McDonald's Moves Away from IBM's AI Ordering Technology, Pursues Innovative Drive-Thru Solutions

McDonald's has opted to discontinue its use of AI-powered voice ordering technology from IBM at drive-thru kiosks. The fast-food chain had previously deployed the automated order-taking (AOT) system at over 100 locations, but has chosen not to renew its partnership with IBM. Instead, McDonald’s is set to explore alternative voice AI solutions from other vendors.

Mason Smoot, McDonald’s Chief Restaurant Officer, communicated to franchisees that while the trials with IBM’s system showed promise, there is potential for broader opportunities in voice ordering technology. The AOT systems are scheduled to be deactivated no later than July 26, and McDonald’s is expected to announce plans for a new solution by the end of the year.

In 2019, McDonald's acquired the AI voice startup Apprente, which was integrated into McD Tech Labs—a technology innovation unit that was later sold to IBM in 2021. That same year, it was announced that McDonald’s would implement the AI voice technology in its drive-thrus, with ongoing trials since then.

As one of several fast-food chains enhancing the drive-thru experience with generative AI, McDonald's joins players like White Castle, Del Taco, Hardee’s, and Checkers in leveraging innovative technologies. These generative AI systems streamline the order process by converting customer requests into electronic orders, with human operators on hand to assist if the AI encounters challenges, such as misinterpreting a customer’s voice.

However, McDonald's AOT technology has faced scrutiny, with several instances of incorrect orders going viral on social media. One notable incident involved a customer who ordered water and vanilla ice cream but received packets of ketchup and butter instead.

While no new partners have been officially announced yet, McDonald’s has disclosed a strategic partnership with Google Cloud. This collaboration, initiated last December, aims to utilize AI technologies to enhance customer experiences and improve operations for restaurant teams and employees. Google Cloud is also behind Wendy’s FreshAI order-taking solution, which began trials at a Wendy’s location in Columbus, Ohio, last summer, and has since expanded to additional sites.

This strategic pivot reflects McDonald's commitment to innovating its operations and improving customer interactions through advanced technology, ensuring a more efficient and pleasant drive-thru experience for customers in the future.