Taco Bell & McDonald’s Fast Food AI Fails
What We Can Learn When Big Brand AI Implementation Goes Wrong
When major corporations stumble repeatedly, visibly, and predictably, we have to ask harder questions about decision-making at the highest levels. People run brands, and humans make mistakes. We’re not here to be critical. We’re here to learn from their expensive branding blunders.
The past year delivered a troubling parade of brand failures. From Jaguar’s rebrand that confused loyal customers and critics alike, to Cracker Barrel alienating its core audience with tone-deaf messaging.
Joining the list this year: Taco Bell and McDonald’s big brand AI fails in customer service and marketing.
Taco Bell’s Drive-Through Disaster: Big Brand AI Fail
Taco Bell has the internet buzzing as people test (and mock) its rollout of AI Bot drive-through order takers.
The Verge reports that Taco Bell is rethinking its rush into AI-powered drive-throughs after viral videos exposed the technology’s very human flaws. Since 2023, the brand rolled out voice AI to more than 500 U.S. locations, promising faster service and fewer errors. Instead, millions watched as the system collapsed under absurd orders, like a customer requesting 18,000 water cups or drivers being stubbornly badgered to add more drinks.
Interestingly, in 2024, the Guardian reported that Yum Brands, parent company of Taco Bell and KFC, Yum Brands, announced that it was instituting an “AI-first mentality” in its fast-food restaurants. Here’s where a BRAND-FIRST mentality puts service and reputation before cost-cutting customer service.
It’s a small but telling example of a bigger pattern: global brands pushing AI into highly visible customer experiences before it’s ready, then paying for it in public. When experimentation happens at scale, brand trust becomes the testing ground—and that’s an expensive place to learn.
McDonald’s Netherlands: An AI-Generated Christmas Nightmare
Most recently, McDonald’s pulled an AI-generated ad so poorly executed that it sparked immediate ridicule.
The agency, Sweetshop, defended the ad as a valid film. “For seven weeks, we hardly slept, with up to 10 of our in-house AI and post specialists at The Gardening Club [our in-house AI engine] working in lockstep with the directors,” Sweetshop’s CEO said when responding defensively to criticism. (Futurism.com)
Perhaps it might have resonated better with people if it had a positive message: “It’s the most terrible time of the year,” They meant it to be funny and absurd, but instead it was obnoxious and insulting with tell-tale signs of AI work. Such a wasted opportunity to connect with brand fans!
McDonald’s has pulled the Christmas Fail ad, but you can still find it, watch it here.
What makes the McDonald’s case particularly instructive is the response from their team. When pressed about the decision, they admitted they suspected the campaign might fail but proceeded anyway, curious to see what would happen.
This admission reveals a fundamental confusion about the purpose of brand stewardship. Does McDonald’s imagine that it’s so big that it can afford to “see what would happen” with a poorly executed AI commercial?
Most of us don’t have the deep pockets and global brand equity to accommodate that kind of experimentation. And isn’t building and protecting brand equity the primary objective of the creative team?
Big Brand AI Implementation Goes Wrong: The “Could vs. Should” Dilemma
The introduction of generative AI into copywriting, imagery, and video has opened the door for people to bruise their brands with AI.
In the movie, Jurassic Park, Dr. Malcolm’s warning should resonate with every brand manager: “Your scientists were so preoccupied with whether or not they could, they didn’t stop to think if they should.”
Missteps like these erode something far more valuable than a single campaign budget: TRUST.
The Brand Manager Helps Secure the Fragile Piece of the Brand: Trust
According to a 2023 Edelman Trust Barometer study, 67% of consumers say they must trust a brand to buy from it, and 53% will stop purchasing after just one or two trust violations. The stakes are real. Trust, once lost, requires exponential effort to rebuild.
Image Credit: Edleman Trust Barometer
“A brand is not a logo. A brand is not a corporate identity system. It’s a person’s gut feeling about a product, service, or company. Because it depends on others for its existence, it must become a guarantee of trustworthy behavior. Good branding makes business integral to society and creates opportunity for everyone, from the chief executive to the most distant customer.” – Marty Neumeir, The Brand Gap
The pattern across these failures reveals a common thread. People chase novelty without determining its necessity. Executives and marketers can be tempted to pursue trends without a clear purpose or connection to their audience. The intent to innovate is noble, but if it results in shattered trust and positioning, the cost is too high.
