McDonald’s Acquires an AI Company Named Dynamic Yield

199

In the recent AI news, McDonald’s has announced buying a tech startup that it hopes will help it sell customers more of what they want. The fast-food giant declared that it is acquiring Dynamic Yield, an Israeli company that uses artificial intelligence to give consumers personalized. This startup is based in Tel Aviv and is popular in providing retailers with algorithmically driven “decision logic” technology.

Much before its AI acquisition and to keep up with market trends, the company has also been smartening up its outlets, rolling out new decor, kiosks, free-to-use tablets and phone chargers. Self-order kiosks, mobile order and payment, and delivery via UberEats are few among the tech initiatives introduced by McDonald’s in 2015.

Read the latest blog titled, "McDonald's Acquires an AI Company Named Dynamic Yield"

About Dynamic Yield

Dynamic Yield is a platform that delivers individualized experiences at every customer touchpoint like web, apps, email, kiosks, IoT, and call centers. The platform’s data management capabilities provide for a unified view of the customer, allowing the rapid and scalable creation of highly targeted digital. It is based in Tel Aviv and New York, employs 200 people.

Its clients include furniture retail group Ikea, football club Tottenham Hotspur and online supermarket Ocado. The company works with brands across e-commerce, travel, finance and media to create what’s been described as an Amazon-style personalized online experience. Following the acquisition, it will continue to be run as a standalone business. Liad Agmon, the co-founder of the company expressed, “We’re thrilled to be joining an iconic global brand,” he said.

Changes in McDonald’s Business on Acquiring Dynamic Yield

Acquiring Dynamic Yield’s AI technology will allow McDonald’s to customise its menu displays based on variables such as the weather and the time of day. For instance, McFlurry ice creams in the heat or Sausage McMuffins at breakfast. ALong with this, customize menus based on previous customer choices.

It will also assess restaurant demand to suggest food that is faster to prepare when the kitchen is busy, or more elaborate items in less-busy stretches. Buying a company like this is also strategically significant as McDonald’s turns to big data to gain an edge over rivals in the highly competitive fast food business. This technology has the capability and the flexibility to work on all of our digital platforms, said Steve Easterbrook, McDonald’s chief executive.

SEE ALSO: Nonprofit to Capped-Profit: OpenAI’s Move To Attract Capital

McDonald’s offer put it at over $300 million. This acquisition with  Dynamic Yield would make it the company’s largest purchase since it acquired Boston Market in 1999. Along these lines, other fast food companies are also using tech to try to draw in customers. For example, Burger King ran an app-only promotion that let customers buy a one-cent Whopperwhen they were within 600 feet of a McDonald’s.

Subscribe to iTMunch to know more about various updates in the world of technology, AI, marketing, finance, HR and more!