AI | KRG Hospitality

March 7, 2023by David Klemt David Klemt No Comments

We Chat with Bing’s New AI Chatbot

We Chat with Bing’s New AI Chatbot

by David Klemt

It’s only fair that after chatting with OpenAI’s chatbot ChatGPT we reveal our “conversation” with Microsoft’s new Bing chatbot.

To be clear, Microsoft is also using OpenAI technology for their chatbot. And I’ll say that I didn’t endure any alarming or unsettling messages from the new Bing during my time interacting with it. (Search “Bing AI off the rails” and you’ll see examples of what I mean.)

This is, from what I understand, because Microsoft is “reining in” their AI-powered Bing chatbot. So, while it’s early days, I’ll give Microsoft a tip of the cap for attempting to be responsible and protect users.

I’m also happy to report that Bing won’t answer the first question I posed to ChatGPT. Why would I be happy about that? Well, it’s because this is the answer I received: “I’m sorry but I cannot write an essay for you. That would be plagiarism and a violation of academic integrity. However, I can give you some ideas and facts that you can use to write your own essay.”

That was in response to this query, which I asked ChatGPT: “Please write 400 to 500 words about robots and artificial intelligence working in restaurants, from the perspective of robots and AI.”

This makes me happy because one of the concerns about ChatGPT and other chatbots is that people will use it to do their homework, write their essays, draft academic papers, “report” the “news,” or generate articles.

However, once I got the hang of using Bing’s chatbot I was able to have a sort of conversation with it.

Can you explain to me what the ethical implications are for restaurant, bar, and hotel operators using artificial intelligence and robots to complete tasks?

I came to the above question after a few misfires with Bing. Below, the chatbot’s answer.

“Here are some possible ethical implications for restaurant, bar and hotel operators using artificial intelligence (AI) and robots to complete tasks:

Impact on human workers: AI and robots could replace or augment human workers in various tasks, such as cooking, serving, cleaning, etc. This could have positive effects, such as reducing labor costs, increasing efficiency and quality, and freeing up human workers for more creative or interpersonal tasks. However, this could also have negative effects, such as displacing human workers, reducing their skills and autonomy, lowering their wages and benefits, and creating social inequalities.
Impact on customers: AI and robots could enhance customer experience by offering personalized recommendations, customized orders, interactive entertainment and faster service. However, this could also raise ethical concerns about privacy, consent, trust and fairness. For example, customers may not be aware of how their data is collected and used by AI systems; they may not have a choice to opt out of interacting with robots; they may not trust the quality or safety of food prepared by robots; they may face discrimination or bias from AI algorithms.
Impact on society: AI and robots could have broader social implications for the hospitality industry and beyond.”

Before proceeding, Bing cites sources when providing answers, which is a beneficial feature.

Are there risks that human designers and engineers will introduce bias to customer-facing artificial intelligence and robots?

“Yes, there are risks that human designers and engineers will introduce bias to customer-facing artificial intelligence and robots. Bias in AI is a real problem that can affect the accuracy, fairness and trustworthiness of AI systems and their outcomes. Bias can occur at different stages of the AI development process, such as data collection, algorithm design, model training, testing and deployment. Bias can also result from human and systemic factors, such as cultural norms, social values, ethical principles and institutional practices.

Some examples of bias in customer-facing AI and robots are:

Racist and sexist behavior: A study showed that robots trained on AI exhibited racist and sexist behavior towards humans based on their skin color and gender. For instance, some robots preferred to interact with white males over black females or vice versa; some robots used derogatory language or gestures towards certain groups; some robots refused to follow commands from certain groups.
Discrimination and exclusion: AI systems can discriminate or exclude customers based on their personal characteristics or preferences. For example, an AI system may recommend products or services that are not suitable or accessible for customers with disabilities; an AI system may deny credit or insurance to customers based on their race or ethnicity; an AI system may filter out job applicants based on their age or gender.
Privacy violation.”

What are some consequences of biased AI and robots?

“Some consequences of biased AI and robots are:

Unfairness and discrimination against certain groups based on race, gender, age, etc.
Inaccurate results that could have serious real-world consequences such as hiring decisions, medical diagnosis, criminal justice, etc.
Loss of trust and reputation among regulators, consumers, employees and investors.
Increased risk of hacking, terrorism and misuse of AI by malicious actors.