A Brand is Like a Tree: Nurture and Protect What Takes Years to Build
A tree takes years to develop strong roots, a sturdy trunk, and branches that provide shelter. A mighty oak, that took 150 years to gain its stature and beauty, can be felled in an afternoon.
Brands operate under the same principle. Years of careful cultivation create equity, recognition, and loyalty. A single poor decision, executed without reflection, can undo that work with shocking speed.
The Pressure for Business to Innovate with AI: A Double-Edged Sword
Brands are facing immense pressure to adopt new technologies, especially AI, to stay competitive. This pressure comes from multiple sources:
- Market expectations: Consumers increasingly expect personalized, efficient experiences that AI promises to deliver.
- Competitor actions: When industry rivals implement AI solutions, it creates a “fear of missing out” among other brands.
- Investor demands: Shareholders often push for the adoption of cutting-edge technologies to boost efficiency and profitability.
- Media hype: The constant buzz around AI in business publications can create a sense of urgency to implement these solutions.
- Unrealistic Expectations: The media hype above contributes to the mistaken belief that AI can do everything.
What we can learn from Taco Bell and McDonald’s is that rushing to adopt AI without proper planning can backfire spectacularly.
To BRAND-FIRST means we balance the need for innovation with the imperative to protect our purpose, mission, core values, and above all, our customer relationships.
David vs. Goliath: How Smaller Brands Successfully Approach AI
While global corporations can absorb the costs of AI experiments gone wrong, smaller brands must be more strategic in their approach:
- Focused implementation: Instead of broad rollouts, target specific pain points where AI can make a measurable difference.
- Gradual adoption: Evaluate the need and have realistic expectations of what the AI tool can deliver. Start with off-the-shelf AI solutions, testing and refining before considering custom development.
- Emphasize the human touch: Use AI to augment, not replace, human interactions, maintaining personal connections with customers.
- Transparency: Consider turning the AI journey into a marketing opportunity, inviting customers to provide feedback on new AI-powered features.
Example: A local bookstore might use AI for inventory management and personalized recommendations, but keep human booksellers for customer service and curated selections.
Success Stories: When Business Gets AI Right
Not all AI implementations in marketing lead to public relations disasters. Here are some examples of brands successfully leveraging AI:
- Data-Driven Solutions: A Michigan-based manufacturing client recently told us that their engineers are leveraging AI to help them analyze data to prevent unplanned downtime and reduce scrap.
- Spotify’s Discover Weekly: This AI-driven playlist feature has become a cornerstone of the platform’s user experience, demonstrating how AI can enhance product offerings when aligned with user needs.
- Grammarly’s Writing Assistant: By using AI to provide real-time writing suggestions, Grammarly has become an indispensable tool for millions, showcasing how AI can add value in content creation.
These success stories share common threads: they focus on enhancing rather than replacing human experiences, they solve genuine customer pain points, and they were implemented with careful consideration of the brand’s core values and customer expectations.
The key takeaway is that successful AI implementation in marketing isn’t about chasing the latest trend or cutting costs. It’s about thoughtfully applying technology to create genuine value for customers while staying true to the brand’s identity and promise.
The Path Forward: Thoughtful Innovation vs. Reckless Experimentation
Clearly, experimentation with AI doesn’t always lead to a PR nightmare. Marketing innovation requires testing boundaries. But when executive and creative teams take their brand equity for granted. Every action reverberates. Every choice sends signals about priorities, values, and competence.
“Every day you’re building your brand by the things you do.” – Linda Kleist, Identity Creative
The real question for any brand considering a bold move is not “Can we do this?” but “Should we do this?” That distinction matters. It separates thoughtful risk from reckless experimentation. It honors the relationship between brand and customer as something sacred, not disposable.
If your team cannot answer the “should we” question with clarity and confidence, the path forward is simple: pause, gather perspective, and seek counsel. Brands that thrive long-term recognize when they need external wisdom to make better decisions.
About Identity Creative
Identity Creative is a team of creatives who are helping B2B companies fuel growth with purpose through our efficient BrandFIRST process. We work with manufacturing, industrial, and professional service brands to clarify messaging, refine strategy, and make decisions rooted in purpose rather than impulse. If you’re unsure whether your next move will build or bruise your brand, let’s talk.
AI should empower, not replace, the human side of business. Contact us about joining our free StrongerBrands AI in-person and online meetups!
