FX.co ★ McDonald's To Shut Down AI-powered Drive-thru Ordering Trial

McDonald's Corp. (MCD) has decided to terminate its two-year trial of AI-powered automated order-taking (AOT) in collaboration with IBM.

Over 100 restaurants had employed this technology, but customer complaints about receiving incorrect items, such as nine sweet teas in a single order and a bacon-topped ice cream cone, prompted the decision to discontinue it. Numerous videos on TikTok feature puzzled customers receiving unexpected items they never ordered.

The company has informed its franchisees that it will end its AI drive-thru ordering partnership with IBM by “no later than July 26th, 2024,” according to a report by the trade publication Restaurant Business. Mason Smoot, McDonald's USA's Chief Restaurant Officer, mentioned that the company will review its strategies to make an informed decision on a future voice-ordering solution by the end of the year.

Conversely, IBM has expressed its readiness to collaborate with other fast-food chains to implement this technology. The company stated, "While McDonald's is re-evaluating and refining its plans for AOT, we look forward to continuing to work with them on a variety of other projects."

Despite this setback, McDonald's is exploring methods to enhance service efficiency through voice-ordering technology and remains optimistic about integrating it into their future operations. This suggests that McDonald's plans to seek a new partner for its automated order-taking initiatives.