McDonald's has been using AI to decide how much you should pay for a Big Mac

TechSpot
McDonald's uses AI to set menu prices based on customer willingness to pay, prompting franchisee pressure and antitrust concerns.

Summary

McDonald's has increasingly relied on AI-driven dynamic pricing to determine menu prices, including Big Macs, based on data from millions of transactions and competitors' prices. Store owners report being pressured to follow algorithmic recommendations, with deviations tracked by corporate and potentially affecting expansion opportunities. The system can create significant price disparities between nearby locations, such as a $1.20 difference for a Big Mac just two miles apart. While McDonald's claims franchisees have freedom to set prices, sources indicate limited choice, and the company warns about antitrust risks like price fixing. This is part of a broader, mixed history of AI adoption, including failed chatbot projects and a controversial AI-generated ad.

(Source:TechSpot)