Artificial intelligence at McDonald's & Goldman Sachs: The surprising AI offensive of the industry giants – Creative image: Xpert.Digital
From science fiction to reality: The power of AI in the modern world
The Ubiquitous Intelligence: How Artificial Intelligence is Reshaping Our World
Artificial intelligence (AI) has evolved at a breathtaking pace from a technology confined to laboratories and universities to an indispensable component of modern business and society. What once existed as a futuristic vision in science fiction films and novels is now reality, permeating virtually every sector of the economy and fundamentally changing the way we live, work, and interact. This transformation is not merely technological progress, but a profound societal shift with the potential to alter our world in the coming decades to an extent we can scarcely imagine today.
The rise of AI is not a sudden phenomenon, but the result of decades of research and development. The foundations were laid as early as the 1950s, but it is only in recent years, with the exponential growth of computing power, the availability of massive amounts of data (Big Data), and advances in machine learning, that AI has reached its full potential. These factors have made it possible to develop complex algorithms capable of recognizing patterns in data, making decisions, and even being creative – abilities traditionally reserved for human intellect.
Today, we see the impact of AI in every aspect of our lives. From the algorithms that curate our social media feeds and show us personalized ads, to the recommendation systems that suggest new movies and music, to the virtual assistants on our smartphones that answer our questions and perform tasks for us – AI is already an integral part of our digital everyday lives. But the commercialization and integration of AI goes far beyond these everyday applications, fundamentally changing business models, the efficiency of industries, and the way we interact with technology.
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Financial sector in transition: AI as a driver of efficiency and innovation
The financial sector has proven to be a pioneer in the adoption and commercialization of AI technologies. Traditionally based on data analysis, risk management, and rapid decision-making, the industry recognized early on the immense potential of AI to optimize processes, reduce costs, and develop new services. Major banks, investment firms, insurance companies, and fintech startups are investing heavily in AI solutions to secure a competitive edge and meet the increasing demands of a rapidly changing market.
An impressive example of AI's transformative power in the financial sector comes from investment banking giant Goldman Sachs. CEO David Solomon reported at the Cisco AI Summit on a revolution in the creation of prospectuses, also known as S-1 documents. What used to take a team of around six people two weeks to complete can now be 95 percent done in just a few minutes thanks to AI support. This automation frees experts from repetitive, routine tasks and allows them to focus on the remaining five percent that constitute the real competitive advantage – strategic analysis, creative problem-solving, and personalized client service. The majority of the work, which was previously time-consuming and resource-intensive, has become efficient and cost-effective thanks to AI systems.
Goldman Sachs is pursuing a comprehensive AI strategy aimed at integrating the technology across all areas of its banking operations. A key objective is to increase the productivity of its approximately 11,000 developers by 30 percent through the use of AI-powered programming tools. These tools can, for example, generate code suggestions, detect and fix errors, and automate repetitive programming tasks. Furthermore, the company plans to use AI to analyze its vast datasets—including 40 years of trading data—to gain valuable insights and make them available to clients in the form of personalized financial products and services. As one of the world's leading banks for initial public offerings (IPOs), Goldman Sachs sees the increased use of AI as an opportunity to further strengthen its market position, explore new business areas, and secure its long-term competitiveness.
However, the massive investments in AI in the financial sector are not without criticism. An analysis by Goldman Sachs itself shows that investors are increasingly concerned that tech giants like Amazon, Meta, Microsoft, and Alphabet are investing too much capital in artificial intelligence without these investments translating into corresponding revenues and profits. Last year, US technology companies spent approximately $357 billion on investments and research and development, with a significant portion of that going into AI. The market now expects these enormous expenditures to pay off and lead to measurable results. Should this not be the case, valuation declines and a correction of the high expectations surrounding AI technologies could ensue.
Despite these concerns, the potential of AI in the financial sector is immense and multifaceted. Beyond automating routine tasks and increasing efficiency, AI enables the development of new, innovative financial products and services. Algorithmic trading, where AI systems make trading decisions independently, has already become established in certain market segments and contributes to market efficiency and liquidity. In risk management, AI models can analyze complex risk factors and identify early warning signals to prevent losses and strengthen the stability of the financial system. AI also opens up new possibilities in customer service and advisory. Chatbots and virtual assistants can answer customer inquiries around the clock, offer personalized financial advice, and simplify access to financial services. Personalized financial advice, supported by AI, makes it possible to better understand individual customer needs and financial goals and offer tailored solutions. This ranges from automated portfolio management (robo-advisors) to personalized loan offers and insurance plans.
