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McDonald’s AI Startup Acquisition Combines Big Data with Big Mac’s

Ross Kelly

,

McDonald's AI Startup

Artificial intelligence could be recommending products such as McFlurry’s in the near future…

Fast food behemoth McDonald’s is set to acquire an artificial intelligence (AI) startup for around £227 million.

Israeli startup Dynamic Yield has developed technology that can automatically change menu item recommendations based on variables such as the weather, traffic and even the time of day.

Using data-driven insights for its menus could help to improve customer experience and streamline operations, McDonald’s believes.

Based in Tel Aviv, Dynamic Yield’s algorithms monitor consumer patterns and past purchases to recommend which items a person may buy in the future. The firm has previously produced machine learning systems for companies such as Ikea and bookmakers, William Hill.

McDonald’s chief executive Steve Easterbrook said the company aims to provide a “much more personalised experience” for customers. Easterbrook added that the data gathered from more than 60 million customers worldwide will be integrated into its app and kiosk stations in-store.

The AI platform McDonald’s aims to deploy through this purchase will determine product promotions, such as recommending McFlurry’s on hot days, as well as providing customers with popular items previously purchased in-store that day.

McDonald’s told Wired that registration plate recognition will also be deployed, which will offer drive-through customers their usual food order. The majority of McDonald’s branches in the United States are drive-throughs, and as such the technology will be rolled out first overseas.

“It can know time of day, it can know weather. We can also have it understand what our service times are so it only suggests items that are easier to make in our peak hour,” Easterbrook commented.

McDonald’s tested the AI platform at several branches last year, the company confirmed. Moving forward, more than 1,000 locations could be using it within the next three months, with 14,000 US restaurants ultimately benefiting from it.

Ross Kelly

Staff Writer & Researcher

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