AI is our friend, not a threat: Zomato’s Deepinder Goyal on why chatbots won’t disrupt food delivery

Deepinder Goyal, the founder of Zomato's parent company Eternal, has addressed the growing concerns surrounding artificial intelligence (AI) potentially disrupting consumer internet businesses. He asserts that AI serves as an enabler rather than a threat, particularly for platforms like Zomato. In his recent letter to shareholders, Goyal dismissed the notion that AI-driven interfaces might replace applications as the main point of entry for commerce. He referenced historical attempts by major platforms to change consumer behavior, noting their failures to significantly alter established habits. "Some individuals speculate that AI chat interfaces might become the new gateway for commerce, diverting demand from applications like ours," Goyal explained. He drew comparisons to Google's decade-long endeavor to integrate transactions into its platform, emphasizing that traditional sites like Booking.com, Expedia, and Amazon continue to thrive. Goyal highlighted that the complexity of consumer transactions is a significant factor in this discussion. He pointed out that while general-purpose interfaces can handle basic queries, they struggle with intricate, high-frequency, and habitual transactions. Ordering food, he argued, involves multiple steps—such as discovery, comparison, and tracking—where specialized apps maintain a competitive advantage. Furthermore, he emphasized the challenge of changing consumer habits, stating, "Consumer behavior is the hardest thing in the world to change." Regular users, he noted, are unlikely to shift their established routines to a chat interface. Instead of perceiving AI as a rival, Goyal characterized it as a valuable asset for enhancing Zomato's operations. He mentioned the ongoing use of AI in various aspects of the business, including demand forecasting, logistics, fraud prevention, and improving customer experiences. Goyal also pointed out that the true potential of AI lies not in cost reduction, but in market expansion. He posed the critical question: "How does AI help us expand the market?" He believes that AI can lower barriers for various participants in the ecosystem—from customers and delivery partners to restaurants and small businesses—by simplifying processes like discovery and onboarding. Concluding his thoughts, Goyal reassured stakeholders that there is no cause for alarm regarding AI's impact, while acknowledging that Zomato will keep a close watch on advancements in 'agentic commerce' to adapt as necessary.