From restaurant software to an 'agent platform': Toast IQ, a conversational assistant built on POS and payments data from 180,000 locations, now ships agents (Toast IQ Grow) that do marketing work, while AI handles most support contacts.
How is Toast using AI?
Toast's AI strategy is Toast IQ, a conversational assistant built into its restaurant POS and payments platform that answers questions and executes tasks on data from about 180,000 locations; more than half of locations used it within four months of its 2025 launch and by May 2026 it had 40,000 weekly active locations. Toast IQ Grow, its first AI agent, runs marketing and is on track to be the fastest Toast product to $10 million of ARR; AI also starts over half of support interactions.
Category
Payments
Founded
2011
Headquarters
Boston, United States
Licence and supervision
Not a bank. Toast is a payments and software platform; Toast Capital loans are originated by its bank partner (WebBank) and serviced by Toast, which is subject to state commercial-lending, loan-brokering and servicing laws, the FTC Act and ECOA; Toast is not FDIC-insured.
Scale
approximately 180,000 locations, $60.7 billion of gross payment volume and $2.4 billion of annualised recurring run-rate in Q2 2026 (quarter to June 30, 2026)
Flagship platform
Toast IQ
AI leadership
Aman Narang · Steve Fredette · Elena Gomez
- Toast IQ launched on May 1, 2025 as an intelligence engine with menu upsells, shift summaries, digital chits and an AI marketing assistant, drawing on transactions across 130,000-plus locations; within four months more than half of all locations had used it and more than 8 million queries had been sent, per the Q4 2025 call.
- The FY2025 10-K describes Toast IQ as a conversational AI assistant that uses real-time and historical operating data so operators can ask questions in natural language and take actions in the Toast system; CEO Aman Narang said it 'executes tasks directly in Toast ranging from menu management to inventory updates'. By May 2026 it had 40,000 weekly active locations.
- Toast IQ Grow, the first AI agent on the platform, bundles marketing, advertising, online ordering and a Toast IQ Marketing Agent at one monthly rate; pilot customers saw sales rise more than 8% versus similar Toast restaurants, Narang called it 'the fastest-growing new offering we've ever launched', and on the Q2 2026 call said it was on track to become the fastest product to reach $10 million in ARR.
- AI runs much of Toast's own operation: over half of support interactions start with an AI agent and 70% of those never reach a human (Q4 2025 call); about 40% of support interactions were resolved by AI and engineering coding velocity rose over 60% (Q1 2026 call); SaaS gross margin rose about 240 basis points year on year in Q2 2026 partly from 'leveraging AI to transform customer support'.
- Toast Capital, the embedded lending arm, offers loans of $1,000 to $300,000 originated by bank partner WebBank and repaid as a fixed share of daily card sales; the 10-K says origination uses proprietary systems incorporating data science models, historical POS data and payment volume. Non-payments fintech led by Toast Capital contributed $57 million of gross profit in Q2 2026.
- Scale: 164,000 locations and $195.1 billion of GPV in 2025, about 6,500 employees; by Q2 2026 approximately 180,000 locations (up 22%), GPV $60.7 billion (up 22%), ARR $2.4 billion (up 25%), net income $154 million and a record 9,500 net new locations.
- In August 2026 Google began rolling out food ordering inside Ask Maps with Toast and Square as launch partners, co-developing a Universal Commerce Protocol for Food, putting Toast's ordering rails behind an AI agent outside its own apps.
What is Toast IQ?
Launched May 1, 2025 as an intelligence engine (menu upsells, shift summaries, an AI marketing assistant) built natively into the Toast platform from data across 130,000-plus locations, Toast IQ became a conversational AI assistant in 2025 that answers natural-language questions and executes tasks directly in Toast, from menu changes to inventory updates. Within four months of launch more than half of all locations had used it and more than 8 million queries had been sent; by May 2026 it had 40,000 weekly active locations. Toast IQ Grow, launched in 2026, is the first agent on the platform: it plans and runs marketing campaigns across email, text, push and social at a flat monthly rate, and pilot customers reported sales up about 8%.[6][5][4][8]
What has Toast done on AI, and when?
