McDonald’s has decided to discontinue its AI-based drive-thru order systems, reflecting broader trends and challenges faced in the fast-food industry’s pursuit of automation.
- Initially rolled out in collaboration with IBM in 2021, over 100 locations across the US adopted the technology.
- Despite the trial’s termination, McDonald’s has assured that AI will remain integral to its future strategies, with final decisions anticipated by the year’s end.
- Other major fast-food chains, such as Wendy’s and Taco Bell, are also exploring AI-driven solutions to improve efficiency and cut labour costs.
- The technology has encountered significant issues, including incorrect orders and the need for substantial human intervention.
McDonald’s has decided to end its trial of AI-driven order-taking systems in over 100 locations across the US. The initiative, part of a 2021 agreement with IBM, utilised automated voices to handle customer orders. Despite the trial’s cessation, McDonald’s has not offered a public explanation but informed franchisees that the technology would be discontinued as of 26 July.
A spokesperson from McDonald’s confirmed that a voice-ordering solution would still be part of the company’s future plans. A final decision is expected by year’s end, indicating ongoing commitment to AI technology. This aligns with broader industry trends where other fast-food giants, such as Wendy’s, Hardee’s, Carl’s Jr, and Del Taco, have also been experimenting with AI in their operations.
Yum Brands, which owns Taco Bell and KFC, has announced an ‘AI-first mentality’ for its operations. This shift is driven by the potential to replace human workers and tackle rising labour costs, especially after California implemented a new mandatory minimum wage law for fast-food workers. The allure of AI in reducing operational costs is significant for these companies.
However, the deployment of AI technology has not been without challenges. Viral videos have circulated showing AI systems making errors, such as incorrectly adding items or multiplying orders to excessive amounts. Notably, TikTok videos revealed instances where McDonald’s AI mistakenly added butter packets or charged hundreds of dollars for McNuggets.
Additionally, many AI systems still depend heavily on human intervention. For example, Presto Automation Inc disclosed in an SEC filing that human workers in countries like the Philippines are involved in around 70% of customer interactions. This reliance underscores the ongoing complexities and limitations of current AI technologies in fully automating customer service.
Fast-food companies are increasingly exploring other AI applications, including digital chatbots and image-recognition technologies. Last December, McDonald’s partnered with Google to develop ‘Ask Pickles,’ a chatbot designed to train employees on various tasks, such as cleaning restaurant equipment. This initiative represents just one of many efforts by the fast-food industry to integrate AI into everyday operations.
As McDonald’s and its competitors continue to refine their strategies, the future of AI in the fast-food sector remains both dynamic and uncertain. The industry is weighing the advantages of increased efficiency and cost savings against the practical challenges and limitations that AI currently presents.
The fast-food industry’s journey with AI is ongoing, balancing innovation with practical challenges.
