Artificial intelligence-driven drive-thru enterprise Presto Automation, known for its advanced ordering technologies, has established partnerships with major chains such as Checkers and Del Taco. However, recent reports reveal that a significant portion of transactions are being handled by human workers.
Presto Automation, a prominent labor automation technology provider, prides itself on enhancing sales and optimizing labor efficiency. Nevertheless, filings with the US Securities and Exchange Commission indicate that remote human operators are responsible for over 70% of transactions.
Despite positioning itself as a leader in automated drive-thru solutions, Presto Automation reportedly employs personnel in locations like the Philippines, as per Bloomberg. Its drive-thru technology is utilized by various fast-food establishments nationwide, including Carl’s Jr., Hardee’s, Del Taco, and Checkers, with the promise of reducing operational costs and increasing store profitability. The Presto Voice feature leverages AI to streamline customers’ drive-thru orders.
According to Bloomberg, the SEC has initiated an inquiry into certain aspects of Presto Automation’s AI systems earlier this year. The company is yet to respond to this development.
This scenario highlights a trend in IoT solutions where companies, despite promoting AI-driven services, rely heavily on human intervention from regions with lower labor expenses. For instance, a virtual shopping application named Nate, endorsed by celebrities and influencers, initially claimed to utilize AI for order processing. However, it was later revealed that a majority of orders were fulfilled by human workers in the Philippines. Similar instances have emerged where human labor is masked under the guise of AI technology.
In a previous Bloomberg investigation conducted at a Del Taco establishment, a restaurant executive disclosed that Presto Automation significantly reduced manual order handling by approximately 70%. This shift towards AI implementation has raised concerns regarding potential job displacement. Interestingly, in this context, the replacement of human labor is not driven by AI capabilities but rather by the pursuit of cost-effective labor alternatives elsewhere.
The evolving landscape of AI-driven technologies underscores the intricate relationship between automation, human labor, and operational efficiencies within the service industry.
