McDonald’s is ending its partnership with IBM for AI drive-thrus, with the feature set to be discontinued before July 26. The decision was communicated to franchisees in an internal email, providing limited explanation for the move. McDonald’s cited the opportunity to explore voice ordering solutions more broadly as a reason for ending the current global partnership with IBM in automated order taking.
The AI self-service experiment began in 2021 and expanded in 2022, but now McDonald’s is reassessing its approach. While IBM will no longer be involved in AI drive-thrus, the two companies will maintain business ties for other aspects of McDonald’s operations. McDonald’s expressed confidence in the potential of a self-service voice ordering solution for the future, indicating that they are actively evaluating long-term options for this technology.
IBM, which developed Automated Order Taker (AOT) technologies for McDonald’s, highlighted the capabilities of their voice-activated AI in restaurant settings. Despite the end of the AI drive-thru program, IBM is engaging in discussions and pilots with other quick-service restaurant customers interested in AOT technology.
Privacy concerns may have also influenced McDonald’s decision, as a legal case in Illinois accused the company of violating state privacy laws related to AI drive-thrus. The case was dismissed last year, but it may have contributed to McDonald’s reevaluation of its AI initiatives. Moving forward, McDonald’s is considering alternative options for voice ordering solutions, potentially from different providers or through in-house development.
In light of these developments, the future of voice-activated AI in McDonald’s drive-thrus remains uncertain. The company is committed to enhancing its restaurant technology and aims to make an informed decision on a future voice ordering solution by the end of the year. McDonald’s may explore new opportunities for improving customer experience and operational efficiency through innovative technologies beyond its current partnership with IBM.
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https://www.theregister.com/2024/06/17/mcdonalds_ai_drivethru/