Why are investors concerned about Yelp's 2025 guidance?

Yelp lowered its 2025 revenue guidance, leading to broker downgrades and concerns about advertising resilience and AI execution.

How can AI help Yelp's business?

AI can help Yelp improve lead capture, scheduling, and nurturing for small business advertisers, potentially stabilizing revenue.

Home / Business and Economy / Yelp's AI Integration Sparks Debate

Yelp's AI Integration Sparks Debate

Q: What is Yelp's new integration with Hatch?

Yelp is integrating with Hatch to automate lead response, booking, and follow-up for service providers using customizable AI agents.

4 Dec, 2025

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Summary

Yelp integrates with Hatch to automate lead response using AI.
Company faces broker downgrades and lowered 2025 revenue guidance.
AI execution is key to Yelp's investment narrative and future growth.

Yelp recently announced an integration with Hatch, set to launch in November 2025. This partnership aims to combine Yelp's consumer reach with AI agents to automate lead response, booking, and follow-up for service providers across multiple communication channels.

Despite this technological advancement, Yelp is facing significant headwinds, including broker downgrades and a lowered 2025 revenue forecast. These challenges cast a shadow over the company's advertising and AI strategies, prompting investor concern.

The success of AI-driven products and workflow integrations is now central to Yelp's near-term catalyst. Investors are closely watching if these innovations can offset weaknesses in legacy categories and support revenue stability amid rising costs and advertiser demand.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.