Restaurant operators are turning to artificial intelligence (AI) to lower labor costs, with 16% planning to invest in AI, particularly voice recognition technology. Large chains are leading the investment due to rising labor costs and a shift towards drive-thru lanes. California's wage hike for fast-food workers has further incentivized operators to embrace technology. However, McDonald's decision to end its trial of Automated Order Taker, an AI technology for drive-thru lanes, has highlighted challenges in AI adoption. The technology, including IBM's Automated Order Taker, faced difficulties in interpreting accents and dialects, leading to order accuracy issues. Despite this setback, IBM's stock rose as analysts praised its AI advancements. Other major players like Chipotle and Starbucks are also leveraging AI in their operations, with Chipotle testing AI systems for food production monitoring and customer interactions, and Starbucks using AI for inventory management and personalized customer experiences. McDonald's move to end its AI drive-thru trial comes as videos of order mix-ups, including bacon being added to ice cream, went viral. The decision reflects the challenges and limitations of AI in complex tasks like order-taking, while also suggesting potential future improvements. This development underscores the evolving landscape of AI adoption in the restaurant industry, with both successes and setbacks shaping the path forward.
