The SEC is currently investigating Presto Automation regarding certain aspects of its AI technology. This case highlights a growing trend of companies marketing their services as AI solutions, when in reality, they are outsourcing work to countries with lower labor costs. This has raised concerns about the potential replacement of staff by cheaper labor forces, rather than by AI technology.
Key takeaways:
- Presto Automation, an AI-powered drive-thru company, claims to be a leading labor automation technology provider, but recent filings reveal that over 70% of orders are completed by off-site human workers, not AI.
- The company uses workers in countries with lower labor costs, such as the Philippines, to complete orders for fast food restaurants like Carl’s Jr., Hardee’s, Del Taco, and Checkers.
- There is a growing trend of AI companies marketing their services as automated, when in reality they are using human labor from countries with lower labor costs. This practice is often concealed by the companies.
- Despite fears of AI replacing human labor in the restaurant industry, the reality is that companies are simply outsourcing labor to cheaper markets, not necessarily replacing it with AI technology.