Artificial intelligence has been lauded as a revolutionary technology for various industries, including the restaurant sector, which has grappled with rising labor costs in recent years.
The potential of AI to reduce labor costs is especially attractive for fast-food chains with drive-thrus, as a study from Intouch Insight found that up to 14% of drive-thru orders were inaccurately placed in 2023. In response, fast-food giants like Wendy’s have begun implementing AI technology, either in-house or outsourced, to manage drive-thru orders.
RELATED: How the NLRB’s New Joint-Employer Rule Will Affect Franchisees and Franchisors and Redefine Franchise Relations
However, recent SEC filings from Presto Automation Inc., a major player in the AI-ordering sector, revealed that “off-site agents” are instrumental in ensuring order accuracy in more than 70% of customer interactions, as reported by Bloomberg.
Presto’s pitch to restaurant clients such as Del Taco, Carl’s Jr., and Checkers is that using its tech for drive-thru orders will free up employees to focus on food preparation. The company claims that its “friendly, human-like AI voice assistant is available 24/7, always operates efficiently, and consistently upsells.”
However, it has emerged that the company relies on humans—off-site employees in countries like the Phillippines—to double-check orders in over 70% of cases, according to Bloomberg. Presto stated in an email to the outlet that this process “helps train its system and should reduce human intervention over time.”
“It highlights the importance of investors really understanding what an AI company can and cannot do,” commented Brian Dobson, an analyst for Chardan Capital Markets, in an interview with Bloomberg.
Presto, founded in 2008, became a publicly traded company in September 2022. Its technology is currently deployed in over 400 restaurants, but the company’s stock fell more than 10% as of Friday afternoon.
Related: Can Presto Automation Bring AI to the Drive-Thru?
