Yelps Assistant chatbot will do all the talking to help users find service providers

McDonald’s is ending its drive-thru AI test

White Castle has been testing AI provided by speech recognition company SoundHound. And Carl’s Jr., Hardee’s, and others use AI drive-through tech that an SEC filing revealed was underpinned by remote human workers in the Philippines most of the time. In terms of the front-of-house experience, you see opportunity for technology to create automation in workflows but also create personalization.

Yelp says the chatbot also works with other services like massage therapists, pet care, real estate, or financial services. Yelp Assistant, powered by large language models from OpenAI, is available now in the iOS versions of its mobile app and will roll out on Android this summer. McDonald’s drive-thru AI initiative is just a part of its broader strategy to automate tasks traditionally handled by humans. The chain has also introduced mobile ordering and in-store kiosks, and it is testing drone deliveries, kitchen robotics, and unconventional AI-driven hiring tools. McDonald’s is pulling the plug on its AI-driven drive-thru ordering experiment, which has in some cases led to incorrect orders at various locations. The fast-food giant has informed franchisees that it will phase out the AI partnership it has currently with IBM by late July 2024, as reported by Restaurant Business.

She also covers the intersection between technology, finance, and the economy. Internet culture is chaotic—but we’ll break it down for you in one daily email. You’ll get the best (and worst) of the internet straight into your inbox. Outside of giant shrimp and satirical posts about the restaurant’s gratuity policy, Ethos also offers celebrity guest bartenders. Buford’s didn’t immediately respond to questions asking about its involvement with Ethos, and Ethos didn’t respond to questions about the association either. Ethos wasn’t actually on the James Beard Foundation’s 2024 list of award-winning restaurants and chefs.

The technology exists to recognize that Reed is here, and Reed might have or a family member might have an allergy, or what is Reed going to like on the menu. On the kitchen side, I don’t think robotics could do the last mile, in terms of what makes a chef a chef. When you go out to eat, you don’t realize how much manual work happens in the background. Scheduling staff, paying staff, tracking inventory, there’s so many workflows. Small restaurants typically spend between INR 7,000-15,000 for photoshoots that cover around 70% of their menu, the FE report said. Banking products and services are offered by Citizens Bank, N.A., Member FDIC.

The tech solution can take orders, make reservations, and answer customer questions like a concierge. The company described its “human-like voice agent” as friendly, fast, and available 24 hours a day. I tested the bot, and it truly felt like I was conversing with a real human. She was very conversational, using phrases like “take your time” and “absolutely” while processing my order. Miami-based Xina is a startup offering a voice ordering chatbot tailored for restaurants and hotels. At the show, the company demonstrated its voice bot for both kiosk and phone ordering.

Verge Deals

As part of this initiative, the company will provide professional photoshoots at a rate of INR 4,000-5,000, depending on the proportion of the menu that requires photography. When the proper AI solutions are implemented, they can revolutionise the foodservice industry, streamlining operations and improving customer satisfaction and loyalty. AI can make real-time upselling smarter, modifying suggestions based on inventory, time of day, and weather conditions.

We thought that by focusing on certain industries, we can help raise the bar for everyone. We also work really closely with experts and advocacy groups to bring in the latest thinking. We’re constantly tweaking the model, and literally everything we do has human oversight. It’s such a new space and a sensitive space, we feel it’s so important that we have human eyes on everything as well. Across all of those platforms, we’re looking for presence and screen time from a brand’s assets for different identity dimensions.

Fast-food chains have taken an immense interest in integrating generative AI into their systems in recent years. Along with McDonald’s, a range of other companies including Wendy’s, Hardee’s, Carl’s Jr, and Del Taco all use AI technology at their drive-thrus. Yum Brands, which owns Taco Bell and KFC, announced earlier this year that it was instituting an “AI-first mentality” in its fast-food restaurants. A spokesperson for McDonald’s told the publication that it would decide its plans for automated orders by the end of the year, but stressed that “a voice-ordering solution for drive-thru will be part of our restaurants’ future”. Hawes said the voice AI product is currently being used by a quick service chain with 300 drive thru locations in the US and Canada. Later this year, GiveX expects to launch its voice AI tech with more brands.

Finding Restaurants

As the restaurant industry grapples with labor shortages and seeks to streamline operations, AI voice ordering has emerged as a potential solution. With every product having an expiration date—some much shorter than others—restaurants need to ensure they have the freshest food on hand and that nothing spoils or goes to waste. Use AI to track ordering, use, and waste, then use AI to adjust ordering so that the right food is ordered and used in time. Use AI to analyze your menu and ordering as well to reduce food waste—why buy products for menu items that customers don’t order?

Bloomberg reported that part of this deal involved a chatbot named “Ask Pickles,” which employees could utilize for tasks like cleaning ice cream machines. Meanwhile, Google has already partnered with Wendy’s to test AI in drive-thrus, a trial that has grown since its inception last year. „IBM developed Automated Order Taker (AOT) technologies with McDonald’s to support the emerging use of voice-activated AI in restaurant drive-thrus,” a spokesperson for Big Blue told us.

