Field Notes
Taco Bell Digests McDonald's AI Lesson
Want to get a governance team fired up about AI? Tell them about the time someone ordered 18,000 cups of water through a Taco Bell drive-thru speaker. Or the time McDonald's AI confidently added bacon to an ice cream order. Or the customer who somehow ended up with a receipt for several hundred chicken nuggets. These are the stories we laugh at, the kind of AI schadenfreude the internet lives for, and let's admit they are pretty funny.
Here's the thing. McDonald's and Taco Bell did the rest of the industry a massive favor.
McDonald's went first. They partnered with IBM on a system called AOT, Automated Order Taking, and rolled it out to drive-thrus starting around 2021. Four years later, after a steady stream of viral fails and millions invested, they ended the partnership. The technology was fine for straightforward orders. It fell apart at the edges, which in a drive-thru means accents, background noise, kids yelling, people changing their minds, customizations, and the chaos of a car full of humans trying to agree on lunch.
Taco Bell watched all of this happen and then proceeded to deploy its own system anyway, which takes a certain kind of confidence. Someone at Taco Bell HQ looked at the McDonald's experience and said we can do it our way. Maybe that's true, but 18,000 cups of water suggest there's still work to do.
What makes these cases instructive is where the companies chose to deploy AI. The drive-thru isn't a back-office function or employee tool. It is the product. It is the entire customer interaction compressed into mere seconds. Speed and accuracy are the value proposition. When the AI gets an order wrong, the customer doesn't think, "Well, the technology is maturing." They think, "this place can't get my order right," and they drive to the next restaurant.
The lesson for every other industry is not that drive-thru AI is a bad idea, but that deploying AI into your core value zone without human testing is a recipe for the kind of failure made for social media fame. The interaction level is where edge cases live and the gap between demo and deployment becomes painfully obvious.
Surprisingly, companies that move fastest with AI are the ones that slow down at this step. The ones that set limits on what the system can do, integrate human gates, and build modern governance around the deployment will win the classic tortoise and the hare race towards customer utility, and dare I say, satisfaction.
Every industry has its version of the drive-thru. In healthcare, we see AI entering patient interaction. For financial it's managing, protecting, and preserving customers' money. In the legal field, it's the client's case and the experience and protection of their data and discretion. The question isn't whether AI belongs there. It does.
The question is whether you've done the work to make sure your deployments don't receive the equivalent of 18,000 cups of water. Otherwise, you should be prepared for the extra hot sauce that follows. With modern governance, adaptive compliance, and effective human observation, we can successfully move faster and further with AI. For now, I suppose one cup will do.
Sources
- McDonald's ends IBM AOT partnership (CNBC, 2024)
- Taco Bell AI drive-thru halt (Business Insider, 2025)
- Yum! Brands statement on AI ordering initiative (Yum! Brands, 2025)