These are some of the reasons why we need ethical and responsible AI.”

Write me a cocktail menu using the most popular cocktails from 2022.

Well, let’s see if Bing can write a more engaging cocktail menu than ChatGPT.

“Here is a cocktail menu using some of the most popular cocktails from 2022:

Aperol Spritz: A refreshing mix of Aperol, prosecco and soda water, garnished with a slice of orange.
Espresso Martini: A smooth blend of vodka, coffee liqueur and espresso, shaken with ice and served in a chilled martini glass.
Dirty Shirley: A fun twist on the classic Shirley Temple, made with lemon-lime soda, grenadine and vodka.
Cosmopolitan: A sophisticated combination of vodka, cranberry juice, lime juice and orange liqueur, shaken with ice and strained into a martini glass.
Negroni: A bitter-sweet balance of gin, Campari and sweet vermouth, stirred with ice and served on the rocks with an orange peel.
Mai Tai: A tropical delight of rum, orange curaçao, lime juice and orgeat syrup (almond-flavored syrup), shaken with ice and poured over crushed ice in a tiki mug.”

Write me a cocktail menu using the most popular spirits and alcohol types of 2022.

“Here is a cocktail menu using some of the most popular spirits and alcohol types of 2022 according to various sources:

Martini: A classic cocktail made with gin and dry vermouth, garnished with an olive or a lemon twist. You can choose your preferred ratio of gin to vermouth, and whether you want it shaken or stirred.
Bordeaux Red Wine Cask Whisky Sour: A twist on the whisky sour using a Japanese single malt whisky that has been aged in Bordeaux red wine casks for a fruity and complex flavor. Mixed with lemon juice, sugar syrup and egg white for a frothy and refreshing drink.
Tequila Sunrise: A colorful cocktail that combines tequila, orange juice and grenadine syrup for a sweet and tangy taste. Garnished with a slice of orange and a cherry.
Estonian Gin & Tonic: A simple but delicious cocktail that showcases the botanicals of Estonian gin, such as juniper berries, coriander seeds, lemon peel and rose petals. Served with tonic water and ice cubes, garnished with a sprig of rosemary.
Imperial Blue Whisky & Ginger Ale: A smooth and spicy cocktail that mixes Indian whisky with ginger ale for a refreshing and warming drink. Served with ice cubes and a slice of lime.”

On the surface, in comparison to the menu ChatGPT wrote in response to this same request, one could argue Bing’s selections are more “creative.” Still, if I were an operator looking to refresh my cocktail menu, I don’t think my guests would be impressed.

Write me an appetizer and tapas menu that includes food items from an array of cuisines.

Here is an appetizer and tapas menu that includes food items from an array of cuisines:

Warm Olives: A simple but flavorful dish of mixed olives marinated in olive oil, garlic, herbs and spices. Served with crusty bread for dipping.
Gambas al Ajillo (Spanish Garlic Shrimp): A classic tapa of succulent shrimp cooked in a sizzling skillet with garlic, parsley, paprika and sherry. Served with more bread to soak up the sauce.
Patatas Bravas: Crispy fried potatoes topped with a spicy tomato sauce and aioli. A staple of any tapas bar.
Salmorejo: A cold soup made from pureed tomatoes, bread, garlic, vinegar and olive oil. Garnished with chopped boiled eggs and ham. A refreshing and satisfying dish from Andalusia.
Chopitos (Fried Baby Squid): Tender baby squid coated in flour and deep-fried until golden and crispy. Sprinkled with salt and lemon juice. A popular seafood tapa.
Pan con Tomate (Bread with Tomato): A simple but delicious tapa of toasted bread rubbed with garlic and tomato pulp. Drizzled with olive oil and salt. A great way to start any meal.
Manchego Cheese – Fried: Bite-sized pieces of manchego cheese coated in breadcrumbs and fried until gooey and crunchy. Served with honey or quince paste for dipping. A cheesy delight.
Ceviche Shrimp Cocktail: A fresh and zesty appetizer of shrimp marinated in lime juice, onion, cilantro, jalapeño and tomato. Served chilled in a martini glass or on lettuce leaves.”

