The news: Toast launched an AI-based intelligence engine called ToastIQ for its point-of-sale (POS) platforms, per a press release. It uses AI to analyze historical patterns like recent sales so restaurants can better automate their workflows and personalize their offerings.

• Menu Upsells prompts staff to recommend additional items to diners’ orders.
• Digital Chits pulls guest details and visit history so servers can personalize their service.
• And Shift at a Glance streamlines communications between managers and staff.

ToastIQ also includes an AI marketing assistant to build cross-channel campaigns, and an advertising feature connects ad performance directly to transactions.

Why it matters: These features can help make Toast’s POS solution more attractive to restaurants, helping Toast keep up its momentum despite growing competition.

While Toast used to stand out for focusing on a single vertical, other major POS players have launched their own restaurant-focused offerings.

• Fiserv-owned Clover, for example, rolled out an all-in-one POS solution in November with features like real-time kitchen reporting.
• And Block-owned Square recently launched Square Kiosks, Bar Tabs, House Accounts, and item splitting.

Despite growing competition, Toast has powered through: Its gross payment volume shot up 26% YoY in 2024, and the company achieved its first year of profitability.

Our take: The rollout of ToastIQ also reflects a larger trend of payment providers investing heavily in AI to transform commerce for both customers and merchants. Last week alone, Visa, Mastercard, Affirm, and PayPal all launched agentic AI solutions.