In a surprising turn of events, McDonald's (MCD) has decided to end its two-year partnership with IBM (IBM) that saw the fast-food giant testing artificial intelligence (AI) for taking voice orders at drive-thru kiosks. Despite testing the AI at over 100 restaurants, McDonald's plans to remove the systems by the end of next month. This decision marks a step back from AI at the drive-thru, at least for now.
McDonald's Drive-Thru AI Experience
"While there have been successes to date, we feel there is an opportunity to explore voice ordering solutions more broadly," said Mason Smoot, chief restaurant officer for McDonald's USA, in an email obtained by trade publication Restaurant Business.
The Goal and the Outcome
Introducing AI into the order-taking process aimed to speed up the overall turnaround time for customers. However, it remains unclear if this goal was fully achieved. Smoot's email indicated that McDonald's plans to make "an informed decision on a future voice-ordering solution by the end of the year" and expressed optimism about the practice, despite some public missteps.
TikTok videos showcased confused customers receiving incorrect orders, ranging from nine sweet teas to two pats of butter. One customer exclaimed to the bot, “Cream packet? No! I just want a large water and a cup of ice cream. Not a ketchup packet! Oh, my God,” highlighting the AI's shortcomings in understanding customer requests.
Learning from the Experience
"The goal of the test was to determine if an automated voice ordering solution could simplify operations for crew and create a faster, improved experience for our fans," McDonald's said in a statement to Fortune. "Through our partnership with IBM, we have captured many learnings and feel there is an opportunity to explore voice ordering solutions more broadly."
Despite these challenges, McDonald's remains confident that a voice ordering solution will be part of their restaurants' future. The company sees tremendous opportunity in advancing restaurant technology and will continue to evaluate long-term, scalable solutions.
McDonald's AI Journey
McDonald's has had a long-standing interest in AI. In 2019, it acquired AI firm Apprente to speed up order-taking and bought Dynamic Yield, which specializes in personalization and decision logic technology. The fast-food chain also took a 10% stake in Plexure, the vendor for the McDonald's app. McDonald's established McD Tech Labs and plans to expand its Silicon Valley presence by hiring additional engineers, data scientists, and tech experts.
Dynamic Yield's technology promotes different menu items based on time of day or weather, boosting customer spending. IBM continues to work with other chains, including Wendy’s, Hardee’s, and Dunkin', on using AI for drive-thru orders.
The Road Ahead
As McDonald's moves forward, it aims to leverage the insights gained from its partnership with IBM to refine its approach to AI in the drive-thru. The company remains committed to exploring new technologies that enhance customer experience and streamline operations. For now, customers can expect a return to human order takers while McDonald's evaluates the best path forward in its technological evolution.
Comments