Move over, “digital transformation.” Now we have "AI transformation," which refers to the integration of artificial intelligence into business processes to improve efficiency, decision-making, and innovation.
As a practical matter, AI transformation is likely to be hard to measure and might not happen “rapidly,” as whole business processes might have to be redesigned. On the other hand, it might be easier to illustrate how “AI transformation” can affect some processes in a measurable way.
McDonald's wanted to improve its drive-thru experience, boost sales through personalized recommendations, and optimize restaurant operations.
McDonald's in 2019 began using Dynamic Yield, an AI-powered personalization platform owned by Mastercard. McDonalds then used it to change digital drive-through menus based on weather, time of day, popular items, and current restaurant traffic.
On a hot day, the menu might prioritize cold drinks; during the morning rush, breakfast combos might be featured.
In the kitchen, McDonald’s added AI models and sensors (to monitor equipment health) predict demand for food items, optimize kitchen prep times, reduce waste and limit equipment downtime .
The firm also adopted AI-driven forecasting, to help improve inventory management, reduce food shortages and overstocking.
Other fast food restaurants are doing likewise. Still, “transformation” is more a goal and a process, rather than an easily-quantifiable outcome.
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