McDonald's plans to 'double down' on AI investment by 2027

McDonald's plans to significantly expand its investments in artificial intelligence by 2027, with India expected to play a central role in data governance, engineering, and platform development, a senior executive said on Friday.

The fast-food chain, which has operated in India since 1996, runs hundreds of outlets across the country and recently opened a global office in Hyderabad. The company aims to make this its largest base outside the United States. “We’re still in the early stages, so it’s difficult to quantify the exact investment,” said Deshant Kaila, head of Global Business Services operations, during an event in Hyderabad.

McDonald’s is currently testing AI to validate customer orders in 400 restaurants, helping to catch errors before food is handed over. The technology is expected to be deployed across 40,000 global outlets by 2027, according to Durga Prakash, head of technology for global offices.

The company is also using AI for sales forecasting, pricing strategies, and product analysis, and is developing a personalised mobile app to be used worldwide. Kaila said the company’s India expansion will focus on strengthening its AI capabilities, with spending directed more toward technology and infrastructure than workforce growth.

McDonald’s is also considering opening a global office in Poland, similar to its existing hubs in India and Mexico, according to Prakash.

Earlier this year, the state government of Telangana announced that McDonald’s would establish a global capability centre in Hyderabad, set to employ 2,000 people. These centres in India, once known for cost-effective outsourcing, have evolved to provide a range of high-level services, including operations, finance, and R&D to global firms.

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