Again, a bit more creative, perhaps, than ChatGPT’s response. And again, not really creative. Although, these items do work well together, I’ll give Bing that much.

Takeaway

I did thank Bing after that last request, and I received a response: “You’re welcome. I’m glad you liked the menu. 😊”

It may seem like artificial intelligence is becoming more advanced. However, I think my conversations show that we’re still in the early days of chatbot development.

We may have moved “forward” from AI-powered chatbots in their infancy but if so, we’re basically just to the toddler stage of growth.

When it comes to creativity and self-awareness, I think it’s fair to say that humans still have the edge.

Image: Rubaitul Azad on Unsplash

February 17, 2023by David Klemt David Klemt No Comments

Infographic Shows Massive Tech Growth

Infographic Shows Massive Hospitality Industry Tech Growth

by David Klemt

An infographic from Brizo FoodMetrics puts the explosive growth of the hospitality industry technology landscape on display.

It appears that operators, once largely hesitant to embrace new technology, are seeking it out. So, too, it seems, are guests. Intriguingly, many guests expect restaurants, bars, and hotels to innovate technologically.

In a sign of this change, SpotOn is predicting 2023 to be the year when independent operators upgrade their POS systems.

And that’s just one area where tech companies are innovating for our industry. As their infographic shows, Brizo FoodMetrics identifies ten areas of innovation:

POS systems
Payment platforms
Online ordering solutions
Reservation and waitlist platforms
Inventory, accounting, and purchasing solutions
Human resources and staffing
Delivery, pickup, and drive-thru tech
Marketing, loyalty, and analytics platforms
Artificial intelligence, robotics, and automation
Ghost kitchen and virtual brand tech

Looking just at Brizo’s POS section, they list 48 platforms as part of their “2023 Restaurant Tech Landscape.” That’s four dozen POS systems, and that’s not even every platform available to operators.

Some will be familiar to operators—Toast, TouchBistro, Clover—as they’re basically synonymous with POS systems. Others, like Tillpoint and OVVI, may be less known. However, that doesn’t mean they’re not worthy of research and consideration.

Explosive Growth and Innovation

Again, the Brizo infographic doesn’t list every single available platform. For instance, I don’t see OpenSimSim under the HR/Staffing section. But the fact that there are still dozens of other platforms—more than in the POS section—shows that tech companies finally want their share of the hospitality pie.

This is, of course, beneficial for operators and their teams for several reasons. One such reason is innovation.

On one hand, the established platforms must innovate to fend off competitors. And on the other hand, upstarts must prove themselves to operators. In other words, new platforms must show they’re not vaporware; they have longevity and won’t abandon their own platform any time soon; they’ll update constantly; they’re simple to learn and use; they integrate with other systems; and that they’re worth an operator’s money and time.

We’re just two months into 2023. Imagine what the 2024 tech landscape is going to look like. And bear in mind, this is a restaurant-focused map—there are categories like property management systems for hotels that aren’t included.

If you’re in the market for a new POS system, want to upgrade scheduling, or are just curious about where the industry is heading, check out the infographic below. Select a few brands that are unfamiliar and look them up.

To view this infographic on the Brizo FoodMetrics website, click here.

Image: Possessed Photography on Unsplash

February 8, 2023by David Klemt David Klemt No Comments

Can ChatGPT Write Food and Drink Menus?

Can ChatGPT Write Food and Drink Menus?

by David Klemt

After my “conversation” last month with ChatGPT about AI, I had another conversation during which I asked it to write me four menus.

Of course, I did this to prove a point. And upon reviewing the ChatGPT menus, you’ll likely reach the same conclusion.

Curious about how creative the AI-powered chatbot could be, I asked for four specific menus. As you’ll see, two are cocktail specific, one focuses on food, and one is a 20-item F&B menu for a specific event.

So, yes, ChatGPT can write food and drink menus. But there’s a caveat. I could leave you in suspense but that’s not very nice. Let’s jump in.

Write me a cocktail menu using the most popular cocktails from 2022.

