Artificial Intelligence refers to the ability of a computer, robot, programmable gadget, or software program to carry out tasks and processes. AI in the hospitality sector refers to the application of cutting-edge technology to enhance several facets of hotel operations and guest service. Artificial Intelligence (AI) is gradually & progressively being used in the hotel & restaurant industry to improve proficiency & customer experience. Various stakeholders hold varied viewpoints regarding the awareness & practical use of AI in the restaurant industry. This research aims to explore the perception of AI in restaurants by identifying both the challenges and benefits of its adoption from the point of view of customers.AI offers numerous advantages, such as faster service, reduced human errors, better inventory management, and personalized customer interactions. Certain challenges include job displacement, loss of human interaction, high implementation costs, and data privacy risks. Thus, by addressing challenges and leveraging benefits, restaurants can adopt AI in a way that enhances both operational efficiency and customer satisfaction along with competitive advantage. This research provides insights on how customer perceives AI implementation in restaurants by stating its pros & cons. The research suggested ways for its acceptance & successful implementation.