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McDonald’s ends automated drive-through project with IBM
Technological challenges and new partnerships for the future of AI in McDonald’s restaurants
DukeRem18 June 2024

McDonald’s has decided to end the test of its automated drive-through technology developed in collaboration with IBM in over 100 restaurants. This decision, communicated through a memo to franchisees, marks a shift in the company’s plans for AI usage in its outlets. Despite initial successes, the Automated Order Taker (AOT) system faced several challenges, including difficulties in interpreting various accents and dialects, impacting order accuracy.

Launched in 2021, the project aimed to streamline and expedite operations using voice commands. However, the technology demonstrated only 85% accuracy, necessitating human intervention for about one-fifth of the orders. This accuracy level was deemed insufficient for a large-scale rollout, prompting McDonald’s to explore other voice ordering solutions.

Mason Smoot, McDonald’s USA senior vice president and chief restaurant officer, emphasized that IBM remains a trusted partner and that the company will continue to use other IBM products in its system. While McDonald’s has decided to end the current partnership on AOT, it does not rule out the possibility of integrating AI solutions in the future, highlighting its ongoing interest in technological innovation in its restaurants.

Various restaurants, from Del Taco to Panera, are experimenting with AI to improve operations, both in the kitchen and order management. Companies like Chipotle and Yum Brands have also significantly invested in robotics and AI in recent years.

McDonald’s acquired the startup Apprente in 2019, renaming it McD Tech Labs, to develop this technology. The company then sold McD Tech Labs to IBM in 2021, hoping that IBM could expand and refine the AOT technology. Despite the challenges, McDonald’s has expressed confidence that a voice ordering solution will be part of the future of its restaurants.

Additionally, McDonald’s announced a new partnership with Google Cloud, although specific details of this collaboration have not been disclosed. Speculation suggests that Google might become the new partner for the chain’s AI solutions.

The decision to end the AOT project with IBM comes as McDonald’s seeks to balance technological innovation with operational efficiency and cost savings. The company will continue to evaluate scalable, long-term solutions to enhance customer experience and restaurant efficiency.

Highlights

  • McDonald’s ends the collaboration with IBM for automated drive-through.
  • AOT technology had an 85% accuracy rate, insufficient for large-scale implementation.
  • McDonald’s will continue exploring voice ordering solutions in the future.
  • Partnership with Google Cloud announced, but without specific details.