Yelp just launched their AI answering service for small businesses, and it’s getting attention for good reason. This AI can answer your phone when you can’t, handle common questions, and even book appointments. Based on their demo, it sounds realistic with minimal delay and actually looks pretty useful.
The system only kicks in when calls would normally go to voicemail, and if it can’t handle a request, it schedules a callback with a real person. While many business owners and customers still prefer human interaction, the reality is our tolerance for unanswered calls is dropping fast. Here’s what you need to know about this technology and whether your business should consider it.
How Yelp’s AI Answering Service Works
Yelp’s AI answering service uses OpenAI’s real-time API combined with Yelp’s knowledge graph to create what essentially acts as a 24/7 virtual receptionist. The system taps into your existing Yelp business data – custom greetings, pronunciation guides, menu information, and call-forwarding rules.
The AI can engage in back-and-forth conversations, ask follow-up questions, and perform specific tasks like:
- Answering frequently asked questions about your business
- Booking reservations or appointments
- Adding customers to waitlists
- Filtering out spam calls
- Providing basic business information
After each call, you receive a transcript, recording, and summary of what was discussed. The setup requires minimal technical work since it uses data already in your Yelp listing.
When the AI Answers vs. When Humans Do
The AI doesn’t replace your receptionist during normal business hours. It’s designed as an “always-on answering system” that picks up when no human is available – essentially acting as a 24/7 backup.
According to Yelp, the goal is ensuring businesses “never have to miss a call again.” If your staff is available, they can take the call first. The AI only engages when people would otherwise reach voicemail.
This approach addresses a real problem – small businesses miss 40-60% of incoming calls, and many of those missed calls represent lost revenue.
What Happens When AI Can’t Help
Good AI answering services are built to escalate complex requests to humans. Yelp’s system will “hand the conversation off to a human” when it encounters something it can’t handle.
In practice, this means the caller gets transferred to an available staff member or directed to voicemail. The AI captures the caller’s details so a real employee can follow up later. Services like Goodcall allow you to configure what happens next – automatic transfers, message-taking, or scheduled callbacks.
The key is that callers aren’t left hanging. They get a notification that a human will get back to them, and you get the information needed to follow up.
Why Customer Attitudes Are Changing
Many business owners worry that customers hate talking to robots. That’s partially true, but the bigger picture is more nuanced.
Research shows that 90% of customers now expect an immediate response when they call a business. Meanwhile, 61% of consumers say they’d rather get a fast reply from an AI than wait on hold for a human.
The frustration with long hold times is real – over 90% of callers report annoyance at long waits or having to call repeatedly. In that context, an AI that picks up immediately often improves satisfaction rather than hurting it.
Early adopters report surprisingly positive results. One AI answering service found that “human-like voices and fast response times” led to interaction rates as high as 97% when the AI greeted return callers by name.
As AI becomes more common in voice assistants, chat systems, and cars, people are getting comfortable with the technology – especially when it means no more frustrating dropped calls or endless hold music.
Benefits of AI Phone Assistants for Small Businesses
Never Miss Another Call
AI systems work 24/7, so you capture leads that would otherwise be lost to voicemail. 83% of customers expect immediate support, and missing calls often means missing sales.
Handle Multiple Calls Simultaneously
Unlike human receptionists, AI can talk to many callers at once. You don’t pay overtime or hire extra staff during busy periods.
Free Up Your Team
While the AI handles routine questions and bookings, your staff can focus on in-person customers and complex issues.
Automated Lead Capture
AI systems can “qualify” callers and sync their information directly to your calendar or CRM automatically. This creates a seamless process from initial call to scheduled appointment.
Analytics and Insights
You get detailed transcripts and analytics from every call, helping you understand what customers are asking for and how to improve your service.
Limitations of AI Answering Services
Complex Requests Are Challenging
AI handles common queries well but struggles with complex requests. Unusual problems or nuanced questions may require manual follow-up.
Limited Empathy and Judgment
AI can’t truly comfort upset customers or make subtle judgment calls like skilled human representatives can.
Some Customers Still Prefer Humans
Research shows 80% of people would rather wait a short time for a live agent than interact with AI. This is especially true for older or traditional customers.
Learning Curve Required
The AI needs to be “taught” your business details – menu names, service types, appointment processes – to sound natural and provide accurate information.
Risk of Poor Implementation
If the AI’s voice sounds too robotic or the system misroutes calls, you risk annoying customers. Research shows 85% will hang up on a poorly designed system.
Should Your Business Adopt AI Answering Now?
The benefits often outweigh the downsides for small businesses that frequently miss calls or want to free up staff time. An AI phone assistant acts like a 24/7 virtual receptionist – it captures leads and handles routine tasks while humans deal with complex issues.
Here’s the reality: our tolerance for unanswered calls and long hold times is dropping fast. Don’t let your business be one of the last that requires customers to wait. Even if you’re not ready to implement AI answering today, start researching this technology now.
The businesses that adapt early will have a competitive advantage. While your competitors are missing calls or making customers wait on hold, you’ll be capturing every lead and providing immediate responses.
For businesses losing customers to unanswered calls or spending too much staff time on routine phone tasks, AI answering systems represent a powerful solution – as long as you’re ready to monitor performance and step in personally when calls truly need a human touch.
At TJ Digital, we help small businesses stay ahead of technological changes that can drive more leads. If you’re interested in learning how AI optimization can help your business show up where customers are searching, schedule a free digital marketing audit to see what opportunities you might be missing.