McDonald's momentarily suspends AI-driven drive-thru orders.
Fast Food Giant McDonald's Announces End of Partnership with IBM for AI-Driven Ordering Tech
McDonald's, in collaboration with IBM, had been working on AI-powered ordering technology at some of its restaurants as part of a global partnership. However, the fast-food chain is still exploring AI solutions, even as its competitors are also investing heavily in AI. The two-year-old project with IBM might have become outdated given the rapid advancements in AI technology.
By July 26, 2024, McDonald's will discontinue using the AI technology in restaurants that were part of the test, according to Restaurant Business. Despite ending the partnership, McDonald's maintains IBM as a trusted vendor for other products across its global system. The company seems open to exploring AI partners other than IBM.
The partnership between McDonald's and IBM started in 2021, with the development of Automated Order Taking (AOT) technology to improve the ordering experience for customers and restaurant teams as part of McDonald's "Accelerating the Arches" growth plan. IBM claimed the AOT technology produced by the partnership had some of the most advanced capabilities in the industry, capable of working accurately under demanding conditions.
IBM expressed optimism about continuing to collaborate with McDonald's on various projects, even as the fast-food chain reviews and refines its AOT plans.
Moving ahead, McDonald's aims to develop long-term, large-scale solutions for a voice-ordering solution by the end of 2024. McDonald's isn't the only fast-food chain experimenting with AI. White Castle tested an automated drive-thru ordering system in 2021, while Wendy's partnered with Google Cloud to roll out its AI ordering tool last May.
Though fast-food companies are keen on integrating AI-powered solutions into their operations, the technology still faces challenges. Customers have complained about AI misinterpreting orders due to its inability to recognize certain accents and differentiate voices from background noise.
CNN's Rachel Metz and Danielle Wiener-Bronner contributed to this report.
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In light of the rapid advancements in AI technology, McDonald's decided to discontinue the use of its AI-driven ordering tech in selected restaurants, developed in partnership with IBM. Despite ending this specific collaboration, McDonald's continues to view IBM as a trusted vendor for various products within its global system, indicating an interest in maintaining a business relationship with tech companies.
