News, Trends, and Insights for IT & Managed Services Providers
News, Trends, and Insights for IT & Managed Services Providers
Business of Tech | McDonald's Pulls AI Order Takers from Drive Thrus After Viral Failures Highlight Reliability Issues

And now some of the negative ones.  

McDonald’s is removing that AI-powered Automated Order Taker technology from over 100 drive-thrus after videos showing flaws went viral. The technology was developed in collaboration with IBM, but customers reported issues with incorrect orders. McDonald’s will continue to explore technology solutions for its workflow and evaluate a future voice-ordering solution by the end of the year.

A study by researchers at Stanford University finds that AI legal research tools, despite claims by providers, still suffer from a significant rate of hallucinations or demonstrably false outputs. The study tested products from major legal research providers and compared them to OpenAI’s GPT-4 on over 200 legal queries. It found that while hallucinations were reduced compared to general-purpose chatbots, the legal AI tools still hallucinated at an alarmingly high rate. The researchers emphasize the need for transparency and benchmarking in legal AI to mitigate these issues.

According to research published by Pegasystems, business leaders need a clearer understanding of generative AI, leading to failed implementation projects. Despite claiming to have a good understanding of AI, leaders overestimate their knowledge and underestimate the time AI has been used. Decision-makers are willing to invest a significant portion of their IT budget in AI solutions but acknowledge wastage due to a lack of a well-defined AI strategy.

SolarWinds’ 2024 IT Trends Report on artificial intelligence (AI) reveals that while IT professionals strongly desire to adopt AI technology, they have concerns about data quality, infrastructure readiness, and security. The report emphasizes the need for internal systems, prioritizing security, fairness, and transparency in AI development. IT professionals see AIOps as the AI technology with the most positive impact but distrust the data powering AI and cite privacy and security concerns as significant barriers to adoption. They also call for government regulation and the development of thorough ethics, data privacy, and compliance policies for successful and secure AI adoption.

Why do we care?

Replacing humans is a bad idea.   The failure of McDonald’s AI-powered order taker underscores the importance of reliability and accuracy in customer-facing applications. IT service providers must prioritize thorough testing and continuous improvement to avoid similar pitfalls.   That doesn’t mean it’s not a good idea to try. 

IT service providers need to address foundational issues such as data quality and infrastructure readiness to facilitate successful AI adoption. Ensuring robust, secure, and scalable infrastructure is crucial for leveraging AI effectively.  It remains the key opportunity.  

Choose your upgrade:

Get the full benefits of Business of Tech Plus

Insider Access

$12/month

Perfect for MSPs and ITSPs that want full interviews, early access, and ad-free listening

  • Programmatic Ad-free private podcast feedSame show, little interruptions
  • Channel Chatter previews1–2 topics with light insights
  • Early access to interview episodesHear it days before public release
  • Monthly Insider BriefTighter analysis you can share internally
  • Extra audio segmentsCut interviews, behind-the-scenes commentary, quick competitive notes
  • Become an Insider for $12/month

    Leadership Access

    $149/month

    Perfect for MSPs and Vendors that run a team and need the extended tactics, executive summaries, and weekly alignment brief

  • All Insider Access benefits plus . . .
  • Invite your teamIncludes access for 5 team members with option to add more
  • Vendor Strategy BriefsThe entire library, plus new analysis every month
  • Channel ChatterAll topics, full insights, complete vendor discussion + sentiment list
  • Quarterly State of the Channel Briefing
  • Monthly AMA submission priorityAsk Dave direct questions, and skip the line
  • Get the Leadership Edge for $149/month

    Vendor Partner

    $500/month

    Perfect for channel companies or vendors looking to deepen their engagement with the show.

  • All Leadership Access benefits plus . . .
  • Get highlighted as a show sponsor You'll get placement in the show notes, throughout the website, and on our dedicated sponsors page.
  • Enjoy regular shout outs You'll be featured in a rotating format during the show
  • Become a show sponsor for $500/month

    Search all stories