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McDonald’s and the Case for AIs Enhancing Workers, Not Replacing Them

McDonald's using AI in fast food orders

It’s probably not surprising that, as a business enterprise, the fast-food chain McDonald’s is always on the cutting edge of technology. As an international brand, the company prides itself on adopting the latest opportunities to maintain a competitive advantage. This is why it was among the first companies to embrace AI in fast food orders a few years back. For the past couple of years, McDonald’s has experimented with AI automated voice ordering leveraging a partnership with IBM. But interestingly, the company just announced that it would no longer be using its automated systems. While McDonald’s certainly didn’t say they were giving up on AI systems altogether, for now, they are shifting gears. It might be a sign that AI isn’t quite ready for primetime just yet.

McDonald's trying out AI in fast food orders
Experiments with AI in fast food orders have been… underwhelming.

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While there are many reasons for McDonald’s change of heart, one factor could be the accuracy rate of its AI automated voice ordering. A number of mishaps have been captured with viral videos on TikTok and elsewhere. Likewise, the use of AI in fast food orders still requires a fair amount of human assistance according to several fast-food chains. That doesn’t mean automation to some extent hasn’t allowed fast food workers to take on additional tasks to enhance the customer experience. And it certainly hasn’t yet suggested AI will completely replace the need for human resources. In fact, based on McDonald’s and other fast food restaurants’ experience, AI might actually enhance worker opportunities.

McDonald’s AI Automated Voice Ordering Experience

Believe it or not, McDonald’s has been experimenting with AI automated voice ordering since 2021. That’s well before ChatGPT made its debut in late 2022. The company partnered with IBM to put these AI systems in 100 of its restaurants to see if efficiency, accuracy, and profitability made them feasible. Interestingly, however, McDonald’s sold McD Tech Labs to IBM in 2023, and just recently stated it would part ways completely with IBM, on good terms. It can thus be assumed that its use of AI in fast food ordering to date does not substantiate the ongoing investment, at least of the current system. As a result, McDonald’s will be returning to “live” drive-thru’s staffed with real human beings for now.

Part of the reason that McDonald’s decided to backtrack on its AI automated voice ordering relates to system goof-ups. There have been several mistaken orders taken by these AI systems resulting in some comical outcomes. For example, one order charged customer $222 for hundreds of chicken McNuggets. Another order requested ice cream loaded with heaps of bacon, and yet another listed a handful of butter to be provided instead of a Big Mac. AI in fast food ordering for McDonald’s is reported to be around 85%. Likewise, it is estimated that human assistance was needed in one of every five orders. Combined with costs and the prospect of better systems in the future, McDonald’s decided to abort for the time being.

someone using a kiosk at McDonald's
Fast food restaurants still need people–the robots can only do so much.

Other Fast-Food Companies and AI

McDonald’s is not the only company using AI in fast food orders. In fact, several others in the industry have and are using AI automated voice ordering. These include Checkers, Rally’s, Wendy’s, Dunkin, as well as various versions of the Hardee’s restaurants. Despite McDonald’s decision to forego AI automation for the moment, these other chains are persevering. Some use a company called Presta Automation, which is notably struggling financially. Last reported, Presta was dealing with a $6 million debt repayment burden. The other AI automated voice ordering company is SoundHound AI. Used by White Castle restaurants, it seems to have a better reputation in the field. Based on this, it’s clear AI is prevalent in this sector.

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While AI in fast food orders may be common, that doesn’t necessarily mean it’s effective or cost-efficient. According to reports concerning Presta Automation, nearly a third of orders still require direct human interaction. The company has also been accused of its AI systems requiring remote outsourcing assistance from offsite workers in the Philippines. Some reports suggest as many as 70% of orders have some remote input. In terms of SoundHound, White Castle has reported its AI assistant, Julia, has been beneficial. The system has allowed the company’s employees to better focus on customer service and new tasks. And they deny having to reduce its staffing at all. At present, it would seem AI automated voice ordering has provided variable results.

Looking to the Next Chapter for Fast Food AI

AI automated voice ordering and a real person
AI automated voice ordering isn’t yet able to effectively replace actual people handling orders.

McDonald’s announcement to part ways with IBM may not be a sign of disappointment with AI automated voice ordering. Instead, it might be that the company sees a brighter future for AI in fast food orders. Reportedly, McDonald’s has been in talks with Google regarding AI systems use. An AI assistant platform, called “Ask Pickles,” was being considered on various customer-facing interactions. Not only did this involve AI automated voice ordering through drive-thru’s. But it also was being considered for mobile ordering and in-store kiosks. AI systems were also being assessed for McDonald’s hiring processes, kitchen robotics, and even drone delivery. If this turns out to be true, then McDonald’s is far from giving up on AI in fast food orders.

As an experiment in AI, however, the sector’s use of AI says a great deal about impacts on labor systems. Clearly, AI in fast food orders still requires a significant degree of human oversight and sometimes assistance. At the same time, companies like White Castle have leveraged AI automated voice ordering to redefine employee tasks. Accordingly, this shift has enhanced the customer experience and provided a higher value. It may also be inherently training workers new skills that they otherwise may not have time to acquire. All of this suggests that AI may not be as much of a displacer as it is an enhancer for various workforces. It’s too early to tell, but the fast-food industry’s experiences with AI look more favorably than expected.

 

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