It was worth a try, especially for states like California that are making McDonalds a luxury type restaurant due to prices, thanks to massive minimum wage laws recently passed.
McDonald’s has decided to retract its artificial intelligence systems from drive-thru kiosks, ending a two-year collaboration with IBM. The fast-food leader had deployed AI to take voice orders at over 100 restaurant locations. Despite the initiative’s intention to expedite service, the company plans to dismantle the systems by the end of next month, citing a shift in strategy to explore broader voice ordering solutions.
Wow, some big tech news – $mcd has ended their relationship with $IBM with our AOT program, automated order taking (I waited to tweet this until made public).
If you follow the thread below, it gives you all the deets from that past 5 years. We sold McD Tech Labs to IBM a few… https://t.co/JR8QHQN0Vb pic.twitter.com/eLi7AP7nuc
— McFranchisee (@McFranchisee) June 14, 2024
Mason Smoot, McDonald’s USA’s chief restaurant officer, stated in an email that while there were successes with the AI implementation, the company aims to reassess and expand its approach to voice ordering technologies. This decision comes amidst customer frustrations evident in numerous TikTok videos, where customers encountered errors like receiving incorrect orders—from multiple sweet teas to unwanted condiments—highlighting the AI’s limitations in understanding customer requests accurately.
The initiative was part of McDonald’s broader engagement with AI technology to enhance operational efficiency and customer experience. In 2019, McDonald’s invested in several AI ventures: it acquired Apprente to quicken order processing, purchased Dynamic Yield to tailor digital promotions based on variables like weather and time, and took a stake in Plexure to enhance its mobile app capabilities. The company also established McD Tech Labs to further integrate advanced technology solutions into its operations.
McDonalds hired IBM to develop an AI-based drive thru ordering system.
It had a high failure rate, and now McD’s is pulling out
Feels obvious that we should be using AI & that IBM is the wrong vendor.
Somehow I think “Nobody Gets Fired For Buying IBM” doesn’t apply anymore. pic.twitter.com/WH41hStoyV
— Sheel Mohnot (@pitdesi) June 17, 2024
Despite the current setback with the drive-thru AI, McDonald’s remains committed to integrating advanced technologies into its service model. The partnership with IBM has provided valuable insights, reinforcing McDonald’s confidence in the future potential of AI in drive-thrus. The company’s statement to Fortune emphasized ongoing evaluations to develop scalable, long-term solutions for voice ordering, expecting to finalize a new strategy by year-end.
McDonald’s to end AI drive-thru experiment after errant orders — including one that added bacon to ice cream https://t.co/yxmGQnFAAN pic.twitter.com/6tWck46XHh
— New York Post (@nypost) June 17, 2024
Meanwhile, IBM continues to work with other major chains like Wendy’s, Harhee’s, and Dunkin’, adapting AI for their drive-thru systems as well. This reflects a growing trend in the fast-food industry, where companies are keen to leverage AI to streamline operations and improve customer interactions, even as they navigate the complexities and challenges of implementing such technologies effectively.
Major Points:
- McDonald’s has terminated its two-year partnership with IBM, which involved using AI to take orders at drive-thru kiosks.
- The AI technology was tested in over 100 restaurants but will be removed by the end of the next month.
- Challenges included AI misunderstandings leading to incorrect orders, as highlighted in various TikTok videos.
- Despite setbacks, McDonald’s continues to explore AI and other technologies for future implementation in voice ordering systems.
- IBM still collaborates with other food chains like Wendy’s and Dunkin’ to integrate AI into their drive-thru services.
TL Holcomb – Reprinted with permission of Whatfinger News