Hospitality and retail are caught up in AI fever: Redefining the customer experience
AI is also revolutionizing operations and customer experience in the restaurant and retail sectors. In an industry characterized by high labor costs, tight margins, and rising customer expectations, AI offers the opportunity to increase efficiency, reduce costs, and simultaneously improve the customer experience. Restaurant chains, retailers, and e-commerce companies are increasingly relying on AI solutions to strengthen their competitiveness and reposition themselves in the digital age.
McDonald's, the global fast-food giant, has been intensively testing the use of artificial intelligence for order taking at more than 100 locations over a two-year period. Although this specific test run has concluded, the company reaffirmed its confidence in AI-powered ordering systems. "A voice ordering solution for drive-thru restaurants will be part of the future of our restaurants," the company stated. McDonald's plans to finalize a technical solution by the end of the year and roll it out to its restaurants worldwide.
Advances in AI language models, particularly generative AI, have opened the door to natural and intuitive human-machine interactions. These models are capable of understanding, interpreting, and generating human speech, making them ideal for customer communication applications. Speech recognition is especially well-suited for ordering processes in fast-food restaurants, as the vocabulary used is limited and standardized. Modern AI systems can recognize different accents, background noise, and individual speech patterns, reliably taking orders. Generative AI, such as that used in the ChatGPT chatbot, can already formulate sentences at a human-like level, ensuring natural and pleasant customer interaction.
Competition in the field of AI-powered ordering systems for the restaurant industry is fierce. Other fast-food chains, such as Wendy's and Carl's Jr., are already experimenting with similar technologies. In December, McDonald's entered into a partnership with Google focused on generative AI. While details of this collaboration are not yet known, it underscores McDonald's strategic interest in AI and the significance of partnering with a technology giant like Google. Industry experts anticipate that AI-based ordering systems will become standard in the fast-food sector in the medium term, increasing operational efficiency and opening up new possibilities for personalized customer experiences. For example, personalized menu suggestions based on previous orders, preferences, or even current dietary needs are conceivable.
AI is also revolutionizing the customer experience and operational processes in retail. In e-commerce, AI-based recommendation systems are used to provide customers with personalized product suggestions and increase conversion rates. Chatbots answer customer questions around the clock, assist with product selection, and support orders and returns. In brick-and-mortar stores, AI-based camera systems are used to analyze customer flow, optimize waiting times, and deploy staff more efficiently. Smart shelves detect when products are running low and automatically trigger reorders. Personalized advertising on digital displays in stores targets customers and increases the likelihood of impulse purchases. The integration of AI into retail aims to make the shopping experience more pleasant, efficient, and personalized for customers, while simultaneously reducing operating costs and increasing sales.
Automotive industry in transition: AI as a key technology for the future of mobility
The automotive industry is undergoing a profound transformation driven by electrification, autonomous driving, and digitalization. Artificial intelligence plays a key role in this transformation process and is considered a crucial technology for the future of mobility. Automakers worldwide are investing billions in AI research and development to secure a competitive edge and leverage the technology's new opportunities.
General Motors (GM) recently took a significant step toward the strategic integration of AI with the appointment of Barak Turovsky as Chief AI Officer. Turovsky, who previously led AI departments at Cisco and Google, will develop and implement GM's AI strategy. His appointment underscores the growing importance of AI for the automaker's strategic direction. Dave Richardson, Senior Vice President of Software and Service Engineering at GM, emphasized the central role of AI for the company's future: "AI is central to GM's EV, ICE, and autonomous future." This statement clarifies that AI is not only relevant for electric vehicles and autonomous driving but will also continue to play a vital role for conventional internal combustion engines.
Turovsky's team will work on integrating AI software capabilities across GM's entire vehicle lineup. This includes applications such as advanced driver assistance systems (ADAS) that make driving safer and more comfortable, infotainment systems that offer personalized content and services, and predictive maintenance systems that detect failures early and optimize service intervals. GM is also using AI in its manufacturing processes to increase efficiency, improve quality, and reduce costs. Examples include AI-driven robots in production that enable more precise and faster assembly processes, and AI-based quality control systems that detect defects early and reduce scrap. Furthermore, GM is using AI for site planning for electric vehicle charging stations and to improve vehicle ordering for dealers.
The creation of the Chief AI Officer position at GM is part of a broader trend in the automotive industry to strengthen software expertise and evolve into technology-driven companies. In 2024, GM already promoted two former Apple executives, Dave Richardson and Baris Cetinok, to lead the automaker's software organization. These personnel decisions underscore the transformation of the automotive industry into one where software and AI play an increasingly important role. Integrating AI into vehicles and production processes promises not only increased efficiency and an improved customer experience, but also the development of new business models and revenue streams. For example, data-driven services related to the vehicle, such as personalized insurance offers, mobility services, or entertainment options, are conceivable. Autonomous driving, enabled by AI technologies, also has the potential to fundamentally change the automotive industry and establish new business models in the field of mobility.
