McDonald’s has acquired a startup called Dynamic Yield Ltd, which is an AI company that focuses on personalization. This purchase cost McDonald’s over $300 million and is the largest purchase they have made in the last two decades. The last time they acquired a company like this was when they bought Boston Market for $173.5 million, which was later sold. It has been announced that the AI will be used in the United States starting this year.
Interestingly, part of the deal for the acquisition is that McDonald’s owns Dynamic Yield but it still gets to operate as a separate entity and work with other clients such as IKEA or Forever 21. Dynamic Yields is also still allowed to gain new clients and help them.
McDonald’s has said that the reason they purchased Dynamic Yield was to make use of their AI to upgrade their drive-through windows. The AI is expected to change based on weather, time, traffic, and what menu items are currently the most popular. In addition to this, the AI is going to be able to suggest food items to customers based on their orders.