summaries.
Businesses can access the new Fusion API for 30 days to test its features. The API currently supports single-turn queries, while multi-turn chat capabilities are expected later this year. With the introduction of this conversational chatbot, Yelp enhances its existing Fusion API, which has previously supported major companies like Amazon and Apple.
Revamping Restaurant Management Tools
In addition to its consumer enhancements, Yelp is modernizing its Guest Manager platform for over 11,000 restaurants. The revamped design enables restaurant operators to better manage staff by visualizing cover flow, monitoring real-time table status, and adding notes for shift managers.
For diner convenience, Yelp is also providing waitlist updates with more accurate waiting times and text notifications about place-in-line status. Soon, the platform will even suggest dishes to users via text before they are seated.
Yelp is also updating the design of the Yelp Kiosk to streamline the check-in process for users joining the waitlist.
In 2023, Yelp reported a net revenue of $1.34 billion, reflecting a 12% year-on-year growth. This comes on the heels of a $3 million decline in 2022, with the company experiencing a remarkable 173% increase in net income, reaching $99 million. Although Yelp stock has gained over 35% in value year-on-year, it has seen a drop of approximately 12% year-to-date.
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