McDonald's Ends Partnership with IBM for AI Voice Ordering at Drive-Thrus

McDonald's Ends Partnership with IBM for AI Voice Ordering at Drive-Thrus

McDonald's has decided to discontinue the use of IBM's AI-powered voice ordering technology at its drive-thru kiosks. The fast-food giant had implemented the automated order-taking (AOT) system in over 100 locations but has chosen not to renew the partnership. Instead, McDonald's plans to explore alternative voice AI solutions from other vendors.

According to Restaurant Business, McDonald's was satisfied with the trials but is seeking broader opportunities in voice ordering technology. "While there have been successes to date, we feel there is an opportunity to explore voice ordering solutions more broadly," said Mason Smoot, McDonald's chief restaurant officer, in a message to franchisees.

The AOT systems will be deactivated by July 26, with plans for new technology expected to be unveiled by the end of the year.

McDonald's initially acquired AI voice startup Apprente in 2019 and integrated it into McD Tech Labs, a research unit later sold to IBM in 2021. The collaboration with IBM aimed to enhance the drive-thru experience using AI voice technology, and trials have been ongoing since then.

McDonald's joins a growing list of fast food chains, including White Castle, Del Taco, Hardee’s, and Checkers, in exploring generative AI to improve the drive-thru experience. These technologies process customer orders and automate part of the ordering process, with human operators stepping in if the AI encounters difficulties. The goal is to allow on-site staff to focus on fulfilling food orders.

Despite the initial promise, McDonald's AI voice system has had notable failures, some of which went viral on social media. One such instance involved a woman ordering water and vanilla ice cream but receiving packets of ketchup and butter instead.

While McDonald's has not announced any new potential partners, it revealed a strategic partnership with Google Cloud last December. This collaboration aims to leverage AI technologies to enhance customer experiences, restaurant operations, and employee support. Google Cloud is already powering Wendy's FreshAI order-taking solution, which began trials in Columbus, Ohio, and has since expanded to more locations.

McDonald's decision to end the partnership with IBM underscores its commitment to finding the most effective AI solutions to improve its drive-thru service.