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Pizza Hut Franchisee Sues Over AI Delivery System, Alleges $100 Million in Damages

February 2, 2025 | Gizmodo AI
Pizza Hut Franchisee Sues Over AI Delivery System, Alleges $100 Million in Damages
A new lawsuit is just the latest example of why AI probably shouldn’t be used for everything. A Pizza Hut franchisee claims the chain’s AI-powered delivery system, meant to optimize orders and speed up deliveries, instead backfired and cost it more than $100 million. Earlier this month, in the Texas Business Court, Chaac Pizza Northeast sued Pizza Hut after its restaurants were forced to use an AI delivery management platform known as Dragontail. Pizza Hut