Mcdonald's Ends Test Run of AI Drive-Through Technology with IBM

In a surprising turn of events, McDonald's has announced the discontinuation of its AI drive-through technology partnership with IBM. The fast-food giant has made the decision to end the test run of its Automated Order Taker in over 100 restaurants, with the technology set to be deactivated by July 26.

The decision to terminate the partnership with IBM stems from McDonald's desire to explore voice ordering solutions more extensively. While acknowledging the successes achieved thus far, the company expressed a need for a broader exploration of voice ordering solutions.

Future Considerations

Despite this development, McDonald's has not completely ruled out the potential for AI drive-through plans in the future. The company expressed confidence in the integration of a voice ordering solution for drive-throughs, emphasizing that it will continue to evaluate long-term, scalable solutions. McDonald's aims to make an informed decision on a future voice ordering solution by the end of the year.

Partnership with IBM and Future Prospects

Following the conclusion of the AI technology test, McDonald's and IBM will collaborate on other projects, demonstrating their ongoing partnership. Additionally, IBM is currently engaged in discussions and pilots with several Quick-Serve Restaurant clients who have shown interest in the Automated Order Taker technology.

It is noteworthy that McDonald's had previously sold its McD Labs technology to IBM in 2021, signifying a shift in its technological assets. Furthermore, the company also divested Dynamic Yield, a predictive ordering technology, to Mastercard in late 2021.

McDonald's and Google Partnership

While the specifics of their collaboration remain undisclosed, McDonald's announced a new partnership with Google Cloud at an investor day event in December. The potential utilization of Google's generative AI, cloud, and edge computing tools to enhance the dining experience has generated considerable interest.

Analysts have noted that franchisees expressed frustration with the infrequent updates and underwhelming performance of the AI technology. Concerns regarding the accuracy and operating costs have also been raised, with speculation about Google potentially replacing IBM as the company's AI vendor.