Buzzworthy Brands

When AI drive-thru virtual assistants get their order wrong, or attempt to upsell too frequently, customers are likely to leave dissatisfied. With AI now being utilised across the food sector, Gopi Polavarapu explains how solution intelligence could transform fast food restaurant operations. Additionally, AI could be used to track and analyze kitchen food waste patterns and customer behavior, revealing which ingredients are often discarded and why. McDonald’s embrace of AI can be traced back to 2019, when it acquired the startup firm Apprente, which introduced AI-based voice solutions that can be used in customer service settings.

While generative AI has been a hot topic since late 2022, its benefits are not clear. Last month, Goldman Sachs released a report outlining a series of limitations of generative AI, including the massive investment in data centers, power grids and other infrastructure necessary to increase the efficiency of AI tools. One professor estimated that generative AI would only contribute 0.5% to labor productivity growth in the next decade, according to the report. Fast food giant pulls plug on AI-powered voice-ordering at about 100 outlets after viral videos of order mishaps. This feature, first rolled out in 2022, combines Street View and satellite images to provide an aerial view of a location, while also offering the ability to explore a city at street level. Some other updates include enhanced navigation that will show more details on the map when driving in select cities and updates to its Waze-like destination guidance features it previewed in July.

Creating The AI-Powered Restaurant Today

It is important for it to automatically adapt its vocabulary and language to match the user demographics, and respond to changes in customer voice tone, facial expressions, sentiments, and body language. This ability enables the AI to create tailored interactions, offering personalised menus, services, and solutions based on the users’ unique voice traits, sentiment and patterns. As the world quickly shifts toward an AI-first framework, the food and beverage industry is embracing cutting-edge technologies like conversational AI (CAI) and generative AI (GAI) to reshape the future of food services.

In the context of AI-driven interactions in the food industry, the drive-thru is a place for convenience and timely service. While upselling may be good for the business’ bottom line, ill-timed offers from a worker or an AI agent can result in customer dissatisfaction. Restaurants can leverage AI chatbots on their websites or through smartphone apps to take orders, make recommendations and resolve customer service issues. For example, if a customer logs onto your app to place an order, a chatbot could ask them what type of food they’re in the mood for and offer recommendations. Or you can use an AI chatbot in your phone ordering systems to reduce human error to get orders or reservations right every time.

Companies are launching uniqueAI robot chefs that prepare and cook food all by themselves at the push of a button. If you’ve been reading about AI and want some introductory hands-on experience on what it is and how to use it, Forbes’ free AI Life Hacks newsletter course will help you get it. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. If there was one reason for pause aired at the event, it was that restaurants could be moving too quickly with AI. Before a brand can even do that, though, it has to have the right foundation in place.

For example, it suggested visiting Cypress Mountain and Stanley Park on the same day, which would make sense because the route to the mountain cuts through the park. And it suggested visiting Garibaldi Lake, a challenging hike about 90 minutes away from Vancouver, as the only activity for that day. Also notable, the chatbot didn’t make suggestions for visits that are too far outside of Vancouver. Based on a prompt for activities focused around hiking and cultural experiences, the chatbot gave multiple suggestions for visits in and near Vancouver. A Skift test in 2023 of Meta AI’s chatbot — based on the second version of its AI model — showed the tool was lacking, especially compared to competitors.

• “Let’s take a few hats off of people and let them do what they do really, really well,” he said.
• Optimizing food ordering can not only save costs but can help your restaurant contribute to sustainability efforts as well.
• And as with any new technology, there were mishaps that amused, and sometimes frustrated, customers.
• By leveraging predictive analytics, AI can analyze past purchases and trending items to suggest additional dishes or drinks.

White Castle has implemented SoundHound’s AI voice system in 15 of its restaurants for drive-thru orders, aiming to enhance accuracy and efficiency while reducing staff pressure and customer rush. The technology, which White Castle plans to expand to over 100 locations by year-end, allows customers to place orders via an AI named Julia. Despite concerns about AI reliability and its impact on jobs, White Castle reports that the system has not reduced staff hours but rather allows employees to focus on food preparation and customer service. Moreover, Presto Automation faces scrutiny as filings reveal that over 70% of orders are completed by off-site human workers, notably in the Philippines. This practice contrasts with the company’s AI branding and raises concerns about transparency in AI-driven solutions across industries. Despite claims of automation, the reliance on human contractors raises questions about the true impact on labor in the restaurant industry’s adoption of AI technologies.

That test followed the company’s sale of its McD Tech Labs to IBM that year. But the company did not dismiss the prospect of drive-thru AI, suggesting that McDonald’s plans to find a new partner for its automated order taking efforts. “Is it possible we’re underestimating just how weird and disruptive the next 10 years will be? ” So said “futurist” Mike Walsh, who compared the dawn of artificial intelligence to the beginnings of electricity. One big factor in consumer satisfaction with third-party delivery orders is time. You may or may not consider convenience stores to be a competitor to fast-food chains, but a growing number of consumers do.

