McDonald’s Ends Contract With IBM For AI-Powered Ordering

McDonald's has ended its automated drive-through ordering, coinciding with the company's contract with IBM ending....
McDonald’s Ends Contract With IBM For AI-Powered Ordering
Written by Matt Milano
  • McDonald’s has ended its automated drive-through ordering, coinciding with the company’s contract with IBM ending.

    McDonald’s began testing AI-powered ordering in 2021, relying on IBM to power the technology. The company has reportedly ended its contract with IBM, also ending the AI-powered ordering.

    “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 an email sent to franchisees that was obtained by Restaurant Business. “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.”

    The company is continuing to hold out the possibility of a return to AI-powered ordering in the future, saying it will make “an informed decision on a future voice ordering solution by the end of the year.”

    Interestingly, McDonald’s also emphasized to the outlet that its canceled contract with IBM only pertains to this specific application, and that IBM remains a “trusted partner and we will still utilize many of their products across our 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 in a statement to Restaurant Business. “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 told Restaurant Business that it was shopping its technology to other restaurants.

    “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.”

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