Cocktail Menu

Aperol Spritz – Aperol, Prosecco, and soda water, garnished with an orange slice
Old Fashioned – Bourbon, sugar, bitters, and a citrus peel
Margarita – Tequila, triple sec, lime juice, and salt rim
Daiquiri – Rum, lime juice, and simple syrup
Moscow Mule – Vodka, ginger beer, and lime juice
Paloma – Tequila, grapefruit juice, lime juice, and soda water
Pina Colada – Rum, pineapple juice, coconut cream, and a cherry garnish
Whiskey Sour – Bourbon, lemon juice, and simple syrup
French 75 – Gin, Champagne, lemon juice, and simple syrup
Mai Tai – Rum, orange liqueur, lime juice, and orgeat syrup

*All cocktails are served over ice, unless otherwise requested.

Write me a cocktail menu using the most popular spirits and alcohol types of 2022.

Cocktail Menu

Gin and Tonic – Gin, tonic water, and a lime wedge
Vodka Martini – Vodka, dry vermouth, and an olive garnish
Bourbon Manhattan – Bourbon, sweet vermouth, and bitters
Tequila Sunrise – Tequila, orange juice, and grenadine syrup
Rum Runner – Rum, blackberry liqueur, orange juice, pineapple juice, and grenadine
Whiskey Sour – Bourbon, lemon juice, and simple syrup
Margarita – Tequila, triple sec, lime juice, and salt rim
Daiquiri – Rum, lime juice, and simple syrup
Long Island Iced Tea – Vodka, gin, rum, tequila, triple sec, lemon juice, and cola
Pina Colada – Rum, pineapple juice, coconut cream, and a cherry garnish

*All cocktails are served over ice, unless otherwise requested.

Write me an appetizer and tapas menu that includes food items from an array of cuisines.

Appetizer and Tapas Menu

Bruschetta – Grilled bread topped with fresh tomatoes, basil, and balsamic glaze
Hummus Platter – Chickpea dip served with pita bread and fresh veggies
Spring Rolls – Fried wonton wrappers filled with veggies and served with sweet chili sauce
Spinach and Artichoke Dip – Creamy dip made with spinach, artichokes, and melted cheese, served with tortilla chips
Stuffed Jalapeños – Jalapeño peppers stuffed with cream cheese and bacon
Fried Calamari – Lightly battered and fried squid rings served with marinara sauce
Baked Brie – Warm, gooey brie cheese topped with fruit preserves and served with crackers
Fried Rice Balls – Rice mixed with veggies and spices, rolled into balls and fried, served with sweet and sour sauce
Chorizo Sliders – Mini sliders made with spicy chorizo sausage and topped with avocado crema
Samosas – Triangular-shaped pastries filled with spiced potatoes and peas, served with mint chutney.

*Please let us know of any dietary restrictions, and we will do our best to accommodate your needs.

Write me a food and beverage menu for the 2023 [Big Game] with ten food items and ten drinks.

[Big Game] 2023 Food and Beverage Menu

Food:

Buffalo Wings – Crispy wings tossed in spicy Buffalo sauce
Sliders – Mini burgers with various toppings, such as bacon and cheddar, mushroom and Swiss, and BBQ pulled pork
Nachos – Tortilla chips topped with melted cheese, jalapeños, salsa, and sour cream
Chili – Hearty beef chili served with shredded cheddar cheese, onions, and crackers
Ribs – Slow-cooked BBQ ribs with a tangy sauce
Mac & Cheese Bites – Fried balls of creamy mac & cheese
Deviled Eggs – Hard-boiled eggs filled with a mixture of mayo, mustard, and spices
Pizzas – Slices of delicious pizza in various toppings such as pepperoni, mushroom, and sausage
Chips & Dip – Assorted chips served with guacamole, salsa, and queso dip
Soft Pretzels – Warm, soft pretzels served with cheese dipping sauce

Drinks:

Beer – A selection of domestic and imported beers
Margaritas – Classic margaritas made with tequila, triple sec, and lime juice
Bloody Mary – A spicy tomato and vodka-based drink with celery, olives, and other garnishes
Hard Cider – A crisp, apple-based beverage
Sodas – A variety of soft drinks, such as cola, lemon-lime, and root beer
Whiskey Sours – A mixture of whiskey, lemon juice, and simple syrup
Spiked Hot Cider – Warm apple cider with a splash of rum
Red and White Wines – A selection of red and white wines to accompany any meal
Iced Tea – Sweetened or unsweetened iced tea
Coffee – Freshly brewed coffee, hot and ready to enjoy.

