AI drive-thru firm admits heavy reliance on offshore workers
CALIFORNIA, UNITED STATES — Presto Automation, a provider of artificial intelligence (AI) drive-thru ordering systems, disclosed that over 70% of customer interactions involve human agents, despite previous claims that the technology was highly autonomous.
The San Carlos, California-based company provides voice AI drive-thru assistants to major chains like Carl’s Jr., Hardee’s, Del Taco and Checkers. With over a hundred employees and $26.1 million in annual revenue, Presto touted its AI solution as a way to combat rising labor costs.
However, recent filings revealed that off-site workers in places like the Philippines are actively monitoring orders and stepping in when needed. While presented as supplemental training, it calls into question Presto’s claims about its level of automation.
The U.S. Securities and Exchange Commission opened an investigation into Presto’s disclosures in July. In March, founder and CEO Rajat Suri unexpectedly departed. Newly appointed CEO Xavier Casanova has since laid off 17% of staff and acknowledged the extensive human involvement.
Casanova now argues that the hybrid model is a competitive strength, freeing up restaurant staff while ensuring accuracy. But the need for ongoing human support adds costs and undermines asserted labor savings.
The news highlights risks for investors evaluating AI solutions. As Presto’s stock has dropped over 60% amid the disclosures, it underscores the importance of transparency around capabilities. While AI tools hold promise for tasks like drive-thru ordering, buyers are encouraged to validate vendors’ autonomy claims rather than taking them at face value.
