How to build an AI phone agent for your small business

Missing phone calls is one of the most frustrating parts of running a small business. You're in the middle of helping a customer, out on a job site, or finally making progress on your to-do list, and the phone rings at the most inconvenient time. You know the stress. That missed call could've potentially been a new customer who gets impatient and called your competitor instead.

An AI phone agent solves this problem. It answers your calls, helps your customers, and makes sure you never lose business just because you couldn't get to the phone. The good news is that setting one up is way easier than it sounds.

In this guide, we'll show you exactly how to build an AI phone agent for your business using Upfirst. No coding required. No technical background needed. We built this platform for the small business owner with lots to do, has little time, and needs something that’s easy to set up. We're talking having an AI virtual receptionist ready to answer your phone in under 30 minutes.

If you can fill out an online form, you can do this.

What is an AI phone agent?

An AI phone agent is software that answers your business calls using conversational artificial intelligence. Think of it like having a receptionist who never takes breaks, never calls in sick, and doesn't need health insurance. It just works, 24 hours a day.

When someone calls your business, the AI phone assistant picks up right away. It greets the caller, listens to what they need, and responds naturally. It can answer questions about your business, take messages, schedule appointments, and transfer calls to you when needed.

You might hear these tools called different names. AI voice agents, AI receptionists, virtual receptionist AI, or AI call answering services all refer to the same thing: an AI that handles your phone calls so you can actually focus on running your business.

How AI phone agents actually work

You don't need to understand all the technical stuff to use an AI phone answering system. But if you're curious, here's the simple version of what happens when someone calls.

When a caller speaks, the AI listens and turns their words into text. This happens instantly, in real time.

Then the AI figures out what the caller actually needs. Are they asking about your hours? Do they want to book an appointment? Do they have a question about pricing? The AI reads the situation and decides the best way to help.

Next, the AI creates a response using the information you've taught it about your business. It pulls from details like your services, prices, location, and answers to common questions.

Finally, the AI speaks its response back to the caller in a natural voice. From the caller's perspective, it feels like talking to a friendly, helpful person. 

Why businesses use AI phone agents

Here's a stat that might hit close to home: small and mid-sized businesses miss approximately 62% of calls. That's not a typo. More than half of the calls coming into your business might be going unanswered.

Think about what that means. If you get 20 calls a day, 12 of them are going to voicemail or ringing out. Some of those callers will try again. But plenty of them will just call the next business on their list.

The reasons are pretty understandable. You're with a customer. You're driving. You're finally eating lunch. You're in the middle of a job and your hands are covered in grease or drywall dust. Life happens, and you can't always get to the phone.

That's exactly why businesses are turning to AI phone agents. They answer every single call, no matter what time it is or how busy you are. No more missed opportunities because you couldn't pick up.

Beyond just answering calls, AI phone agents help businesses:

• Save money on staffing. Hiring a full-time receptionist costs $35,000 or more per year. An AI phone agent costs a fraction of that.
• Extend their hours. Your business might close at 5pm, but an AI phone agent works nights, weekends, and holidays.
• Stay consistent. The AI gives the same friendly, professional response every time. No bad days, no rushed answers when things get hectic.
• Free up time. When you're not constantly answering the same questions, you can focus on the work that actually grows your business.

Common use cases for AI phone agents

Small businesses use AI phone agents in lots of different ways. Here are some of the most common.

Answering common questions. People call asking the same things every day. What time do you open? Where are you located? How much does it cost? An AI phone agent handles these instantly so you're not repeating yourself for the hundredth time.

Appointment scheduling. If you run an appointment-based business, the AI can book, reschedule, and cancel appointments on its own. It checks your calendar and finds times that work. No more phone tag trying to nail down a time.

Lead capture. When a potential new customer calls, the AI collects their contact information and asks the right questions. You get everything you need to follow up, even if you couldn't answer the call yourself. No more sticky notes with half-legible phone numbers.

After-hours coverage. Your business might close at 5pm, but customers still call at 8pm. An AI phone system for small business answers those calls, takes messages, and makes sure you don't miss opportunities just because you have a life outside of work.

