Benzinga - by Chris Katje, Benzinga Staff Writer.
Leading fast food chain McDonald's Corp (NYSE:MCD) is ending a drive-thru test that utilized artificial intelligence technology.
What Happened: With the growth in artificial intelligence use cases, the restaurant sector is looking for ways it can use the technology to boost productivity, help with job shortages and improve the customer experience.
Customers who order fast food often want it quick, with the right items and at the proper temperature. Upset customers who have experienced trouble with correct orders from the drive-thru may find out that AI couldn't get their order correct.
McDonald's is ending a test of AI in its drive-thrus, according to a report from Restaurant Business. The partnership with International Business Machines (NYSE:IBM) used AI to test automated order-taking at more than 100 locations.
The report said McDonald's did not explain why it was ending the test and emailed franchisees last week.
"While there have been successes to date, we feel there is an opportunity to explore voice ordering solutions more broadly," McDonald's USA Chief Restaurant Officer Mason Smoot said in the email viewed by Restaurant Business. "After a thoughtful review, McDonald's has decided to end our current partnership with IBM on AOT and the technology will be shut off in all restaurants currently testing it no later than July 26, 2024."
McDonald's may not be done with future AI use cases in its drive-thrus with Smoot saying the company would look to make "an informed decision on a future voice ordering solution by the end of the year."
The restaurant company has been testing AI drive-thru voice technology since 2021, according to the report.
McDonald's told Restaurant Business the goal of the drive-thru tests was to see if automated voice ordering could help speed up service.
Related Link: AI Gunning For Fast Food Jobs Next? KFC, Taco Bell Operator Yum Brands Planning ChatGPT-Like Bots To Boost Operations
What's Next: The restaurant company said IBM will remain a "trusted partner" with several products from the technology giant utilized in its global systems.
"As we move forward, our work with IBM has given us the confidence that a voice-ordering solution for drive-thru will be part of our restaurants' future," McDonald's said. "We see tremendous opportunity in advancing our restaurant technology."
IBM said it is talking to other fast food companies about the potential use of the drive-thru technology.
"This technology is proven to have some of the most comprehensive capabilities in the industry, fast and accurate in some of the most demanding conditions," IBM said in a statement.
McDonald's is not the only company that had been testing or using drive-thru AI technology. Restaurant Business names Checkers, Hardee's, Carl's Jr., Wendy's, Dunkin’ and Taco Johns as companies that are using or testing AI technology in drive-thrus.
The Verge reported that White Castle was testing AI technology from publicly traded SoundHound AI Inc (NASDAQ:SOUN).
McDonald's announced a deal with Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) owned Google in December for a chatbot named "Ask Pickles." The technology was expected to help with hardware and software enhancements to improve operations.
Google also partnered with Wendy's on drive-thru AI technology.
McDonad's doesn't appear to be shying away from using AI in its drive-thrus, but perhaps looking for a new partner like Google. Future details could point to why McDonald's moved on from IBM and who they chose next.
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