Technology companies as AI pioneers: New services and business models in focus
The technology sector is the driving force behind AI development and is particularly aggressive in advancing the commercialization of the technology. Technology giants such as Google, Amazon, Microsoft, Apple, and Meta are investing billions in AI research and development and developing new services and business models based on AI technologies. These companies see AI as a key technology for securing their competitiveness, opening up new markets, and expanding their position as innovation leaders.
Google is currently testing a new “AI Mode” in its search interface that could fundamentally change the way we search for and find information. Appearing as an additional tab alongside familiar categories like “Images” and “News,” AI Mode delivers answers to search queries directly generated by artificial intelligence. Unlike traditional search results, which rely on indexing websites, AI Mode aggregates information from various sources and presents it in natural language. Its functionality is reminiscent of the integration of AI-powered chatbots and aims to provide users not just with links to websites, but with comprehensive, directly usable information.
The introduction of AI Mode could have far-reaching consequences for internet users' search behavior and search engine optimization (SEO). Previously, users had to click through numerous links to find the information they needed. With AI Mode, relevant information is bundled and displayed directly, which could lead to traditional search results losing importance. This development would fundamentally change search habits and force website operators to adapt their SEO strategies. While the increased efficiency in information retrieval could benefit users, it could simultaneously reduce traffic to external websites, potentially having far-reaching repercussions for the internet ecosystem. The question then arises: how will website operators need to optimize their content in the future to be considered by Google in AI Mode and continue generating relevant traffic?.
Amazon is investing in a completely new area of AI development: agentic artificial intelligence. The company has established a new group focused on this form of AI, which aims to automate tasks for users, eliminating the need for them to initiate actions themselves. Agentic AI goes beyond existing AI applications, which are typically limited to reactive tasks. Agentic AI systems are designed to act proactively, make decisions, and complete tasks independently, based on users' needs and goals. AWS CEO Matt Garman sees the potential for agentic AI to become AWS's next multi-billion-dollar business. Amazon already demonstrated some of these capabilities when announcing an enhanced version of its Alexa voice assistant, which is scheduled to roll out to select customers later this month. This strategic focus on agent-based AI systems could give Amazon a competitive edge and enable the company to offer innovative new services that go beyond existing AI applications. For example, AI-powered personal assistants could organize users' daily lives, automatically complete tasks, and proactively respond to their needs.
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Education and talent development: The next generation of AI experts
The increasing demand for AI expertise presents the education sector with major challenges, but also great opportunities. To meet the need for qualified professionals, educational institutions must expand their offerings and adapt to the new demands of the labor market. Universities, universities of applied sciences, and vocational schools are developing new degree programs, continuing education courses, and certifications in the field of AI to train the next generation of AI experts.
The University of South Florida (USF) has announced plans to establish the first college for artificial intelligence and cybersecurity in the state of Florida. The new college, which is still awaiting approval from the USF Board of Trustees, will offer both undergraduate and graduate programs, as well as certifications and continuing education opportunities. Approximately 200 faculty members at the university already conduct research in AI, cybersecurity, and related fields. The creation of a dedicated academic unit is expected to foster synergies and promote interdisciplinary collaboration. USF President Rhea Law emphasized the university's strategic positioning: "Through the expertise of our faculty and our strong partnerships with industry, the University of South Florida is strategically positioned to assume a global leadership role in these areas." The university plans to open the college by fall 2025.
The establishment of the college is a response to the dramatically increasing demand for skilled professionals in AI and cybersecurity. According to a USF press release, the US has experienced “a fivefold increase in demand for AI skills.” The National Science Foundation allocated more than $800 million to AI-related research last year, underscoring the growing importance of this field. The USF initiative aligns with a broader trend of integrating AI into higher education. Back in 2020, following a $70 million donation, the University of Florida announced a plan to integrate AI into the curriculum of every graduate student. The systematic training of professionals in AI and cybersecurity is crucial for economic development and national security. Companies across all industries are desperately seeking employees with these skills, and educational institutions like the USF are helping to fill this gap. Academic training in AI encompasses not only technical aspects but also, increasingly, the ethical, social, and economic dimensions of the technology. It's about not only developing and implementing AI systems, but also understanding the societal impact and using the technology responsibly.