- Oct 15, 2026
- Aug 6, 2026
Google Ask Maps food ordering launches with Toast[9]
Google began rolling out agentic food ordering in Ask Maps with Square and Toast as partners and Uber Eats to follow, co-developing a Universal Commerce Protocol for Food.
- Aug 4, 2026
Q2 call: agent platform and $10 million ARR path for Grow[3]
Toast IQ Grow on track to be the fastest product to $10 million of ARR; plans for a series of agent products on top of the software platform; SaaS gross margin up about 240 basis points partly from AI in support; Toast Capital-led fintech gross profit $57 million.
- Aug 4, 2026
Q2 2026 results: record 9,500 net new locations[2]
ARR $2.4 billion (up 25%), about 180,000 locations, GPV $60.7 billion, net income $154 million, adjusted EBITDA $221 million; Narang called Toast IQ Grow the fastest-growing offering Toast has launched.
- May 7, 2026
Q1 2026 call: Toast IQ Grow, the first agent, launches[4]
Narang said Toast IQ had 40,000 weekly active locations, that Toast IQ Grow pilot users saw an average 8% sales increase, that engineering coding velocity was up over 60% and about 40% of support interactions were resolved by AI, and set out the evolution 'from a software platform to an agent platform'.
- Feb 18, 2026
10-K names AI a core capability and risk[1]
The annual report describes Toast IQ as a conversational AI assistant acting on real-time data, lists 'We use artificial intelligence in our platform' among risk factors, and reports 164,000 locations, $195.1 billion of 2025 GPV and about 6,500 employees.
- Feb 12, 2026
Q4 2025 call: half of locations used Toast IQ in four months[5]
Narang said the conversational assistant, one of over 500 features released in 2025, had been used by more than half of locations with over 8 million queries, and that it executes tasks in Toast; over half of support interactions now start with an AI agent and 70% never reach a human. Toast Capital contributed $51 million of gross profit.
- May 1, 2025
Toast IQ launches[6]
An intelligence engine built into the platform delivering prompts, recommendations and automated workflows: Menu Upsells, Shift at a Glance, Digital Chits, an AI-Marketing Assistant and Advertising. An early-usage Atlanta restaurant saw about a 6% increase from Menu Upsells.
Where does Toast use AI today?
| System | What it does | Status | Use case |
|---|---|---|---|
| Toast IQ conversational assistant[1][4][5] | Operators ask questions in natural language and take actions in Toast (menu, inventory, performance analysis); 40,000 weekly active locations in May 2026. | In production | Customer-facing chatbots |
| Toast IQ Grow marketing agent[4][3][8] | Builds and runs campaigns across email, SMS, push and social from the restaurant's own data at a flat monthly rate; pilots reported about 8% higher sales. | In production | Generative & agentic AI |
| Menu Upsells and service prompts[6] | AI prompts on handhelds and terminals suggest add-ons during ordering; an early-usage restaurant reported about a 6% lift. | In production | Generative & agentic AI |
| Toast Capital origination models[1][7] | Proprietary systems incorporating data science models, historical POS data and payment volume support loans originated by the bank partner and repaid from daily sales. | In production | Credit scoring & underwriting |
| AI-first customer support[5][4] | Over half of support interactions start with an AI agent and 70% of those never reach a human; about 40% of interactions resolved by AI by Q1 2026. | In production | Customer-facing chatbots |
| AI in engineering[4][3] | Engineering coding velocity up more than 60% as of the Q1 2026 call, with AI tooling across the organisation a stated investment priority. | In production | AI-generated code & coding agents |
| Agentic ordering via Google Ask Maps[9] | Toast's ordering integrates with Google's agentic food ordering in Ask Maps under a Universal Commerce Protocol for Food, rolling out from August 2026. | Rolling out | Third-party & vendor AI |
| AI risk disclosure[1] | The 10-K lists reliance on AI in the platform, and on the data, competitive products and risk management it requires, as a principal risk factor. | In production | AI governance (general) |
Use-case links open the tracker's rules-by-use-case matrix: which documents govern each system type.
