After testing the AI chatbot technology at over 100 restaurants in 2021, with an 85% accuracy rate but requiring human assistance, McDonald's is ending its two-year experiment with IBM's AOT by late July 2024, phasing it out due to issues with accuracy, viral videos of customers struggling with the AI, and complexities in scaling the technology across its vast number of locations, diverse promotional offerings, menu variations, dialects, and human interactions.
McDonald's acquired AI speech company Apprente in 2019 and partnered with IBM to develop Automated Order Taker (AOT) technology for drive-thrus, aiming to simplify operations and improve customer experience.
In 2021, McDonald's entered a global partnership with IBM to test AOT at over 100 drive-thrus, as it operates the largest fast-food drive-thru system with over 27,000 locations worldwide.
Despite the initial goal of enhancing the drive-thru experience, McDonald's decided to discontinue the initiative due to viral videos showing flaws, including order inaccuracies and customer struggles.
The AI technology aimed to simplify operations, create a faster experience, and attract tech-savvy Gen Z and Millennials through upselling, but the fast-food giant tested automated voice-ordering technology at ten drive-thrus in Chicago, achieving 85% order accuracy, with human employees tending to intervene, disrupting the AI's function during the pilot.
While the reason for ending the IBM deal is unclear, McDonald's plans to explore alternative voice ordering solutions and new technological collaborations, aiming to finalize a new system by the end of the year, as the company remains committed to exploring automation and technology improvements.
Other fast-food companies like White Castle and Wendy's are also exploring AI options, while IBM stated it would work with other Quick-Serve Restaurant clients on the AOT technology, which is already being tested or used at drive-thrus in chains like Hardee's, Krystal, and Wendy's.
McDonald's plans to selectively invest in AI and automation technologies to improve efficiency without full deployment across all outlets, aiming to integrate technology to complement human workers and enhance service capabilities.
Sources: Business Insider, The Verge, PCMag, Yahoo, TechStory, Business Insider India, Technology Inquirer, Local12, TweakTown, Tasting Table, PC-Tablet, Quartz.
This article was written in collaboration with Generative AI news company Alchemiq.
