Navigating the Future: Balancing the Benefits and Risks of AI in Franchising
While growing up I remember how my family would gather around the phone on a Sunday night and make their weekly call to family members who lived far away. Sundays offered special call rates to call overseas or to another province and so for many families, this was a regular event.
My husband recently went to visit his mom in Japan and in our daily conversation on Whatsapp he tells me about a restaurant his mom frequents that has a robot waiter and the day he went to check it out, the robot was not serving. What was interesting for me is how normal this had become for his mom who lived in a time without phones, and we had to send letters by post. Soon robots serving us at restaurants will be the norm together with robot chefs who will be preparing our food.
Implementation of new products or systems often starts with large companies who like to be seen as forerunners in embracing new technologies to increase the bottom line. To celebrate the Chinese Lunar Year MacDonald’s used AI technology to connect with its customers where people can experience 3D Art in their living rooms by scanning a QR Code. For a moment I’m wowed with possibilities and then reality hits and I realise how close we are to becoming obsolete. In fact many of us are already obsolete. Myself included.
Franchising has long been a successful business model for entrepreneurs who want to run their own business but with the support of a well-established brand. However, with the rapid advancement of technology, especially AI, franchisors and franchisees alike must navigate the new landscape of doing business in the digital age.
On one hand, AI technology offers various benefits for franchisors and franchisees such as increased efficiency, cost savings, and improved customer experience. AI-powered robots can handle mundane tasks such as taking orders and serving food at restaurants, freeing up human employees to focus on higher-level tasks. AI chatbots can provide instant and personalized customer service, reducing wait times and improving the overall customer experience.
However, with the rise of AI, there is also a risk of job loss for human workers and a potential for increased surveillance and loss of privacy. AI algorithms can also perpetuate biases and discrimination if not programmed and monitored carefully. As franchisors and franchisees embrace AI technology, it is important to strike a balance between maximizing its benefits and minimizing its risks. This means carefully considering the ethical and social implications of AI, as well as incorporating measures to protect the privacy and rights of employees and customers.
One way to do this is to prioritize human-centered design in the development and deployment of AI technology. This means taking a user-centered approach and considering the impact of AI on human well-being, rather than solely focusing on maximizing efficiency and profits. Another way to balance the benefits and risks of AI is to prioritize education and training for human employees. As AI takes on more tasks and responsibilities, it is important to equip employees with the skills they need to adapt and thrive in the new digital landscape.
In conclusion, while AI technology offers numerous benefits for franchisors and franchisees, it is important to carefully consider its potential risks and impacts on human well-being. By striking a balance between maximizing its benefits and minimizing its risks, franchisors and franchisees can navigate the future of doing business in the digital age.
Romany Thresher is a strategic thinker and systems organizer who helps businesses streamline their digital operations, especially around online events and customer engagement.
She supports you in setting up and managing your online platforms — making sure you collect the right information to better understand your audience and improve their experience. Whether it’s through digital strategy, networking, or personal development, she thrives when offering insights that shift mindsets and spark positive change.
