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Project

McDonald's shut down IBM-designed chatbot to take orders over multiple complaints about it

Customers: McDonalds

Tourism, Hospitality and Restaurant Business

Contractors: McD Tech Labs, IBM


Project date: 2022/05

Content

2024: Chatbot outage

In mid-June 2024, it became known that a fast food chain McDonald's operating on a franchise system turned off a chatbot to accept orders developed by the corporation. IBM One of the reasons for this decision is numerous complaints about the artificial intelligence system from customers.

McDonald's has been using IBM's chatbot since 2021. The technology was introduced in more than 100 establishments. However, according to the industry publication Restaurant Business, the restaurant chain is ending its cooperation with IBM in the field of automated orders "no later than July 26, 2024." At the same time, McDonald's says that the AI technology for accepting orders at Mac Auto may become "part of the future" of the company's establishments.

McDonald's disables order-taking chatbot developed by IBM corporation

In December 2023, it was reported that McDonald's was collaborating with Google to introduce generative AI in its restaurants. This, in particular, is about the use of a chatbot called Ask Pickles, which is designed to help employees with everyday tasks. For example, workers can receive recommendations and instructions for cleaning equipment, such as ice cream machines.

In addition, McDonald's can use AI tools to process huge amounts of data in order to optimize operations. One of the results, it is claimed, will be an increase in the speed of serving visitors. AI algorithms will also help automate certain processes. At the same time, McDonald's does not directly indicate whether it is planned to replace some of the employees with systems based on artificial intelligence in the future. Instead, the company says the new technologies will reduce the burden on employees and "provide exciting new experiences for customers."[1]

2022: Program Implementation

On May 30, 2022, IBM said it was rolling out its natural language processing program to more McDonalds restaurants months after it acquired an automated order processing system from the fast food chain with McD Tech Labs, which developed it.

Chatbots were tested at 10 McD restaurants in Chicago, and people were reportedly not required to interfere with about 4 out of every 5 orders made using AI bots, reports The Register.

Orders in "Mac Auto" began to accept chatbots

Speaking at a conference, Rob Thomas, IBM's senior vice president of global markets, noted that the company "took on a business with which McDonalds had certain difficulties related to orders."

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We can use our natural language processing technology, which is very good, to complement McDonalds technology, "he said, adding: We are now starting to implement this technology in many of their stores, and ultimately in all.
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We can make all takeout orders without requiring human intervention, this provides big savings for franchisees through software capabilities, AI and creativity.
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Commenting on the sale of McD Tech Labs, McDonalds CEO Chris Kempczinski noted that this is about transferring the developments "to a partner who can then inflate them and scale them globally."

He said he was pleased with the success of 100 employees who worked at McD Tech Lab, who he said were transferred to IBM.

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But there is still a lot of work to be done on the introduction of other languages, ensuring the possibility of working with 14 thousand restaurants with all different menu options, etc. And this work goes beyond the scale of the company. And that work goes beyond our core remit, "Kempczynski added.[2]
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Notes