What has Toast disclosed in numbers?
| Metric | Value | As of |
|---|---|---|
| Toast IQ adoption | over half of locations used it within four months; more than 8 million queries[5] | Feb 12, 2026 |
| Toast IQ weekly active locations | 40,000[4] | May 7, 2026 |
| Toast IQ Grow results | sales up more than 8% on average versus similar Toast restaurants; on track to be fastest product to $10 million ARR[8][3] | Aug 4, 2026 |
| AI in support | over half of interactions start with an AI agent, 70% never reach a human; about 40% resolved by AI[5][4] | May 7, 2026 |
| Engineering coding velocity | up over 60%[4] | May 7, 2026 |
| Q2 2026 scale | about 180,000 locations; GPV $60.7 billion; ARR $2.4 billion; net income $154 million[2] | Jun 30, 2026 |
| 2025 scale | 164,000 locations; $195.1 billion GPV; about 6,500 employees[1] | Dec 31, 2025 |
| Toast Capital-led fintech gross profit | $51 million (Q4 2025); $57 million (Q2 2026); loans of $1,000 to $300,000[5][3][7] | Jun 30, 2026 |
“Toast IQ is the foundation for our evolution from a software platform to an agent platform that can drive outcomes for our customers.”[4]
Aman Narang · Co-Founder and CEO · May 7, 2026
“ToastIQ not only generates reports and insights about restaurant performance, it executes tasks directly in Toast ranging from menu management to inventory updates.”[5]
Aman Narang · Co-Founder and CEO · Feb 12, 2026
“Toast IQ Grow is the fastest-growing new offering we've ever launched, and it's a clear signal of how we can use AI to transform what Toast can do for customers.”[2]
Aman Narang · Co-Founder and CEO · Aug 4, 2026
“Restaurants have a wealth of data available to help them optimize their business, but often don't have the time or training to interpret and act on it.”[6]
Steve Fredette · Co-Founder and President · May 1, 2025
Who runs AI at Toast?
Which regulators govern Toast's AI?
| Authority | Why it matters here | Documents |
|---|---|---|
| State commercial-lending and loan-brokering regulators | Toast Capital loans are subject to state commercial-loan disclosure, credit-discrimination and credit-reporting laws, and Toast's marketing and servicing for its bank partner fall under state loan-brokering and servicing laws; the 10-K says it may need to register as a commercial loan facilitator in some states. | |
| Federal Trade Commission | The 10-K notes the FTC enforces Section 5 of the FTC Act against non-banks over the marketing and servicing of financial products to small businesses, which covers Toast Capital's model-driven loan offers and Toast IQ's AI-generated marketing. | |
| CFPB | Toast Capital's data-science-driven origination support for commercial loans must comply with ECOA and Regulation B, which apply to business credit and to adverse-action notices when models decline applicants. | ECOA / Regulation B adverse action (15 U.S.C. 1691(d); 12 CFR 1002.9) |
| SEC | As an NYSE-listed company that names AI a principal risk factor and reports Toast IQ adoption, agent ARR and AI-driven margin gains on its calls, Toast's AI claims sit within the SEC's AI-disclosure recommendations and examination priorities. | Investor Advisory Committee AI disclosure recommendation Division of Examinations FY2026 Priorities |
Linked authorities have a page in the AI Regulation Tracker; the others are named for completeness and not yet tracked.
What does the public record suggest about Toast's AI strategy?
Analysis by BankingNewsAI from the sources cited on this page. Observations, not advice.
01
The AI product is sold as outcomes, and the outcome metric is sales lift
Toast reports Toast IQ Grow as an 8% average sales increase versus comparable restaurants and the fastest route to $10 million of ARR; this is a revenue claim for customers rather than a cost claim, which distinguishes it from most fintech AI disclosures.
02
Payments data is the moat Toast IQ runs on
Every Toast IQ answer and Grow campaign draws on POS and payments data from about 180,000 locations and $60.7 billion of quarterly GPV; the same data feeds Toast Capital's origination models, so the AI and the lending share one dataset.
03
Support deflection is already the majority case
More than half of support interactions begin with an AI agent and 70% of those never reach a person; Toast credits AI in support for part of a 240-basis-point SaaS margin gain, so the cost side of AI is visible in reported margins.
