What-Franchise-Issue-20.1

Steph Gutmann, head of copywriting at Coconut Marketing and TimMorris, founder of Pinnacle debate the real usefulness of AI and whether it really has a place in franchise businesses Improving efficiencies or dumbingdown… Dowe reallyneedAI inbusiness operations? The foundation of AI is a glorified Crtl+C and Ctrl+V programme. So, are people breaking more rules than they realise? As a copywriter who spends time researching ideas for content creation, I don’t think AI is as useful as people believe it is. Unless you work in computing, there’s limited understanding of what AI is: a programme designed by humans to scan through everything online in seconds using algorithms. This is a time-saving bonus – agreed. However, the “intelligence” element of AI is inaccurate. Intelligence infers original thought… which AI doesn’t have. As a result, over-use has led to: 1) Increased plagiarism: sourced data is regurgitated into content, then copied and pasted, often without being checked, into professional documents and content. The ethical implications of the lack of transparency of where the written words have come from is worrying. 2) Reduced privacy: AI searches through tons of data sources in seconds, collecting your personal data for “AI training” and “enhanced user experiences”. 3) Oversimplified content: I’ve seen experts in their field push out AI-generated content which doesn’t reflect the depth of their human knowledge. 4) Biased algorithms and social manipulation: programmed by people who build-in, either intentionally or subconsciously, biases.We’re already seeing the spread of misinformation, and “auto-generated reviews” focused more on the negatives than the positives of businesses. 5) A lack of the brand and individual voice. AI makes everything sound the same – it’s not programmed to reflect you. I’ve purposely not focused on the more sinister impacts of AI, including the threat to jobs – especially within the creative sectors – nor why original developers are speaking out against it. But, with all the hype around using AI, an unregulated system, are we in danger of dumbing down franchising and our businesses? In November 2022 the first LLM (Large Language Model) was quietly released to the general public. By February 2023 the whole world was talking about this new technology and how it could change the way we do business. At the time it seemed this new technology was restricted to being able to write content. BUT businesses must continuously innovate to stay competitive, and Artificial Intelligence (AI) has emerged as a game-changing tool. AI provides companies with the ability to optimise operations, improve customer experiences, make data- driven decisions and significantly improve efficiencies, enabling them to scale and adapt in ways that were once unimaginable. One of the primary reasons businesses should embrace AI is its ability to streamline operations. Automating repetitive tasks such as data entry, inventory management, or customer support, companies can significantly reduce operational costs and increase efficiency. AI-powered chatbots can handle routine customer enquiries, freeing up human employees to focus on more complex and value-added tasks. The need for outsourced services can often be reduced or curtailed entirely. AI-driven analytics can also process enormous datasets at incredible speeds, identifying patterns, trends, and opportunities that might otherwise be missed. This allows businesses to make smarter, more informed decisions, leading to better outcomes and greater profitability. One crucial area is using AI to enhance customer experience. Through personalised recommendations, predictive analytics, and responsive services, AI allows businesses to meet customer needs more effectively. E-commerce platforms leverage AI to recommend products based on a customer’s past behaviour, increasing the likelihood of sales and fostering loyalty. As AI technology continues to evolve, businesses that fail to adopt it risk falling behind, while those that do will be well-positioned for long-term success. Steph Gutmann Steph is the head of copywriting at Coconut Marketing – an agency which specialises in franchise clients. She is also the head of communications at EWIF. TimMorris Tim is a franchise growth support specialist and conference speaker. He aims to enhance franchisor support for high-performing franchisees through peer groups. “The “intelligence” element of AI is inaccurate. Intelligence infers original thought…which AI doesn’t have” “Companies generate vast amounts of data, but deriving meaningful insights can be challenging without tools” 82 WHAT FRANCHISE Issue 20.1 Debate