Using AI as a Tool to Boost Customer Satisfaction

The company’s text-to-order solution can increase revenue by 37% because the bots are taking every call. Voice-based AI ordering for drive-thru’s is improving order accuracy and speed of service, promoting consistent upselling and increasing restaurant productivity. In addition, AI-driven technology facilitates predictive analytics and data-driven decision-making, enabling restaurants to optimize inventory management and staffing levels.

Simply put, if the AI can’t handle an interruption or answer a question, it’s not so intelligent. Google Distributed Cloud, a combination of hardware and software, will be installed in thousands of McDonald’s locations, allowing them to use both cloud-based applications and localized AI solutions. AI and machine learning can be used to help categorize hundreds of millions of menu items. It can help benchmarking tools determine how to appropriately categorize specific items — such as whether a whiskey donut is a dessert or an alcoholic beverage.

For kiosk interactions, a consumer taps a button on the screen to engage the chatbot and then converses with it. Izabela Nad, director of operations, said operators are primarily interested in the phone order bot system, as it relieves staff from this task. She added that the software is compatible with restaurant drive-thru systems. The company is seeing demand in California, where the minimum wage for fast food workers recently jumped 25 percent to $20 an hour. Furthermore, many fast-food chains are exploring artificial intelligence to boost sales and efficiency, particularly in drive-thru operations. Presto Automation provides AI voice recognition technology to several major chains, including Checkers, Rally’s, Del Taco, Carl’s Jr., and Hardee’s, as well as digital ordering tablets to casual dining restaurants.

• He pointed to the bots’ order accuracy rate of around 93% and said that if a drive-thru headset failed  7% of the time, he’d get new headsets.
• Presto’s AI voice recognition, though advanced, still requires human intervention for order input and accuracy, managing only 30% of orders independently.
• Other fast food chains have also deployed AI technology to help streamline its customer service experience.
• In addition, AI-driven technology facilitates predictive analytics and data-driven decision-making, enabling restaurants to optimize inventory management and staffing levels.
• Embracing these technological innovations can help restaurants not only stay competitive but also thrive in a rapidly evolving market.
• In 2024, we are sure to see QSRs of all sizes implement the technology in their own ways.

After two years of testing, McDonald’s has ended its partnership with IBM to develop an artificial intelligence (AI)-powered drive-thru system. The collaboration, which aimed to change the fast-food ordering process by replacing human workers with voice-activated chatbots, had been a closely watched experiment in the industry. Meanwhile, White Castle believes its AI voice-recognition technology surpasses human accuracy.

Granted, like other similar ai tools, New York City’s chatbot offers a disclaimer that it can “occasionally produce incorrect, harmful or biased” information. Many, however, wonder if that’s enough warning to continue employing the tool. For example, one user testing the product was informed it was legal to serve restaurant patrons cheese that had been nibbled on by rodents. According to tests run by the Markup, the mistakes cover a range of topics, including housing policy, worker rights and regulations for businesses. In another video, TikTok user Madilynn Cameron filmed herself at a McDonald’s drive-thru ordering water and vanilla ice cream.

The $13 billion company makes software that acts as a kind of operating system for those businesses. It has also expanded into new areas like marketing and AI assistants, and now says it has so many restaurants signed up that half a percent of the country’s GDP runs through its systems. AI also empowers restaurants to deliver tailored experiences that resonate with the consumer. This customized approach fosters deeper consumer connections to the brand, enhances loyalty and can drive repeat visits.

People have the option of writing their own messages to selected businesses or having Yelp Assistant make one for them. After you review the final project request (generated based on what you asked for in your chat session), the bot can send it to service providers on your behalf, which Yelp says can result in better and more accurate price quotes. The restaurant industry is now leaning into technological advancements such as AI and automation to improve marketing, alleviate labor costs and inform vital investment decisions. 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.

McDonald’s Pauses Drive-Thru AI Chatbot Test Despite Growth in Voice Economy – PYMNTS.com

McDonald’s Pauses Drive-Thru AI Chatbot Test Despite Growth in Voice Economy.

Posted: Mon, 17 Jun 2024 07:00:00 GMT [source]

McDonald’s is ending its test of employing artificial intelligence chatbots at drive-thrus, raising questions over the fast food industry’s rush to roll out the technology. This New York City-based startup is using remote cashiers to take orders from kiosks or digital screens set up in drive-thru lanes. The remote cashiers will answer phones and respond to social media reviews. CEO Chi Tsang said remote cashiers work at one location at a time and provide a friendly face for a customer, which he believes is a better solution than voice bots. “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, told franchisees in an email obtained by Restaurant Business. The test has been taking place in about 100 McDonald’s locations since IBM and McDonald’s first formed their partnership in October 2021.

However, the chatbot has been giving out illegal – and rather absurd – advice, including telling employers it’s acceptable to take workers’ tips and fire pregnant workers, while advising landlords to discriminate based on income. In a statement, IBM said it is talking with other fast-food chains for the use of the technology. In a statement to Restaurant Business, McDonald’s said the goal of the test was to determine if automated voice ordering could speed service and simplify operations.