McDonald’s (NYSE:MCD) has had enough of AI, for now. The restaurant giant is halting a test run of AI ordering assistants in drive-throughs at over 100 of its locations.
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Despite the Pause
The AI technology was part of McDonald’s (MCD) partnership with IBM (NYSE:IBM) that began in 2021. The two companies aimed to speed up operations with voice-activated ordering. However, the AI solution faced challenges due to different customer accents and dialects. Not surprisingly, it wasn’t always accurate when it came to taking orders.
While McDonald’s is shutting down the Automated Order Taker next month, the company is leaving the door open for future voice ordering solutions. Additionally, McDonald’s will continue to utilize IBM’s other products in its systems.
The Wider Industry Adoption of AI Continues
Meanwhile, the wider trend of AI technology adoption in the restaurant space is going full throttle. According to CNBC, names such as Del Taco, Wingstop (NASDAQ:WING), and Panera are exploring ways to deploy AI to streamline their operations.
IBM is in the process of offering its voice-based ordering solutions to multiple quick-service restaurants. McDonald’s has announced a partnership with Google (NASDAQ:GOOG). Wendy’s (NASDAQ:WEN) is also using drive-through AI solutions from Google.
Is MCD Stock a Buy, Sell, or Hold?
McDonald’s share price has dropped by nearly 11.6% over the past six months. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average MCD price target of $310.84.
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