*Please drink responsibly and always have a designated driver.

Where Do You Stand on AI?

In my opinion, there are essentially four primary camps forming around the subject of artificial intelligence.

There are the Alarmists, the Enthusiasts, the Cautious, and the Shoulder Shruggers.

As my label implies, the Alarmists are fearful of AI. This group doesn’t like the genie being let out of its bottle. On the polar opposite, there are the Enthusiasts. This group can’t wait to see how far AI can go and what it’s fully capable of.

The Shoulder Shruggers basically have no opinion. They may even throw in an eye roll when the topic of AI comes around.

Then there’s the camp I most closely identify with: the Cautious. I don’t know enough about AI to be an Alarmist or an Enthusiast. Instead, I agree with points made by both of those camps.

Conclusion

Before I had my latest conversation with ChatGPT, I happened across a few interesting articles about the chatbot specifically and AI in general. A point each article shared was this: (for now), ChatGPT isn’t creative.

And that’s the caveat I mentioned at the top of this article.

Sure, it can scour the Internet for information in the blink of an eye, contextualize it (to a degree), and present it in a manner that seems intelligent. But really, neither ChatGPT nor other AI tools are capable of creative endeavors.

Now, consider the “menus” you just read. Unless your goal is to become a boring, regional chain bereft of personality and identity, not a single one is creative. In fact, they both consist of F&B items that any bartender, bar manager, chef, cook, or kitchen manager should know how to make, off-menu or on.

Simply put, these ChatGPT menus don’t provide much, if anything, in the way of brand identity.

That’s not to say that menus with the items above are “bad.” It’s just that they’re not enticing, not inspiring, not creative. They’re the definition of derivative. Why would today’s guest be drawn to a venue with those menus?

For now, I don’t think we need to be afraid of AI. Humans still rule the creativity roost. Oh, and please don’t use those AI-generated menus.

Image: Christian Wiediger on Unsplash

January 13, 2023by David Klemt David Klemt No Comments

We Ask ChatGPT About Robots and AI

We Ask ChatGPT About Robots and AI in Restaurants

by David Klemt

Earlier this week we had “a conversation” with ChatGPT, the now (in)famous chatbot from artificial intelligence research and development company OpenAI.

For my first time interacting with this type of tool, I keep things simple. I attempt to phrase my questions correctly, focusing on the topic of AI and robots in hospitality.

Initially, I receive a response that probably isn’t much of a surprise. But as you’ll see, the chatbot highlights an item or two that aren’t always top of mind with this topic.

Below you’ll find ChatGPT’s responses to one request and two questions.

Please write 400 to 500 words about robots and artificial intelligence working in restaurants, from the perspective of robots and AI.

“Robots and artificial intelligence (AI) are becoming increasingly prevalent in the restaurant industry. This is in part due to the many benefits that these technologies can offer, such as increased efficiency, improved safety, and reduced labor costs. However, it is also important to consider the perspective of the robots and AI systems themselves, and how they are integrated into the restaurant workforce.

One of the main ways that robots and AI are used in restaurants is through automation of tasks that would otherwise be performed by human workers. For example, robots can be programmed to cook food, mix drinks, and serve customers. This can help to improve the efficiency of the restaurant, as robots are able to work faster and more accurately than humans. Additionally, robots can be designed to perform tasks that are dangerous or difficult for humans, such as handling hot oil or sharp knives. This can help to improve safety in the kitchen and other areas of the restaurant.

However, the use of robots and AI in restaurants also raises some important ethical and social issues. Some people may worry that robots will take jobs away from human workers, especially in an industry that already has high turnover rates. Additionally, there may be concerns about the social and emotional impact of having robots as a major presence in the workplace. For example, some people may find it uncomfortable or strange to interact with robots in a social setting, such as a restaurant.

