McDonald’s Ditches IBM’s AI

TL;DR:

• McDonald’s ends partnership with IBM, removing AI tech from 100+ drive-thrus
• Drive-thru AI has potential but needs improvement, as shown by customer feedback
• McDonald’s seeks new partnerships for better AI solutions in drive-thrus

Imagine ordering your favourite McDonald’s meal without speaking to a human. In 2021, this became a reality when McDonald’s teamed up with IBM to introduce AI ordering systems at over 100 drive-thrus. However, the fast food giant recently announced it would remove IBM’s AI technology from these locations by July 26. What led to this decision, and what does it mean for the future of AI in drive-thrus, especially in Asia?

McDonald’s and IBM: A Partnership No More

McDonald’s, with over 27,000 drive-thru locations worldwide, has been a pioneer in fast food drive-thru systems. To stay ahead, they partnered with IBM three years ago to test automated order-taking technology at select drive-thrus. The results have been educational, to say the least.

Initially, the AI system faced criticism due to inaccurate orders, as shown in numerous TikTok videos. Nevertheless, the technology succeeded in upselling items and appealed more to younger, tech-savvy customers. Despite being in the development phase, the potential for AI to speed up operations and simplify workloads became evident.

The End of IBM’s AI at McDonald’s Drive-Thrus

McDonald’s has decided to remove IBM’s AI order-taking technology from more than 100 drive-thrus. This decision does not mark the end of AI in drive-thrus, as McDonald’s plans to explore other options for implementing this technology. In an email to franchisees, Mason Smoot, Chief Restaurant Officer for McDonald’s USA, expressed gratitude towards IBM and the restaurant teams involved in the testing phase.

A New Lane for Drive-Thru AI

As McDonald’s moves forward, they aim to find a more scalable and long-term voice-ordering solution for their drive-thrus by the end of the year. One potential partner is Presto Automation, a restaurant tech company making significant progress in drive-thru AI development.

Moreover, McDonald’s “Accelerating the Arches” expansion plan, which aims to increase its current 41,822 restaurants to 50,000 by 2027, suggests a broader incorporation of AI technology in the future. This focus on digital personalisation and drive-thru efficiency could pave the way for more AI-driven innovations.

The Impact on Asia’s AI and AGI Landscape

Asia, being a significant market for McDonald’s, will likely witness these AI-driven changes in its drive-thrus. This shift could create opportunities for Asian AI and AGI companies to collaborate with McDonald’s and contribute to the advancement of drive-thru technology.

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• To learn more about AI in fast food click here.