McDonald & # 39; s could soon use AI to create personalized menus & # 39; s to boost sales after purchasing the Israeli machine-learning startup for $ 300 million
- McDonald & # 39; s bought Dynmic Yield, an A.I. driven technology company in Israel
- The restaurant says the purchase will personalize the menus and boost sales
- Dynamic Yield can change menus based on time, location, preference and more
McDonald & # 39; s wants to boost sales through A.I. to use. backup software with which products can be adapted to customers in real time.
The most iconic fast food chain in America has announced it has acquired an Israeli company, Dynamic Yield, whose software will use machine learning to customize digital menus to characterize products based on time, location, preference, demand. and more.
The Wall Street Journal reported that McDonald & # 39; s deal to purchase Dynamic Yield was closed for $ 300 million, but neither company has confirmed this.
McDonald & # 39; s has renewed its image all over the world by implementing a mobile app, renovating stores and buying a technology company to personalize menu items.
WHAT IS DYNAMIC RETURN?
McDonald & # 39; s buys the Israeli company Dynamic Yield, which uses data and analysis to increase sales.
The technical company helps McDonald & # 39; s develop dynamic menus & # 39; s that can match products according to time, location and even weather.
McDonald & # 39; s purchasing the company is likely a response to increased competition in US markets.
A representative did not respond to a request for comment prior to publication.
According to Dynamic Yield, the software is implemented on McDonald's outdoor drive-thru menus, the restaurant's mobile app, and digital order kiosks in stores.
On the Dynamic Yield website, the company describes a mix of services that use data and analysis to measure and respond to consumer behavior and preferences.
His testimonials offer a significant increase in sales and engagement for brands in online retail and more.
McDonald & # 39; s says it plans to roll out Dynamic Yield's technology in its stores this year.
& # 39; With this acquisition we are both expanding our capacity to increase the role of technology and data will be used in our future and the speed with which we can implement our vision to create more personal experiences for our customers & # 39 ;, said Steve Easterbrook, President and CEO of McDonald's in a statement.
While McDonald & # 39; s reported revenue growth in 2018, which the company attributes to mobile app delivery and ordering, shopping in the US – the main restaurant market – has declined.
Breakfast in particular was a concern, according to an ABC News report.
With additional competition from direct rivals such as Taco Bell, McDonald's has lost its share of customers in the morning.
Time, location, weather and preference are factors used by Dynamic Yield to adjust menus.
To avoid the & # 39; stickiness & # 39; of the brand, the company has launched a vast and costly refurbishment of its stores around the world for an amount of $ 1.4 billion in 2018 for its US stores only.
The company expects to spend another billion dollars this year, says ABC.
In a statement on the acquisition of Dynamic Yield, McDonald & # 39; s said the newly purchased technology company would remain intact and serve its many customers, including Urban Outfitters, PacSun and meal delivery service, Hello Fresh.
HOW CAN ARTIFICIAL INTELLIGENCE LEARN?
AI systems are based on artificial neural networks (ANNs), which try to simulate how the brain works to learn.
ANNs can be trained to recognize patterns in information – including speech, text data or visual images – and form the basis for a large number of developments in AI in recent years.
Conventional AI uses input to learn an algorithm on a specific topic & # 39; by giving it enormous amounts of information.
AI systems are based on artificial neural networks (ANNs), which try to simulate how the brain works to learn. ANNs can be trained to recognize patterns in information – including speech, text data or visual images
Practical applications include Google's translation services, Facebook's face recognition software and Snapchat's image-changing live filters.
Entering this data can be very time-consuming and is limited to one type of knowledge.
A new breed of ANNs called Adversarial Neural Networks pits the wits of two AI bots against each other, allowing them to learn from each other.
This approach is designed to speed up the learning process and refine the output of AI systems.