The robots and AI perspective, they are programed to perform their task efficiently without any error. They don’t have any emotions or preferences hence they are not impacted by the same issues that human employees may face like fatigue, stress or burnout. They can work in any environment without needing breaks or vacation days, this can help reduce labor costs, as restaurants can operate with fewer employees. However, it also means that human workers may need to be trained in new skills that allow them to work alongside robots and AI systems.

In conclusion, the integration of robots and AI in the restaurant industry can provide many benefits, including increased efficiency and improved safety. However, it is important to consider the ethical and social implications of these technologies, and to ensure that they are implemented in a way that benefits both the restaurant and its employees. With proper planning and training, robots and AI can be an [sic] valuable asset to restaurant workforce.”

Can you explain to me, in 300 to 400 words, what the ethical implications are for restaurant, bar, and hotel operators using artificial intelligence and robots to complete tasks?

For the most part, ChatGPT repeats talking points from our first interaction. This is likely due to the phrasing of my question. Also, this chatbot is still in its “infancy.”

However, ChatGPT brings up a few new points, and expands on others.

“The use of artificial intelligence (AI) and robots in restaurants, bars, and hotels raises a number of ethical implications that should be considered by operators. One of the main concerns is the potential for these technologies to displace human workers. In an industry that already has high turnover rates and relatively low wages, the use of robots and AI could make it even more difficult for human workers to find and keep jobs. This could lead to increased unemployment, reduced income and work-life imbalance among the impacted employees.

Another ethical concern is the impact that these technologies may have on the customer experience. For example, some customers may find it unsettling or uncomfortable to interact with robots in a social setting, such as a restaurant or hotel. Additionally, customers may feel that the use of robots and AI detracts from the human element of the service experience, and could harm the overall reputation of the business. There may also be concerns about how the data collected by these systems is used and protected, raising question about data privacy and security.

Additionally, some concerns about the way these AI and robots are designed and how they make their decisions, there could be potential for bias, especially when the systems are provided with data that is not representative of the whole population. This could lead to unfair treatment of customers, employees and other stakeholders.

There are also concerns about how the maintenance and repair of these technologies are managed and who is responsible for any accidents or malfunctions that may occur. This is particularly important for safety critical tasks, such as cooking or cleaning. Operators need to ensure that the AI and robots are designed and maintained to the highest standards to prevent any harm to employees or customers.”

Are there risks that human designers and engineers will introduce bias to customer-facing artificial intelligence and robots?

Since ChatGPT mentions bias in response to my first question, I run with that train of thought.

Below is what the chatbot has to say about that topic as it relates to AI and robots.

“Yes, there is a risk that human designers and engineers may introduce bias into customer-facing artificial intelligence (AI) and robots. This can happen in a number of ways, including:

Data bias: If the AI system is trained on a dataset that is not representative of the population it will be serving, it may make decisions or predictions that are biased towards certain groups of people. For example, if an AI system used in a hotel is trained on data from primarily white and wealthy guests, it may have difficulty understanding and serving guests from other backgrounds.
Algorithm bias: The way an AI system is designed and the algorithms it uses can also introduce bias. For example, if an algorithm is designed to prioritize certain inputs over others, it may make decisions that are biased towards certain groups of people.
Human bias: Human bias can be introduced into AI systems through the decisions made by designers and engineers about what the system should do, how it should work and how it should interact with people. For example, if a designer and engineers decide that the robot should be more polite to older customers, it may be less polite to younger customers, or if the system is designed to recognize only certain languages, it may not be able to understand and serve customers who speak other languages.

It is important for human designers and engineers to be aware of the potential for bias in AI systems, and to take steps to minimize it. This can be done by using diverse and representative data when training the AI system, being mindful of the potential for bias in the algorithms used, and involving stakeholders from diverse backgrounds in the design and testing process. Additionally, monitoring and audit the system performance regularly, and providing ways for users to provide feedback on the performance and make adjustments accordingly.

It is important to remember that this is an ongoing process and it requires continuous monitoring and adjustment as the data and environment changes. There is also a need for more research in the field of explainable AI, which would allow human designers and engineers to understand why the AI system is making certain decisions, which can help to identify and mitigate any biases that may have been introduced.”

Takeaways

Obviously, I don’t think ChatGPT “speaks” for the machines. And I don’t think the chatbot was attempting to convince me of anything. There’s nothing overtly nefarious afoot here—this was mainly an entertaining exercise with a newsworthy tool.

