McDonald's Suspends AI Drive-Thru Test With IBM

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Facts

  • Fast-food restaurant franchise McDonald's plans to end its artificial intelligence (AI)- powered drive-thru Automated Order Taker (AOT) partnership with IBM by July 26. The AI-based order systems have been deployed at over 100 US locations.1
  • While the test was aimed at simplifying operations, customers reported multiple ordering blunders with the AI bot. However, McDonald's said the pilot program, which began in 2021, gave it 'confidence' that AOT will be used in the future.2
  • McDonald's drive-thru AI failures included an instance where an AI cashier mistakenly assumed a customer ordered hundreds of dollars of chicken McNuggets and another where a customer was given an ice cream with bacon on top.3
  • Apart from McDonald's, Wendy's, Hardee's, Carl's Jr, and Del Taco have used AI chatbots at their drive-thrus. The transition to AI comes after some US states, including California, passed higher minimum wages for fast-food workers, allegedly pushing companies to replace employees with AI.4
  • IBM, to which McDonald's sold its McD Labs technology in 2021, said it will continue to work with the fast-food chain on 'a variety of other projects.' It's also in partnership talks with several Quick-Serve Restaurant clients.1
  • Last December, McDonald's also partnered with Google to create an AI chatbot called 'Ask Pickles,' which it said could help train its workers. Other companies are trying to use AI in their mobile apps and for facial recognition to determine wait times.4

Sources: 1NBC, 2CBS, 3Axios and 4Guardian.

Narratives

  • Pro-establishment narrative, as provided by Forbes. AI is revolutionizing the restaurant industry for the betterment of customers. From perfectly made food to personalized menus, restaurant-goers have expressed high satisfaction with the quality of service and cuisine. With automation now covering the basics, the next step will be to use virtual reality to give customers immersive dining experiences at their fingertips.
  • Establishment-critical narrative, as provided by TVO Today. Technology has been used to increase customer satisfaction, such as high-tech French fry makers, but never at the cost of so many jobs or privacy. AI is about replacing all cashier jobs while using personalized menus and foot traffic detection to encourage customers to buy more at a higher price. The goal is to increase the bottom line, not worker or customer satisfaction.

Predictions