04
Lending risk sits with the bank partner, model risk with Toast
WebBank originates every Toast Capital loan while Toast supplies the data-science origination models and services repayment from daily sales; the regulatory perimeter is therefore state commercial-lending law and ECOA rather than bank supervision of Toast itself.
05
Agentic distribution is moving outside Toast's apps
Google's Ask Maps ordering with Toast as a launch partner means AI agents, not only diners, will place orders through Toast rails, a channel Toast does not control.
What is Toast IQ and how does it use AI?
Toast IQ is the AI layer of Toast's restaurant platform. Launched May 1, 2025 as an intelligence engine (menu upsells, shift summaries, an AI marketing assistant), it became a conversational assistant that lets operators ask questions in natural language and take actions directly in Toast, from menu changes to inventory updates, using real-time and historical data. More than half of locations used it within four months, over 8 million queries were sent, and by May 2026 it had 40,000 weekly active locations.
What is Toast IQ Grow?
Toast IQ Grow is Toast's first AI agent, launched in 2026. It takes on a restaurant's marketing: building and running campaigns across email, SMS, push notifications and social from the restaurant's own guest data, with advertising, online ordering and a Toast IQ Marketing Agent included at one monthly rate. Toast says Grow customers' sales rose more than 8% on average versus similar Toast restaurants, that it is the fastest-growing offering it has launched, and that it is on track to be the fastest product to reach $10 million of ARR.
Is Toast a bank or a fintech?
Toast is a NYSE-listed payments and software company, not a bank, and says so on its site. It processes card payments for about 180,000 locations ($60.7 billion of GPV in Q2 2026) and offers Toast Capital loans of $1,000 to $300,000 that are issued by its bank partner WebBank and repaid as a fixed share of daily sales; Toast markets and services those loans and supplies data-science origination models.
Does Toast use AI in customer support?
Yes. On its Q4 2025 call Toast said more than half of support interactions now start digitally with an AI agent and 70% of those never reach a human; by the Q1 2026 call about 40% of all support interactions were resolved by AI. The CFO attributed part of a 240-basis-point rise in SaaS gross margin in Q2 2026 to using AI to transform customer support.
Who regulates Toast Capital's AI-driven lending?
Toast Capital loans are originated by WebBank, so the bank's supervisors oversee the loans, while Toast's role as marketer, servicer and provider of origination models is governed by state commercial-lending, loan-brokering and servicing laws, the FTC Act's ban on unfair or deceptive practices toward small businesses, and ECOA's credit-discrimination and adverse-action rules. Toast's 10-K says it may need to register as a commercial loan facilitator in some states.
How big is Toast in 2026?
In Q2 2026 Toast reported approximately 180,000 locations (up 22%), gross payment volume of $60.7 billion (up 22%), annualised recurring run-rate of $2.4 billion (up 25%), net income of $154 million, adjusted EBITDA of $221 million and a record 9,500 net new locations. For full-year 2025 it processed $195.1 billion of GPV across 164,000 locations and had about 6,500 employees.
Who leads AI at Toast?
Co-founder and CEO Aman Narang fronts the strategy, describing Toast IQ as the foundation for moving 'from a software platform to an agent platform' and setting three priorities: expand what Toast does with AI, expand markets, and reinvent how Toast works with AI. Co-founder and President Steve Fredette introduced Toast IQ in May 2025. CFO Elena Gomez reports the margin effects, including AI-driven support efficiency.
- Toast, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2025
- Toast Announces Second Quarter 2026 Financial Results
- Toast (TOST) Q2 2026 Earnings Call Transcript
- Toast (TOST) Q1 2026 Earnings Call Transcript
- Toast (TOST) Q4 2025 Earnings Call Transcript
- Toast Launches ToastIQ to Superpower the Future of Restaurants
- Toast Capital: Business Loans (retrieved October 15, 2026)
- Toast Innovation Hub: Spring 2026 (retrieved October 15, 2026)
- Ask Maps gets more helpful with food ordering and more
Neobank
BNPL & lending
Payments
Card network
Brokerage
Business finance & infrastructure
When Toast moves on AI, you'll read it here first.
when a bank, fintech or regulator moves on AI, it is in the next morning's brief · six sourced stories · 7 am ET · free
plus every tracker, bank and agent page update, the morning after · leave any morning