AI in everyday life: Smart objects conquer our daily routines
The integration of artificial intelligence into everyday objects marks a new phase in AI commercialization. AI capabilities are being placed directly into consumers' hands and integrated into products we use daily. From smart speakers and intelligent household appliances to AI-powered wearables and everyday objects, AI is becoming increasingly invisible and ubiquitous in our lives.
One example of this development is the “One Smart AI Pen,” an intelligent pen unveiled on a Kickstarter campaign. This pen is advertised as the world's first writing instrument enhanced by ChatGPT integration, real-time translation, and voice control. Despite its unassuming appearance, resembling an ordinary ballpoint pen, the pen incorporates advanced technology such as an AI assistant chip, a Bluetooth chip, a rechargeable battery, a noise-canceling microphone, and a microSD card slot. Weighing just 30 grams and boasting a battery life of up to 30 hours, the pen connects to a smartphone via Bluetooth 5.2.
The Smart AI Pen offers a wide range of AI-powered features. Through ChatGPT integration, the pen can provide instant writing suggestions, generate ideas, and create email drafts. Its translation function covers more than 52 languages, enabling real-time communication across language barriers. Furthermore, the device can record dictation, summarize meetings, transcribe handwritten notes, set reminders, and create to-do lists. The integrated microphone, combined with a microSD card, allows the Smart Pen to record meetings and later convert them into text. These diverse functions make the pen a potentially valuable tool for various professional and personal contexts.
The Smart AI Pen represents a broader trend toward the “democratization” of AI, where advanced AI capabilities are becoming available in affordable and user-friendly consumer products. It is expected that in the coming years, more and more everyday objects will be equipped with AI functions, making our daily lives smarter, more efficient, and more comfortable. Examples include smart clothing that monitors our vital signs and provides personalized health and wellness recommendations, smart home appliances that automatically adapt to our needs and save energy, and AI-powered educational toys that provide individualized support and development for children. The integration of AI into everyday objects has the potential to fundamentally transform our daily lives, supporting and simplifying many aspects of our lives.
AI as a strategic partner: The co-pilot for corporate decisions
Artificial intelligence is evolving from a tool for automating routine tasks to a strategic partner for businesses. AI systems are increasingly used to analyze complex data, recognize patterns, generate forecasts, and make informed decisions. AI is playing an ever-greater role in corporate strategy and is considered a key technology for gaining a competitive edge, driving innovation, and ensuring long-term success.
One particularly valuable application of AI in corporate strategy is pricing. In today's complex and dynamic global economy, strategic pricing is a crucial factor for business success. AI technologies enable companies to analyze historical data, identify profit and loss patterns, and apply these insights to future tenders and bids. AI-based pricing optimization systems can consider complex factors such as competitor pricing, demand forecasts, cost structures, and seasonal fluctuations to determine optimal prices that maximize revenue and profit. Companies integrating AI into their pricing strategies have achieved revenue increases of 12% to 25% and margin improvements of 17% to 25%. The use of AI in tenders and RFP pricing has proven particularly successful in European markets such as Italy, Spain, France, and the Nordic countries.
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AI is increasingly becoming a game-changer in business management. To fully leverage its potential, a structured approach is crucial. Companies particularly benefit from five key strategies for successful AI integration:
1. Development of a comprehensive AI strategy
Companies need a clear vision and strategy for using AI, tailored to their specific business goals and challenges. The strategy should define in which areas AI will be used, what goals will be pursued, and what resources will be required.
2. Building a strong database
AI systems are data-hungry and require large amounts of high-quality data to function effectively. Companies must invest in building a robust data infrastructure, collecting, storing, processing, and analyzing data. It is crucial to pay attention to data quality, data security, and data protection.
3. Talent acquisition and development
For the successful implementation and use of AI, companies need qualified professionals with expertise in AI, data science, software development, and related disciplines. Companies must invest in the recruitment, training, and development of AI talent and foster a corporate culture that supports innovation and experimentation.
4. Invest in the right technology infrastructure
AI applications require a high-performance technology infrastructure that includes computing power, storage space, network capacity, and cloud services. Companies must invest in the right hardware, software, and cloud platforms to run AI applications efficiently and in a scalable way.
5. Ethical and responsible AI development
With the increasing prevalence of AI, ethical and societal questions are becoming ever more important. Companies must ensure that AI systems are developed and deployed in an ethically sound, transparent, fair, and responsible manner. This includes considering data protection, avoiding bias, transparency, and accountability.
The successful integration of AI into businesses requires a holistic approach encompassing technology, strategy, organization, culture, and ethics. Companies that master these challenges and strategically deploy AI have the potential to increase their competitiveness, drive innovation, and secure long-term success. The journey of AI commercialization and integration has only just begun, and the future promises many more exciting developments and transformative changes in business and society.
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