Chatbots at the drive-thru are just the beginning

· Source: The Verge · Field: Retail & Consumer Goods — Retail Technology & Operations, Artificial Intelligence & Machine Learning, Customer Experience & Engagement · Depth: Fundamental Awareness, quick

Summary

Major fast-food chains are increasingly deploying AI chatbots for drive-thru ordering, beginning with McDonald's in 2021, which introduced voice-ordering technology at 10 Chicago locations after acquiring Apprente in 2019 and partnering with IBM. Following this, Checkers and Rally's collaborated with Presto AI in 2022 to implement chatbots across all US corporate-owned drive-thrus, aiming to boost sales and order accuracy while reallocating staff. Wendy's launched its "FreshAI" chatbot, developed with Google, at a Columbus, Ohio drive-thru in 2023, achieving 86 percent order accuracy without human intervention and subsequently expanding the system. Taco Bell also began testing its Voice AI drive-thru and plans to expand it to hundreds of US locations by late 2024.

Key takeaway

For product managers evaluating new customer interaction technologies, integrating AI voice assistants into drive-thru operations offers a proven path to improved order accuracy and operational efficiency. You should consider partnerships with specialized AI firms or acquisitions of voice technology startups to accelerate deployment, focusing on training the AI with your brand's unique terminology to ensure seamless customer experiences and free up your staff for more complex tasks.

Key insights

AI drive-thru chatbots are expanding rapidly across fast-food chains to enhance order accuracy and operational efficiency.

Principles

Method

Fast-food chains acquire voice tech startups or partner with AI companies like IBM, Presto, and Google to develop and scale AI-powered drive-thru ordering systems, often training them on specific brand terminology.

In practice

Topics

Best for: Executive, Product Manager, Entrepreneur, AI Product Manager, Consultant, General Interest

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Editorial summary, takeaway, and curation by AIssential. Original article published by The Verge.