McDonald’s (NYSE:MCD) has announced plans to significantly boost its artificial intelligence (AI) investments by 2027, with India playing a crucial role in its strategy.
McDonald's Expands AI Footprint in India, Targets Global Locations
The fast-food giant, which has been operating in India since 1996, is looking to expand its AI capabilities in the country. The company recently established a global office in Hyderabad, in South India, aiming to make it the largest outside the United States.
Check out the current price of MCD stock here.
“We’re still in the early stages, so it’s hard to pin down the exact investment,” said Deshant Kaila, McDonald’s head of Global Business Services operations. The company is currently deploying AI to verify orders and reduce errors at 400 restaurants, with plans to expand the system to 40,000 locations globally by 2027, according to Durga Prakash, head of technology for global offices.
McDonald’s is also leveraging AI tools for sales forecasting, pricing decisions, product performance assessment and the development of a personalized app that would operate globally. Kaila noted that while the focus in India will be on building the AI team, the majority of the spending will be directed towards technology and tools rather than personnel.
McDonald's Responds To Revenue Dip With Expansion Push, New Beverage Line
This move comes as McDonald’s is grappling with challenges on multiple fronts. In May 2025, the company reported a 3.4% year-on-year decline in Q1 revenue due to tensions in the Middle East. The ongoing war adversely affect the company’s systemwide sales and revenue, particularly in the International Developmental Licensed Markets, where most restaurants operate under developmental licenses or affiliate agreements.
In the same month, McDonald’s announced a massive hiring drive to add 375,000 employees across U.S. locations as part of its aggressive expansion plans.
Recently, the fast-food giant forayed into the $100 billion beverage market with a new lineup in July 2025 after its December 2023 pivot did not meet expectations. Now, the company is gearing up to introduce a new range of colorful iced drinks, including Creamy Vanilla Cold Brews, Popping Tropic Refreshers, and “dirty sodas” with flavored syrups and dried fruit.
The AI investment could be a strategic move to streamline operations, improve efficiency, and boost sales amid these challenges.
Benzinga Edge Stock Rankings shows that McDonald’s had a strong price trend over the long term but not short or medium term. Its momentum ranking was 63.07, whereas its growth ranking was poor at 80.34; the details of other metrics are available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
