At a recent summit in India, McDonald’s executives revealed ambitious plans to expand AI use across all operations by 2027, with India playing a central role as the tech hub for this transformation.
This initiative shows McDonald’s commitment to staying ahead in the fast-food niche through technology, even after ending its controversial AI drive-thru experiment last year.
McDonald’s AI Order System
The fast-food chain currently uses AI to verify orders at 400 restaurants, checking for errors before customers get their food. This system helps catch mistakes that could lead to wrong orders or unhappy customers. McDonald’s plans to roll out this AI verification technology to 40,000+ locations worldwide by 2027.
McDonald’s also wants to grow its loyalty program from 175 million to 250 million active users by 2027, using AI to create more personalized experiences for customers.
Durga Prakash, McDonald’s head of technology for global offices, confirmed the expansion timeline during the announcement. The system uses cameras and AI to visually check that orders match what customers requested before bags get sealed.
India Becomes McDonald’s Global AI Command Center
McDonald’s chose India as its key hub for data governance, engineering, and platform architecture. The company recently opened its largest global office outside the United States in Hyderabad, with plans to hire 2,000 employees.
Deshant Kaila, McDonald’s head of Global Business Services operations, said the India push will focus on building AI teams. However, most spending will go toward technology and tools rather than just hiring more people.
“We’re still in the early stages, so it’s hard to pin down the exact investment,” Kaila told Reuters in Hyderabad.
Beyond Drive-Thru: McDonald’s AI Plans Go Kitchen-Deep
The AI strategy extends far beyond order-taking. McDonald’s uses artificial intelligence to forecast sales, set prices, and analyze product performance. The company is also building a personalized app that will work across different countries.
This comprehensive approach comes after McDonald’s ended its AI drive-thru partnership with IBM in June 2024. That system faced criticism from customers who experienced order mix-ups, including viral videos of the AI ordering hundreds of chicken nuggets by mistake.
Global Tech Hubs Drive McDonald’s Digital Strategy
Beyond India, McDonald’s is expanding its global technology footprint. The company is in talks to establish another global office in Poland, similar to existing centers in India and Mexico. These hubs focus on business operations, technology, analytics, and AI development.
The Hyderabad center will occupy 200,000 square feet and serve as McDonald’s largest global capability center outside the US. This facility will concentrate on creating solutions for customers worldwide using business intelligence, technology, and AI.
Fast Food Industry Embraces AI Despite Early Setbacks
McDonald’s renewed AI push comes as the entire fast-food industry invests heavily in automation technology. Companies like Wendy’s and Taco Bell continue testing AI drive-thru systems, while others focus on kitchen automation and predictive analytics.
The industry sees AI as essential for handling labor shortages, improving order accuracy, and speeding up service during peak hours.
McDonald’s AI Strategy Shows Learning from Past Mistakes
Rather than abandoning AI after the drive-thru setbacks, McDonald’s took a more strategic approach. The company shifted focus from customer-facing AI to behind-the-scenes operations where the technology can add value without direct customer interaction.
This includes using AI for equipment monitoring, inventory management, quality control, and areas where mistakes don’t immediately affect customer experience.
The 2027 timeline gives McDonald’s room to test and refine its AI systems before full deployment. This measured approach contrasts with the company’s earlier rush to implement drive-thru AI before the technology was ready.
McDonald’s stock has performed well this year, and investors seem optimistic about the company’s tech investments. The AI expansion, combined with restaurant growth plans, positions McDonald’s to maintain its leadership in the competitive fast-food market.
