AI Receptionists Replace IVR as Small Businesses Transform Customer Service

AI Receptionist IVR Takes Flight with Customer Service

AI agents that answer business phones and efficiently route or even resolve customer service calls are becoming a practical reality. Small businesses, with simpler IT setups than large enterprises, are leading the shift from traditional interactive voice response (IVR) systems to AI-powered receptionists.

Previously, businesses faced a tough choice: hire costly administrative staff to answer phones or force customers to navigate frustrating IVR menus that often failed to connect them with the right help. AI agents improve call routing and reduce these issues, as demonstrated by Jay-Hill Repairs, a New Jersey commercial kitchen service company with 50 employees, which recently replaced its IVR with an AI receptionist.

Why Small Businesses Are Moving Fast

Small businesses are more agile when adopting AI agents. They don’t have massive contact centers or complex IT ecosystems that could be disrupted by replacing an IVR system. RingCentral, a major contact center provider, reports over 3,000 customers have launched its AI Receptionist since its release in June 2025.

Businesses with high call volumes—car dealerships, salons, medical offices, and insurance providers—are among the early adopters. Many companies are eager to apply AI somewhere in customer service, even if they’re still figuring out the best use cases.

Case Study: Keeping Commercial Kitchens Running Smoothly

Jay-Hill services commercial kitchen equipment such as ovens, fryers, and refrigerators, often receiving calls during peak meal hours when machines break down. By integrating RingCentral's AI Receptionist with their website content and pricing data, they’ve significantly cut down on non-urgent calls, allowing staff to focus on urgent repair requests.

The AI agent improves call routing accuracy, sending calls to the right technician or billing staff and integrating with their ERP and CRM systems. After testing the AI during busy meal times, Jay-Hill saw a 5% reduction in live call volume.

Initially, there was concern customers might react poorly to an AI answering urgent calls. However, the negative reactions were fewer than expected. Encouraged by this, Jay-Hill is now moving toward AI-assisted dispatching, where the system automatically schedules repair trucks equipped with the correct parts and sends customers real-time text updates—especially helpful in noisy kitchen environments.

Private Security Company Sees Major Call Reduction

Nashville-based Music City Protection, a security services company with about 40 employees, adopted AI Receptionist instead of hiring new staff. Before, only two people handled phones, with many calls seeking basic info like service options or security training requirements.

After training the AI and refining their processes, call volume dropped by 60%. The AI now filters general inquiries, routing business-critical calls—such as service sign-ups or job applications—to staff. Large quote requests are also directed to a human to ensure personalized service.

The company automated responses for training-related questions and regularly reviews call logs to prevent missing potential leads. During the trial phase, employees and management frequently tested the AI to ensure it handled queries effectively.

Benefits and Future Outlook

• Improved customer satisfaction with faster answer and hold times compared to traditional IVR
• 24/7 availability without extra staff costs
• More accurate call routing reduces wasted time for customers and employees
• Detailed call analytics from transcribed conversations help identify unresolved issues and improve AI responses
• Data insights support workforce management and inform marketing strategies

AI agents like RingCentral's AI Receptionist allow businesses to monitor which calls are resolved and which require human intervention. This ongoing feedback loop helps improve both customer experience and operational efficiency. Marketers have also started using conversational insights to better understand customer needs and shape campaigns.

For customer support professionals eager to explore AI tools that optimize phone interactions, training resources are available at Complete AI Training. These courses cover automation and AI applications to help support teams adapt and thrive with new technologies.