Call overflow. When you and your team are swamped, the AI picks up the calls you can't get to. No more sending customers to voicemail during your busiest hours.

Message taking. When someone needs to leave you a message, the AI collects the details and sends them to you right away by text or email. Way more reliable than hoping you remember to check voicemail.

Call routing. Some calls need to reach you or a specific team member immediately. The AI can spot urgent situations and transfer those calls to the right person.

How to set up your AI phone agent with Upfirst

Setting up an AI phone agent with Upfirst only takes a few steps. You can try it free for 14 days to see how it works for your business. No credit card required to start.

1. Sign up and create your agent

Start by signing up for a free trial on Upfirst. The setup process walks you through a few simple choices to get your agent ready.

• You'll add some basic information about your business. This helps the AI understand who you are and what you offer.
• You'll pick your agent's voice. Choose one that matches your business and sounds right for your customers.
• You'll write a custom greeting for your callers. This is the first thing people hear, so keep it friendly and professional.
• Finally, you'll also get a free phone number for your agent. This is the number where your forwarded calls will go, or you can use directly on your site.

2. Customize your agent's knowledge base

This is the step that really matters. The knowledge base is where you teach your AI everything it needs to know about your business.

Add details about your services, pricing, hours, location, and anything else callers usually ask about. Think about the questions you answer on the phone every single day and make sure your AI can handle them.

You'll also give instructions on how the AI should handle different situations. What should it do when someone wants to book an appointment? How should it respond to a complaint?

Here's a helpful tip: create entries that explain the different types of callers you get and how to handle each one. New leads usually need different treatment than existing customers. A new lead might want to learn about your services, while a current customer might need help with something specific. Adding this context helps your AI respond the right way every time.

3. Set up optional features

Upfirst includes several extra features with every plan. Set these up based on what your business needs.

Transfer call rules. Tell your AI when to transfer calls to you or someone on your team. You might want urgent calls sent through right away, or certain types of customers routed to specific people.

Calendar integration. Connect your Google or Outlook calendar so the AI can schedule appointments directly. It sees your availability and books callers into open time slots. No double-bookings, no back-and-forth emails.

Text messaging. Your AI can text callers during the call. Many businesses use this to send booking links, directions, or website links for more information. It's a nice touch that customers appreciate.

4. Connect your business phone number

The final step is connecting your current business phone number to your Upfirst agent. You'll do this by setting up call forwarding.

Your phone provider will offer different options depending on your plan.

You can forward every call to your AI agent. This way, the AI answers all your calls automatically.

Or you can forward only unanswered calls. This lets you answer when you're available, and the AI steps in when you can't pick up. It's a good choice if you want to handle some calls yourself but have reliable backup for the rest.

Check with your phone provider to see which forwarding options work for you.

Industries using AI phone agents

AI phone agents work well for all kinds of small businesses. Here are some industries where they're especially useful.

Healthcare and medical offices use AI receptionists to schedule appointments, answer insurance questions, and handle patient calls without keeping people on hold forever.

Home services companies like HVAC, plumbing, and electricians use them to capture leads and book service calls while technicians are out in the field doing actual work.

Legal and law firms use AI phone agents to screen potential clients, answer basic questions, and schedule consultations without pulling attorneys away from billable hours.

Real estate professionals use them to handle property inquiries and book showings without interrupting client meetings or open houses.

Salons and spas rely on AI call answering services to manage bookings and answer questions about services and availability, especially during busy appointment times.

Auto dealerships and repair shops use them to schedule test drives, service appointments, and answer inventory questions when the sales team is busy with customers on the lot.

Property management companies use AI phone agents to handle tenant calls and maintenance requests efficiently, even when the office is closed.

If your business gets phone calls, an AI phone agent can probably help you handle them better. See a full list of industries we serve every day.

Get started with your AI phone agent

Building an AI phone agent for your small business doesn't require technical skills or coding. With Upfirst, you can set one up in just a few minutes and start taking calls right away.

Try it free for 14 days and see the difference it makes. You might be surprised how much time you save and how many calls you were actually missing before.