OM in the News: McDonald’s Tries AI a Second Time

McDonald’s plans to change its drive-thrus in a major way, reports MSN.com (June 5, 2026). Nearly two years after it discontinued its AI ordering system, it says it plans to roll out a new AI-based operating system at all restaurants.  A few years ago, McDonald’s joined the likes of Wendy’s and Taco Bell in testing AI-powered ordering systems at its drive-thrus. The ordering chatbots were made in partnership with IBM and released at more than 100 McDonald’s restaurants.

Unfortunately, the system, which was meant to make ordering easier, did anything but, with customers reporting that the automated ordering system added extra items to their tab. McDonald’s ended its partnership with IBM in 2024, but announced that it was exploring “voice ordering solutions more broadly.” Now, the fast food chain has found a new partner in Google to bring its Arch IQ and drive-thru assistant, Archy, back to life.

The brand announced its latest business strategy, called McDonald’s Next. The growth strategy plans to reimagine McDonald’s “menu, consumer, restaurant, and people,” while “imagining” new business and AI.

Stores are currently testing its Arch IQ drive-thru AI system, which can take orders in both English and Spanish with ease. “Archy will not only assist drive-thru orders but act as a master brain to help managers run a better restaurant. It’s like a personal assistant that alerts you to potential bottlenecks or issues,” the firm writes.

“We are currently in five test stores, having processed over 1 million transactions with about 90% of orders completed without human escalations. Impressive for a new test,” said one McDonald’s owner.

Classroom discussion questions:

1. Why did AI fail the first time and will it work this time for ordering?
2. How can AI help managers “run a better restaurant?”