(Bloomberg) -- SoundHound AI is scaling its voice AI technology across more than 2,600 Casey’s locations, a move that validates large-scale AI adoption in the retail sector and challenges an industry trend where most automation pilots fail to launch. The expansion comes after the system has already managed over 21 million customer interactions for the third-largest U.S. convenience retailer.
“Expanding our partnership with SoundHound AI allows us to scale a proven solution that improves the guest ordering experience and helps our team members operate more efficiently across thousands of locations,” said Sanjeev Satturu, SVP, Chief Information Officer at Casey’s.
The deal provides a significant real-world proof point for SoundHound's AI, which has now processed millions of food orders for Casey's, the fifth-largest pizza chain in the U.S. The AI agents are designed to handle incoming calls for pizza orders, especially during peak times, reducing the workload on staff and ensuring more orders are captured accurately and sent directly to the kitchen.
For investors, this partnership demonstrates a tangible return on AI investment and a successful transition from a contained pilot to an enterprise-wide platform. This achievement places Casey's in the top 8% of companies that have successfully scaled strategic AI initiatives, a stark contrast to the 92% of firms stuck in what Accenture research calls the "pilot trap." The move reinforces the investment narrative for SoundHound AI (Nasdaq: SOUN) by showcasing its technology's reliability and scalability.
The challenge of scaling AI from isolated tests to full-scale enterprise deployment is a major hurdle for most organizations. Accenture’s research highlights that while 63% of executives plan to increase AI spending, very few manage to implement it broadly. Casey's expansion with SoundHound AI serves as a counter-example, demonstrating a clear path from a successful pilot to a system-wide rollout that delivers measurable operational benefits. By automating order-taking, Casey's team members can focus on preparing food and serving in-store guests, directly addressing labor efficiency and customer service.
SoundHound’s technology is trained on Casey’s specific menu and is built to understand natural, conversational language. Beyond taking pizza orders, the AI can answer common questions about menu items and active promotions, functioning as a digital team member. This capability is crucial for handling high call volumes during meal rushes, which often lead to long hold times or missed orders for retailers.
The broader market for automated and intelligent systems in retail and logistics is experiencing significant growth, underscoring the demand for technologies that improve efficiency and provide real-time data. For instance, the related market for RFID tags, used for inventory management and supply chain visibility, is projected to grow from $5.9 billion in 2022 to $15.0 billion by 2032, according to Allied Market Research. This trend highlights the enterprise appetite for technology solutions like SoundHound's that streamline complex, high-volume operations.
This article is for informational purposes only and does not constitute investment advice.
