McDonald's Boosts AI Investment, Targets India as Key Hub

McDonald’s has announced plans to significantly increase its investments in artificial intelligence (AI) by 2027, designating India as a key strategic hub for its data governance, engineering, and platform architecture initiatives.

The fast-food giant, which established its presence in India in 1996 and now operates hundreds of restaurants across the country, recently opened a global office in Hyderabad. This facility is envisioned to become McDonald’s largest global office outside of the United States.

Deshant Kaila, McDonald’s head of Global Business Services operations, indicated that the company is still in the early stages of this enhanced AI investment, making it difficult to specify an exact figure at present.

Currently, McDonald’s is utilizing AI to verify orders in 400 restaurants, a measure designed to prevent errors before orders are handed over to customers. Durga Prakash, head of technology for global offices, stated that the company aims to expand this AI-powered verification system to 40,000 locations worldwide by 2027. Beyond order verification, the company is also employing AI tools for sales forecasting, pricing decisions, and product performance assessment. Additionally, McDonald’s is developing a personalized mobile application intended for cross-country use.

Kaila noted that the push in India will primarily focus on building a robust AI team. However, he clarified that the majority of the investment will be directed towards acquiring new technology and tools, rather than significantly increasing headcount.

In line with its global expansion strategy for technical capabilities, Durga Prakash also mentioned that McDonald’s is in discussions to establish a new global office in Poland, similar to its existing facilities in India and Mexico. Earlier this year, the southern Indian state of Telangana had announced that McDonald’s would launch a global capability center in Hyderabad, projected to employ 2,000 people. This move aligns with the evolving role of India’s global capability centers, which have transformed from traditional outsourcing hubs into advanced support centers for parent organizations across various domains, including operations, finance, and research and development.