McDonald's Ends Drive-Thru AI Test with IBM, Eyes New Partnership for Future Tech

McDonald's is discontinuing its two-year-old drive-thru AI test with IBM, aiming to find new partnerships for future automated order-taking technology. The fast-food giant remains optimistic about implementing AI-powered drive-thrus with a different vendor.

McDonald's Ends AI Drive-Thru Test with IBM, Seeks New Partnership for Voice Ordering Solutions

McDonald's intends to discontinue its two-year-old automated order-taking (AOT) demonstration of drive-thru technology, which it has been conducting in collaboration with IBM. The technology will be removed from over 100 restaurants that utilize it.

According to an email distributed to franchisees on June 13 (via Restaurant Business Magazine), the Chicago-based fast-food conglomerate concludes this experiment with no expansion. Restaurant Business has obtained a copy of the correspondence.

However, McDonald's did not rule out the possibility of drive-thru AI, indicating that the company intends to establish a new partnership to support its automated order-taking initiatives.

“While there have been successes to date, we feel there is an opportunity to explore voice ordering solutions more broadly,” Mason Smoot, chief restaurant officer for McDonald’s USA, said in the system message. “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.”

Smoot stated that the organization will persist in assessing its strategies to render an "informed decision"regarding a prospective voice-ordering solution by the end of the year.

McDonald's has been conducting drive-thru voice AI testing since 2021. That test was conducted after the company sold its McD Tech Labs to IBM that year.

McDonald's stated to Restaurant Business that the objective of the test was to ascertain whether automated voice ordering could expedite service and streamline operations.

In its statement and the message to operators, the company underscored that IBM is a "trusted partner" and will continue to employ many of its products throughout its global system.

“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 and will continue to evaluate long-term, scalable solutions that will help us make an informed decision on a future voice ordering solution by the end of the year.”

IBM Discusses AI Drive-Thru Technology with Other Fast-Food Chains as McDonald's Ends Current Test

IBM announced in a statement that it is in discussions with other fast-food franchises regarding the utilization of the technology.

“IBM developed automated order taker technologies with McDonald’s to support the emerging use of voice-activated AI in restaurant drive-thrus,” the company said. “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.”

“While McDonald’s is reevaluating and refining its plans for AOT, we look forward to continuing to work with them on a variety of other projects.”

McDonald's has implemented a deliberate strategy regarding drive-thru AI, even though numerous other restaurant chains have implemented it without hesitation. Checkers and Rally's, Hardee's, Carl's Jr., Krystal, Wendy's, Dunkin', and Taco John's are either in the process of testing or have already implemented the technology in their drive-thrus.

The company's objective is to automate the process and eliminate the necessity for an employee. This can allow the establishments to operate with fewer employees or reallocate those workers to other responsibilities.

However, concerns regarding the accuracy of the orders have raised doubts about the technology's readiness for prime time.

Nevertheless, McDonald's remarks regarding the future of voice-activated AI indicate that the company was sufficiently confident in its prospects to proceed, albeit with a different vendor. “IBM has given us confidence that a voice ordering solution for drive-thru will be part of our restaurant’s future, and we want to sincerely thank IBM and the restaurant teams that have been part of this crucial test,” Smoot said in his message.

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