McDonald’s has officially terminated its global partnership with IBM, marking the conclusion of their collaboration on artificial intelligence technology used in select McDonald’s drive-thrus since 2021.
While the current AI-driven order taker test with IBM is winding down, McDonald’s, headquartered in Chicago, hinted at future possibilities, emphasizing an intention to explore voice ordering solutions more extensively.
In recent years, numerous fast food chains have ventured into AI integration across their operations, citing benefits such as enhanced speed and reduced costs. For instance, Wendy’s developed the “Wendy’s FreshAI” chatbot in partnership with Google Cloud, while White Castle and Popeyes implemented voice-powered AI technology through collaborations with SoundHound AI and OpenCity’s “Tori” voice assistant, respectively. Popeyes U.K. recently introduced its own AI-powered drive-thru named “Al,” reporting a promising 97% accuracy rate following a successful pilot program.
However, the journey hasn’t been without challenges. McDonald’s AI order taker, developed with IBM, faced criticism for inaccuracies and operational mishaps. Social media platforms documented instances where the chatbot misunderstood orders, leading to humorous yet frustrating situations for customers. Reports from sources familiar with the technology highlighted difficulties in interpreting accents and dialects, underscoring issues impacting order accuracy.
McDonald’s declined to comment on the specific accuracy concerns regarding its automated order taker. Meanwhile, IBM acknowledged ongoing discussions and pilot programs with other quick-service restaurant clients interested in adopting similar AI-driven technologies.
According to internal communications obtained by CNBC and Restaurant Business, McDonald’s plans to deactivate the automated order technology in test locations by July 26, 2024. Both IBM and McDonald’s affirmed their intent to continue collaborating on other projects despite concluding their AI drive-thru partnership. McDonald’s reiterated its commitment to leveraging various IBM products across its global system, underlining a multi-year partnership with Google Cloud aimed at integrating generative AI across key business functions in restaurants worldwide.
The decision to discontinue the IBM partnership signals McDonald’s strategic shift in exploring alternative AI solutions for future drive-thru innovations.
