McDonald’s ends AI drive-thru trial as fast-food industry tests automation
What was the duration and nature of the partnership between McDonald’s and IBM regarding the AI drive-thru system?
The partnership between McDonald's and IBM for the AI drive-thru system began in 2021. The collaboration aimed to develop and deploy Automated Order Taking (AOT) technology using AI and voice recognition. IBM acquired McD Tech Labs, which was created to advance employee and customer-facing innovations, as part of the agreement5. The AI drive-thru system was tested at over 100 McDonald's locations in the US. However, McDonald's decided to end the test run in 2024, with plans to explore new partnerships for future automated order-taking technology4.
What were the main reasons McDonald's decided to end its AI chatbot test in drive-thrus?
McDonald's decided to end its AI chatbot test in drive-thrus for several reasons. Although the company did not provide a specific public reason for ending the test run, it is believed that the decision was made in order to explore voice ordering solutions more broadly. McDonald's partnership with IBM had given the company the confidence that a voice-ordering solution for drive-thru would be part of its restaurants' future. However, the AI chatbots faced challenges in accurately understanding and processing customer orders, leading to viral videos of order failures and negative media coverage. Additionally, some AI systems were found to rely heavily on outsourced human labor to function properly. Despite ending its partnership with IBM, McDonald's remains open to evaluating long-term, scalable voice ordering solutions and may collaborate with other tech companies in the future.
Which other fast-food chains are currently using AI technology at their drive-thrus, and what are their goals with this technology?
Several fast-food chains are currently using AI technology at their drive-thrus. These include Wendy's, Hardee's, Carl's Jr, and Del Taco. Yum Brands, the parent company of Taco Bell and KFC, has also expressed an interest in implementing AI technology in their fast-food restaurants.
The primary goal of using AI technology in drive-thrus is to improve efficiency and speed up the ordering process. AI systems are designed to accurately take orders, process payments, and even make personalized menu suggestions based on previous orders or popular items. This not only reduces the time customers spend at the drive-thru but also helps to manage staffing requirements and reduce labor costs.
Another goal is to enhance the customer experience by providing a more consistent and seamless ordering process. AI systems can greet customers in a friendly manner, understand multiple languages and accents, and remember regular customers' preferences to offer personalized service.
Furthermore, some fast-food chains are using AI technology to optimize their menus and develop new products. For example, Shake Shack has used an AI algorithm to create dairy-free, plant-based desserts by analyzing animal-based dairy on a molecular level and finding plant-based molecules that mimic the characteristics that make the food desirable.
Overall, the goal of using AI technology in fast-food drive-thrus is to improve efficiency, speed up service, enhance the customer experience, and reduce labor costs.