Zomato Bans AI-Generated Food Images After Rise In Complaints, Refunds

Zomato has decided to crackdown on AI-generated food images after receiving multiple customer complaints, CEO Deepinder Goyal said on Sunday, via a post on social media platform X, formerly known as Twitter.

"One place where we strongly discourage the use of AI is images for dishes in restaurant menus. AI-generated food/dish images are misleading, and we have received numerous customer complaints on this issue," Goyal's post read.

Starting August-end, Zomato will actively start removing AI-generated images from menus and stop accepting such fresh image uploads.

However, the Zomato chief, also mentioned in his post that the delivery player does use various forms of AI to make its workflows efficient.

Explaining the decision, Goyal further said, "Customers say that this leads to breach of trust, and it leads to higher complaints & refunds, and also, lower ratings."

The delivery platform has also said that the ban also applies to our marketing team and they have been instructed to not use AI-generated images for marketing purposes hereon.

The Zomato share price is up 20% in the past month and 68% in the past six. Of the 28 analysts tracking the company, 25 maintain a 'buy' rating and three suggest a 'sell', according to Bloomberg data.