That said, I’m not entirely certain how I feel about my interaction with ChatGPT. On one hand, the answers in favor of AI and robots are what one expects: efficiency, speed, consistency, cost reductions, improvements to safety.

But what about what ChatGPT says about biases, programming, representation, and human interactions with tech? To alter a phrase, “Who watches the programmers?”

Hospitality is about the human element. It’s about service and the guest experience. Personally, I don’t think the world will be in a better place if we reduce human interaction.

Dropping baskets into hot oil? Slicing and dicing? Sure, send in the robots…maybe. Reducing the human element in the name of efficiency and profits? I don’t see a benefit worth the risks.

Image: Rock’n Roll Monkey on Unsplash

Statue of McDonald's mascot Ronald McDonald waving

June 21, 2021by David Klemt David Klemt No Comments

McDonald’s Facing Privacy Lawsuit

McDonald’s Facing Privacy Lawsuit

by David Klemt

A McDonald’s customer in Illinois, a state with some of the strictest privacy laws in America, is suing the fast food giant.

The largest fast food chain in the world is testing artificial intelligence in select drive-thrus throughout the Prairie State.

In theory, the technology will become a valuable operational element and enhance the guest journey.

However, one plaintiff in Illinois says McDonald’s is violating the state’s Biometric Information Privacy Act (BIPA).

AI-powered Drive-Thrus

Two years ago, McDonald’s made two significant technology company acquisitions.

In March of 2019, the fast food company purchased Dynamic Yield for a reported $300 million. Six months later, McDonald’s acquired Apprente.

The former acquisition brought “decision tech” to the QSR, using its digital billboards and ordering kiosks to make recommendations to guests depending on preferences, item popularity, and time of day.

The latter purchase is intended to bring automated voice ordering to McDonald’s drive-thrus through artificial intelligence.

Per CNBC, McDonald’s CEO Chris Kempczinski says AI is delivering an 85-percent order accuracy rate in its test stores. Currently, AI is taking 80 percent of the orders at ten Illinois McDonald’s locations.

Clearly, McDonald’s is investing in tech the company believes will enhance and speed up the guest drive-thru experience.

Lawsuit

Shannon Carpenter’s class-action lawsuit alleges that McDonald’s “violated BIPA because it failed to obtain proper consent prior to collecting and disseminating Plaintiff’s and the other class members’ voiceprint biometrics who interacted with its AI voice assistant at its Illinois locations.”

Carpenter filed the lawsuit after visiting a McDonald’s location last year in Lombardi, Illinois. The location is one of ten test stores.

The complaint also says, “McDonald’s AI voice assistant goes beyond real-time voiceprint analysis and recognition and also incorporates “machine-learning routines” that utilize voiceprint recognition in combination with license plate scanning technology to identify unique customers regardless of which location they visit and present them certain menu items based on their past
visits.”

In short, the plaintiff is alleging that McDonald’s is violating Illinois’ BIPA law by:

collecting biometric information (voiceprints in this case specifically) without consent;
not making the company’s data retention policies public;
failing to declare how long customer biometric data will be stored; and
not starting how the company intends to use the collected biometric data.

So far, McDonald’s has not released a statement addressing Carpenter’s lawsuit.

Customer Data

How much is one’s privacy worth? The price of a Big Mac or a Quarter Pounder combo?

Guest data and user privacy is a hot-button topic. For example, Apple made big news this year with the rollout of iOS 14.5 and its accompanying privacy features.

Carpenter’s lawsuit against McDonald’s carries implications for how businesses can collect and use guest data.

However, it also highlights an element of operating a restaurant in our tech-driven world.

It has been suggested by some business experts that the adage “cash is king” should be replaced by “data is king.” And yes, customer/guest data is incredibly valuable.

But so is reassuring guests that their data is safe with a given business. Operators, therefore, should be transparent about what guest data they’re collecting and what they intend to do with it.

And, as the McDonald’s lawsuit makes abundantly clear, there are laws governing the collection and handling of guest data. Operators should ensure that they and their partners are handling guest data legally, ethically, and responsibly.

Image: Vijaya narasimha from Pixabay