OpenTable Leverages AI to Track Dining Habits, Raising Privacy Concerns

OpenTable has implemented AI to analyze customer dining behavior, providing restaurants with insights into preferred dishes, spending levels, and behavior patterns. The platform integrates with POS platforms to gather data on arrival times, order details, and bill totals, which are then used to generate AI summaries of non-identifiable guest data. While this aims to enhance the dining experience by personalizing service, it has raised questions about privacy, particularly as users can opt out of data sharing through OpenTable’s privacy settings. The platform emphasizes that data is anonymized and not linked to personal profiles, but concerns persist about the extent of data collection and its implications for customer privacy.

These insights surfaced after Kat Menter, a host at a Michelin-starred restaurant who posts about food under the name Eating Out Austin, spotted the new ‘AI-assisted’ tags at work. She shared a look at the system in a TikTok video that quickly caught attention. Media outlets then confirmed the test with additional restaurants. Restaurant staff have long tracked guest preferences, noting favorite dishes or preferred seating, but OpenTable’s AI aims to streamline this process by automating data collection and analysis. However, the system’s accuracy is questioned, as Menter noted that a single business dinner could mark someone as a high spender, and eating with friends who order cocktails might label a person as a cocktail lover.

OpenTable argues that the AI does not process personal guest data but instead handles large, anonymized datasets to improve categorization, such as consistently labeling ‘glass of cabernet’ as ‘red wine.’ The platform claims these insights help staff suggest dishes or set a relaxed pace, and they are guided by users’ privacy settings. OpenTable’s representative stated that the insights come from a mix of sources, including partnerships with restaurant and POS systems, and are limited to non-confidential information. Users are cautioned that their data may follow them to other restaurants if they use OpenTable Pro for bookings, emphasizing the importance of reviewing and adjusting privacy settings to maintain control over their information.

The introduction of AI-assisted tags has sparked discussions about data ethics and customer consent in the restaurant industry. While the technology offers potential benefits for personalization and improved service, it also raises alarms about privacy and the potential for data misuse. OpenTable encourages users to opt out of data sharing by disabling the ‘Point of sale information’ setting, which would prevent order history from contributing to future insights. Despite these measures, the issue highlights the growing trend of leveraging technology to track consumer behavior, prompting users to remain vigilant about their digital footprints.