The current research analyzes the significance of AI in food safety improvement and food wastage reduction in the hotel industry with particular reference to restaurant owners operating in Bihar and Jharkhand. The survey employed a quantitative and cross-sectional design where data were collected using a standardized Likert scale questionnaire. In this research, perceptions of IoT sensor, machine learning, computer vision, predictive analytics, smart inventory systems, and AI waste management solutions were explored. In terms of descriptive statistics, it was observed that majority of the respondents owned individual restaurants having a small-to-medium size workforce. It was also observed that adoption level of technology in general was low-to-moderate. Regardless of any infrastructural challenges, all the respondents had a highly favorable opinion about use of AI tools including IoT sensor-based food storage, smart inventory management, and predictive analytics for predicting demand. In addition, reliability statistics indicated high validity of the questionnaire while inferential statistics showed statistically significant variations among restaurant type and technology adoption level. Factor analysis showed a strong fit for the theoretical model by clustering the variables in Food Safety, Waste Management, and Operational Impact. These findings suggest the potential changes caused by AI in terms of business functioning in the hospitality industry. The application of artificial intelligence enables monitoring in terms of food safety that, in its turn, will help improve risk prediction and control. As for waste management, using AI-based prediction and analytics will help avoid overproduction and facilitate the realization of the sustainability agenda by restaurant owners. In view of future consequences, the application of AI can positively affect the image of the company as a company leading sustainability innovations. As a result, the restaurant will have a comparative advantage. However, some challenges concerning the implementation of AI in food safety and waste management should be taken into account, such as financial aspects, the readiness of employees, AI ethics, and technological dependence. Therefore, it became evident that the importance of AI in terms of food safety and waste management concerns both improvement and sustainability. The future perspective presupposes working on affordable AI technology, staff training, development of ethical AI policy, and building of appropriate infrastructures.