Taco Bell to expand AI-powered drive-thrus as rivals ditch technology

Taco Bell will double down on using artificial intelligence to take drive-thru orders —  despite some of its rivals moving away from the technology.

The Mexican fast food chain’s parent company Yum! Brands Inc. announced on Wednesday that it will expand its Voice AI technology to “hundreds” of locations nationwide by year’s end.

Taco Bell, which has 7,400 locations nationwide, has already deployed AI at more than 100 outposts in 13 states — resulting in what the parent company says is more efficient and quicker service, improved order accuracy, shorter wait times and bigger profits.

“Yum! Brands is integrating digital and technology into all aspects of our business with exciting new capabilities, and AI is a core piece of that strategy,” Lawrence Kim, chief innovation officer at Yum! Brands, said in a statement.

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“With over two years of fine-tuning and testing the drive-thru Voice AI technology, we’re confident in its effectiveness in optimizing operations and enhancing customer satisfaction.”

The Louisville, Ky.-based fast food conglomerate said that its increased reliance on AI will allow the chain’s workforce to focus on other tasks.

Yum, which also owns Pizza Hut and KFC, says it has also been testing Voice AI at five KFC locations in Australia, and has so far received positive feedback there on its use.

Taco Bell’s expansion comes on the heels of McDonald’s halting its AI-powered automated drive-thru pilot program this week at more than 100 locations after a series of customer complaints about receiving incorrect items.

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Notable errors included an order mistakenly adding nine sweet teas and another where an ice cream cone came with unexpected bacon.

One TikTok user even showed the AI system erroneously adding more than 20 McNuggets Meals, totaling about $222.

The Chicago-headquartered fast food giant initiated the program in collaboration with IBM two years ago, testing it at select franchise locations.

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However, franchisees were informed via email that the initiative would cease on July 26, although a revised AI system might return in the future.

“While there have been successes to date, we feel there is an opportunity to explore voice ordering solutions more broadly,” said McDonald’s USA Chief Restaurant Officer Mason Smoot In a memo obtained by Restaurant Business magazine.

IBM said that while McDonald’s is reevaluating its automated order-taking plans, they would continue collaborating on various other projects.

Several other fast food franchises, including Checkers, Carl’s Jr., Wendy’s, and Domino’s, have either tested or fully deployed AI technologies.

Starbucks uses AI for personalized customer recommendations, and KFC is experimenting with AI software in facial recognition in some locations in China to predict customer orders.

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