Best AI Phone Answering Service for Business: Top Options Compared (2025)

Every missed call is a missed opportunity. But hiring a full-time receptionist costs $35,000 or more per year. Traditional answering services charge $1-$2 per call and still put callers on hold.

AI phone answering services offer a third option. Instant pickup, intelligent conversation, 24/7 availability, and a fraction of the cost. But which one should you choose?

We compared the most popular options so you do not have to.

What Makes a Good AI Phone Answering Service?

Before diving into specific services, here is what separates a great AI answering service from a mediocre one.

Conversation Quality

The AI should sound natural, handle interruptions gracefully, and manage real conversations. Not just scripted decision trees. Callers should feel like they are talking to a helpful, competent person.

Business Customization

A generic answering service that cannot tell callers about your specific hours, services, or pricing is nearly useless. The best services let you deeply customize the AI's knowledge and personality.

Integration with Your Tools

The AI should connect to your calendar for scheduling, your CRM for lead tracking, and your phone system for seamless call handling. Without integrations, you are just adding another disconnected tool.

Call Routing and Escalation

Not every call should be handled entirely by AI. The best services know when to transfer to a live person and do so seamlessly.

Reporting and Transcripts

You need to know what is happening on your phones. Call recordings, transcripts, analytics, and summaries are essential for monitoring quality and improving over time.

Top AI Phone Answering Services Compared

1. Custom AI Solutions (Agency-Built)

What it is: A fully custom AI phone agent built specifically for your business by an AI automation agency.

How it works: An agency like NovaSoft AI builds a tailored voice agent trained on your business, services, pricing, and processes. It integrates directly with your existing tools and phone system.

Best for: Businesses that want a solution perfectly matched to their operations with no compromises on customization.

Pros:

• 100% customized to your business
• Deep integrations with your specific tech stack
• Ongoing optimization and support
• Handles complex workflows unique to your industry
• Scales with your business

Cons:

• Higher upfront investment than off-the-shelf tools
• Takes 1-3 weeks for initial setup

Typical cost: $500-$2,000/month depending on complexity and call volume.

2. Smith.ai

What it is: A hybrid service combining AI with live human receptionists.

How it works: AI handles initial call screening and simple tasks. More complex calls are routed to live receptionists. Offers a blend of automation and human touch.

Best for: Businesses that want some AI efficiency but are not ready to go fully automated.

Pros:

• Human backup for complex situations
• Established reputation with law firms and professional services
• Lead intake and qualification
• Appointment scheduling

Cons:

• More expensive than pure AI solutions
• Per-call pricing adds up at higher volumes
• AI component is less advanced than dedicated AI platforms

Typical cost: $240-$900/month based on call volume.

3. Goodcall

What it is: An AI phone agent platform designed for small businesses.

How it works: You create an AI agent through their platform, customize its knowledge base, and connect it to your phone system. The AI handles calls autonomously.

Best for: Small businesses looking for an affordable, self-service AI answering solution.

Pros:

• Affordable entry point
• Easy setup process
• Basic scheduling integration
• Good for handling FAQs and simple inquiries

Cons:

• Less sophisticated conversation handling
• Limited integrations compared to custom solutions
• May struggle with complex or unusual requests

Typical cost: $59-$199/month.

4. Rosie AI

What it is: An AI answering service focused on home service businesses.

How it works: AI answers calls, captures lead information, and sends you notifications. Designed specifically for contractors, plumbers, HVAC companies, and similar service businesses.

Best for: Home service companies that miss a lot of after-hours calls.

Pros:

• Industry-specific training for home services
• Simple, straightforward setup
• Captures essential lead information
• Affordable pricing

Cons:

• Limited to home services use cases
• Less customizable than broader platforms
• Fewer integration options

Typical cost: $49-$199/month.

5. AnswerForce (AI + Live)

What it is: A traditional answering service that has added AI capabilities.

How it works: Combines AI call handling with live agent support. AI handles simple calls and routes complex ones to human operators.

Best for: Businesses transitioning from traditional answering services that want to add AI gradually.

Pros:

• Established answering service infrastructure
• Bilingual support
• 24/7 live backup
• Industry experience across multiple verticals

Cons:

• AI features are still evolving
• Higher cost than pure AI solutions
• Less customizable AI behavior

Typical cost: $300-$800/month.

How to Choose the Right Service for Your Business

Consider Your Call Volume

Under 100 calls/month: A budget-friendly platform like Goodcall or Rosie may be sufficient.

100-500 calls/month: A mid-tier solution with better customization and integrations makes sense.

500+ calls/month: A custom-built solution pays for itself quickly due to per-call savings and better conversion rates.

Consider Your Industry

Some industries have specific needs:

Healthcare/Dental: HIPAA compliance is non-negotiable. Make sure any service you choose is fully compliant.

Legal: Confidentiality requirements and intake complexity favor custom or hybrid solutions.

Home Services: Industry-specific platforms like Rosie understand your workflow out of the box.

General Business: Custom solutions offer the most flexibility.

Consider Your Technical Comfort

Not technical at all: Go with a managed solution or agency-built system. Someone else handles the complexity.

Somewhat technical: Self-service platforms with good onboarding can work well.

Very technical: You might consider building your own using platforms like Vapi or Retell (though this requires ongoing maintenance).

Setting Up Your AI Answering Service

Regardless of which service you choose, the setup process follows a similar pattern.

Step 1: Document Your Call Flows

Map out what happens when someone calls your business:

• What are the top 10 questions callers ask?
• What information do you need to collect from new callers?
• When should calls be transferred to a live person?
• What hours should the AI handle calls vs. forwarding?
• How should emergencies or urgent calls be handled?

Step 2: Prepare Your Business Information

Gather the details your AI will need:

• Business hours and location
• Service descriptions and pricing
• Frequently asked questions and answers
• Staff names and roles
• Scheduling availability and rules
• Special instructions for different call types

Step 3: Configure and Test

Set up the AI with your information and run test calls:

• Call from different numbers
• Ask every question you can think of
• Try to confuse the AI with unexpected requests
• Test the transfer and escalation process
• Have friends or staff call and give honest feedback

Step 4: Go Live Gradually

Start by forwarding calls to the AI only during off-hours or when lines are busy. Once you are confident in the quality, expand to handling more calls.

The ROI Math

Let's put numbers to it. Take a typical service business that:

• Receives 300 calls per month
• Misses 30% of them (90 missed calls)
• Converts 20% of answered calls to customers
• Average customer value: $500

Without AI: 210 answered calls x 20% conversion = 42 new customers x $500 = $21,000/month

With AI (answering all 300): 300 answered calls x 20% conversion = 60 new customers x $500 = $30,000/month

Additional revenue: $9,000/month

AI answering service cost: $500-$1,500/month

Net ROI: $7,500-$8,500/month in additional revenue.

That is a 5-17x return on investment. And this does not account for improved customer satisfaction, better reviews, or the time saved by your staff.

Making the Right Choice

The "best" AI phone answering service is the one that fits your specific business needs. Budget options work well for simple use cases. Custom solutions shine when you need deep integration and industry-specific handling.

What matters most is that you stop losing calls. Every missed call is revenue walking out the door.

If you want a custom AI phone answering solution built specifically for your business, book a free consultation with NovaSoft AI. We will analyze your call patterns and design a system that captures every opportunity.