Why did Pizza Hut's AI delivery system fail?
Pizza Hut's Dragontail system gave gig drivers real-time visibility into order timing and pay, and drivers rationally used that information to cherry-pick deliveries. On-time rates reportedly fell from around 90% to near 50%, because the system optimized routing math without modeling how independent drivers would react to it.
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Companies Put AI in Charge. Now They’re Paying for ItPizza Hut and Klarna handed AI the keys to real operations. Here's why both deployments backfired — and what actually works instead.
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