McDonald’s has officially terminated its global partnership with IBM, bringing an end to the joint effort to implement artificial intelligence (AI) technology in select drive-thru locations, which began in 2021.
While McDonald’s is winding down its current automated order taker test with IBM, the company from Chicago hinted at potential future AI-driven drive-thru plans, emphasizing a broader exploration into voice ordering solutions.
Across the fast food industry, numerous chains have increasingly turned to AI to streamline operations, aiming to enhance speed and reduce costs. In the U.S., Wendy’s has collaborated with Google Cloud to develop the “Wendy’s FreshAI” chatbot. White Castle partnered with SoundHound AI to introduce voice-powered technology, named “Tori,” in over 100 restaurants by the end of 2024. Additionally, select Panera, Arby’s, and Popeyes locations have adopted OpenCity’s voice assistant.
Internationally, Popeyes U.K. recently launched its AI-powered drive-thru named “Al,” following a successful pilot program that reported a 97% accuracy rate.
Despite these advancements, the success of AI-powered drive-thrus has been variable. McDonald’s faced challenges with its automated order taker developed with IBM, encountering numerous customer complaints about order inaccuracies. Social media platforms documented instances where the chatbot misinterpreted orders, including a notable TikTok video showing repeated orders for chicken nuggets despite customer requests to stop.
Sources familiar with the technology revealed difficulties with accents and dialects, contributing to order accuracy issues. McDonald’s declined to comment on the accuracy of its automated order taker.
While ending the AI drive-thru partnership, IBM noted ongoing discussions and pilot programs with other quick-serve restaurant clients interested in adopting similar technology.
According to reports from Restaurant Business and CNBC, a memo sent to franchisees indicated that McDonald’s will deactivate the automated order technology in test locations by July 26, 2024.
Both IBM and McDonald’s affirmed their intention to continue collaborating on other projects despite concluding their AI drive-thru initiative. McDonald’s highlighted its ongoing utilization of IBM products throughout its global system, following a separate partnership established with Google Cloud in December. This alliance aims to leverage generative AI for various operational priorities across McDonald’s restaurants worldwide.