The food delivery business in Mumbai is a vibrant and quickly expanding sector that serves the city's fast-paced and diverse population. The role of artificial intelligence in food delivery systems to optimize operations and improve customer experiences is becoming more and more demanded by customers who want faster, more individualized, and more efficient food delivery services. Predictive analytics for customer retention, dynamic menu customization, predictive delivery time estimation, AI chatbots for food ordering, and automated customer query resolution are some of the factors that are the subject of this paper. The difficulties and elements that affect food delivery system optimization and improve customer experiences are further examined in the paper. The creation of food delivery applications in Mumbai and future improvements to food delivery services would benefit from these findings.