The big debate: should businesses hold back on AI adoption?

The rush to roll out AI is backfiring on some businesses whose projects are failing to deliver the desired results. Is it time for a more measured approach?

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The adoption of AI has become synonymous with progress and innovation. Just over half (59%) of companies surveyed in IBM's 2024 Global AI Adoption Index are exploring or deploying AI and plan to accelerate their investments in such projects. But, in their eagerness to adopt this new technology, some businesses' AI projects are ending in failure.

McDonald’s recently decided to abandon its AI drive-through trials after videos of mistaken food orders went viral, including a customer receiving ice cream topped with bacon and another receiving £166 worth of unwanted chicken nuggets. The fast food giant, which has been testing voice recognition technology to process orders since 2021, will be removing its AI system by the end of August.

In February, Air Canada had to compensate a customer after its chatbot misinformed him about its refund policy. A small-claims court agreed with his claim that the AI assistant had falsely assured him that he could secure a discounted air fare.