Operational Pivot

McDonald’s To End Successful AI Drive-Thru Pilot With IBM, Seeks New Partners

By Noah Weidner
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Would you like your large fries with a side of AI? McDonald’s has been trying to find out for the last few months. The fast-food titan partnered with IBM to test artificial intelligence order-taking at 100 US locations. Despite the success, the company is undoing the effort — and looking for a new partner.

  • McDonald’s management told analysts, “A voice-ordering solution for drive-thru will be part of our restaurants’ future” as they plan to wind down the current AI by Jul. 26.
  • Given their past collaborations, McDonald’s may consider expanding its partnership with Google or exploring other options like SoundHound, which has built similar products for competing chains.

Race to replace: Labor costs have soared in the fast-food industry, exasperated by California’s new minimum wage law setting a $20 per hour minimum for fast-food workers. This has driven companies to look for ways to automate simpler tasks. Ordering is one of these tasks, with competitors like Wendy’s and White Castle also embracing AI — but in some cases, the “robot” taking your order might just be outsourced workers.