McDonald's removes AI chatbot it partnered with IBM to use for drive-thru orders

McDonald's partnered with IBM to test an AI chatbot that can automatically take orders at its drive-thrus, but the company plans to remove the technology from its stores, according to a report by

https://www.restaurantbusinessonline.com/technology/mcdonalds-ending-its-drive-thru-ai-test

McDonald's will stop testing AI to take drive-thru orders, for now - The Verge
https://www.theverge.com/2024/6/16/24179679/mcdonalds-ending-ai-chatbot-drive-thru-ordering-test-ibm

In October 2021, McDonald's announced a strategic partnership with IBM to introduce automated order taking (AOT) technology to its drive-thrus using natural language processing technology from IBM Watson , IBM's AI service.

McDonald's teams up with IBM to automate drive-thrus - GIGAZINE

McDonald's had introduced AI AOT, developed in collaboration with IBM, in more than 100 stores in the United States, but it has become clear that it plans to remove it.

McDonald's sent an email to franchisees across the U.S. on Thursday, June 13, 2024 (local time) informing them that it plans to end the test without further expansion of AI AOT. Mason Smoot, McDonald's Chief Restaurant Officer, said in the email, 'While we have seen success to date, we feel there is an opportunity to explore voice ordering solutions more broadly. After careful consideration, McDonald's has decided to end our current partnership with IBM on AOT and will stop the technology in all test locations by July 26, 2024.'

Meanwhile, McDonald's does not appear to be completely ending its efforts to introduce AI to its drive-thrus to automate tasks. 'Our collaboration with IBM gives us confidence that a drive-thru voice ordering solution will be part of the future of our restaurants. We will continue to evaluate long-term, scalable solutions that will help us make an informed decision about our future voice ordering solution by the end of the year,' the company said.

McDonald's has been working on developing AI-based AOT technology since 2021, which began when the company sold its AOT development division, McD Tech Labs, to IBM. Regarding its partnership with IBM, McDonald's has stated that 'IBM is a trusted partner and will continue to use the company's products extensively throughout McDonald's global system.'

IBM said of the AI AOT developed in collaboration with McDonald's, 'The technology has some of the most comprehensive capabilities in the industry and has been proven to be fast and accurate in the most demanding situations.' The company also revealed that it is in discussions to provide the technology to other fast food chains besides McDonald's.

Fast food chains other than McDonald's are promoting the introduction of AI technology to their drive-thrus, but McDonald's seems to be taking a fairly cautious approach to the introduction of AI technology. It is believed that the introduction of AI technology will lead to reduced labor costs and improved employee work efficiency.