Interactive Voice Response (IVR) is an automated phone system that directs callers to the appropriate department, agent, or self-service option based on voice prompts and keypad inputs. Businesses use IVR to improve customer service efficiency, reduce wait times, and automate routine inquiries. AI-powered IVR systems can analyze caller intent, provide personalized responses, and integrate with CRM platforms to offer seamless service. IVR is widely used in contact centers, banking, healthcare, and customer support to enhance call routing, minimize agent workload, and improve customer experiences.