How does McDonald's use AI? Operations, customer service, and personalized marketing!

Fast food giant McDonald's is undergoing a profound technological transformation. The global chain's 43,000 locations are reshaping customer experience and operational efficiency by introducing artificial intelligence (AI), edge computing, and Internet of Things (IoT) technologies.

According to The Wall Street Journal, McDonald's partnered with Google Cloud at the end of 2023 to bring edge computing technology into its stores. This means that each restaurant now has local data processing and analysis capabilities without relying on remote cloud servers. This is particularly important in areas with unstable network connections. McDonald's Chief Information Officer Brian Rice stated that edge computing enables faster and more cost-effective data processing.

Edge computing provides strong support for McDonald's AI applications.

First, kitchen equipment (such as fryers and ice cream machines) will be equipped with sensors, and real-time data will be analyzed through the edge computing system. AI can predict equipment failures, provide early warnings, reduce downtime, and improve operational efficiency.

Second, McDonald's is exploring the application of computer vision technology for order accuracy. Through cameras, AI can identify whether the order matches customer requirements, avoiding errors.

Additionally, McDonald's is collaborating with Google Cloud to explore the use of voice AI in drive-throughs. Since 2019, McDonald's has been experimenting with voice-activated drive-throughs and robotic fryers. Although it ended its partnership with IBM in automated ordering in 2024, its exploration in the field of voice AI continues.

Personalized Marketing: AI-Driven Customer Loyalty

Edge computing will also help McDonald's create a "generative AI virtual manager." This tool will assist restaurant managers in handling administrative tasks, such as scheduling. According to Bloomberg, fast food giant Yum Brands' Pizza Hut and Taco Bell are also exploring similar functionalities.

McDonald's plans to use AI to analyze customer data, including purchase history and weather data, to achieve personalized promotions. For example, during hot summer days, it could push McFlurry discounts to customers who enjoy desserts. Rice stated that this will help McDonald's achieve its goal of increasing the number of loyal customers from 175 million to 250 million by 2027.

Although McDonald's is at the forefront of edge computing applications in the industry, it still faces challenges. Gartner analyst Sandeep Unni pointed out that costs and cross-store technology promotion are major obstacles. McDonald's has not disclosed the specific amount of its technological investments.

However, compared to its competitors, McDonald's is more proactive in digital technology investments. Coupled with its vast accumulation of customer data, this gives McDonald's an advantage in enhancing customer loyalty