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McDonald’s ends AI drive test as fast food industry tests automation

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McDonald's ends AI drive test as fast food industry tests automation

McDonald’s is wrapping up its trial of employing AI chatbots in drive-thrus, raising questions about the fast-food industry’s rush to implement the technology.

The world’s largest burger chain will remove AI-based automated ordering systems from more than 100 locations in the US.

The systems, which featured an AI voice that responded to customer requests, had been tested as part of a deal between McDonald’s and IBM that began in 2021.

McDonald’s gave no public reason for ending its trial, according to the restaurant businesstelling franchises that it would close the technology on July 26.

A McDonald’s spokesperson told the publication that it would decide its plans for automated ordering by the end of the year, but noted that “a voice ordering solution for drive-thru will be part of the future of our restaurants.”

In recent years, fast food chains have shown immense interest in integrating generative AI into their systems. Along with McDonald’s, other companies including Wendy’s, Hardee’s, Carl’s Jr and Del Taco are using AI technology in their drive-thrus. Yum Brands, owner of Taco Bell and KFC, announced earlier this year that it was instituting an “AI first mentality” in their fast food restaurants.

The fast food industry’s growing affinity for AI comes as companies see the technology as a means to replace human workers to reduce rising labor costs. After California passed a new mandatory minimum wage law for fast food workers, companies rushed to implement AI technologies who could perform tasks such as taking customer orders.

While companies have touted AI as the future of the fast food industry, these technologies have also led to viral videos and Media coverage document when they receive incorrect orders. AI glitches at McDonald’s drive-thru circulated on TikTok last year after several videos purported to show the system adding erroneous items like packets of butter or multiplying the number of items ordered.

Another video showed two women laughing uncontrollably and asking the system to stop adding items to their order as it appeared to put hundreds of dollars worth of McNuggets into their account.

While automated systems have faced backlash for misinterpreting customer orders, some have also come under scrutiny for relying on outsourced human labor to operate. The company Presto Automation Inc, which provides artificial intelligence services for fast food chains, revealed in an SEC filing last year which employs workers in countries like the Philippines to participate in customer interactions approximately 70% of the time.

In addition to drive-thru orders, some companies have begun to explore how you could use generative AI to develop digital chatbots in your apps or use image recognition to determine wait times.

McDonald’s struck a deal with Google in December last year to create a chatbot called “Ask Pickles” that could train employees on topics such as how to clean restaurant equipment. The companies also agreed to work on other potential uses of generative AI. according to Bloomberg.

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