Artificial Intelligence (AI) has transformed from a buzzword into an integral component of modern business strategies. From streamlining operations to enhancing cybersecurity, fraud prevention, content creation and customer support, AI is redefining how businesses operate. Yet, despite its evident advantages, scepticism and misunderstanding persist – especially in the franchising world.
According to a survey carried out as part of our top 100 ranking, more than 20% of franchisors1 neither use nor plan to use AI within the next year. Intriguingly, larger businesses – those with 26 to 1,000 employees – are the least likely to explore AI, whereas every micro-business respondent is either already using AI or considering it. This raises an important question: why the hesitancy among larger firms, and what can be done to demystify AI for all businesses?
It’s too risky – what if I become reliant on AI and something goes wrong?
The potential of AI often stirs up apprehension, with business owners fearing overreliance or imagining worst-case scenarios if things go awry. But AI is not here to replace your business ethos or creativity – it’s here to amplify them.
Yousef Khallili, Global Chief Transformation Officer & CEO MEA at Quant, said, “Even small steps into AI can have huge benefits. Adopt a gradual, scalable approach by launching small-scale pilot projects. These pilots allow the organisation to test AI solutions in low-risk environments and make adjustments before companywide implementation. Automating routine administrative processes is a safe place to begin. Feedback from pilot phases enable companies to refine models and lead to smooth integration without disruption of core operations.”
Equally important is establishing ethical guidelines for AI usage. Transparency, accountability and inclusivity are key. Simple, well-communicated guidelines can reassure employees and franchisees that AI is a tool for empowerment, not disruption.
How much time and money will it really save?
AI’s ability to save time is not a marketing gimmick. A 2024 Hubspot survey2 revealed that AI tools save employees over two hours a day on repetitive tasks – reclaiming as much as 25% of their time. This efficiency doesn’t just save money; it enhances decision-making by offering data-driven insights into customer behaviour and market trends.
Andrew Grill, expert AI speaker and author of bestselling book Digitally Curious thinks that AI provides an opportunity to completely reimagine how we run our franchises: “AI will provide us with an opportunity to ‘un-learn’ past, inefficient practices and give us the power to ask better, deeper questions about our business, benefiting our customers and employees.”
“By 2030, AI technologies could boost global GDP by nearly 1.2% annually, potentially adding around $13 trillion to the global economy, according to a McKinsey report3. Companies that fully embrace AI could double cash flow in the next five to seven years. Additionally, a Deloitte survey reveals that 82% of early AI adopters saw a positive financial return on their investments,” added Yousef.
By automating mundane tasks, AI frees up human teams to focus on strategic and creative endeavours, unlocking new potential for innovation and growth. The McKinsey Global Survey3 on AI estimates that businesses embracing AI could see cash flow double in just five to seven years.
Will using AI demotivate my employees?
Contrary to the belief that AI might demotivate employees, the technology can actually boost morale by removing tedious tasks from their plates. AI-powered customer service tools, for instance, provide instant 24/7 support while leaving complex issues for human agents – armed with AI-suggested insights for faster resolution.
“I personally find AI most useful in my business to get over those ‘blank page’ moments. When I’m in need of a boost to start a project, policy or documentation,” said founder of Alchemy Virtual Assistance, Suzy Sanders.
“I don’t ever use AI to simply pump out content or documents for me. This, in my view, is an unethical approach that risks integrity, authenticity and uniqueness. However, there’s no denying that AI is a valuable tool to aide both time efficiencies and the creative processes that all good businesses need!”
By avoiding AI, businesses risk falling behind in productivity, creativity and customer satisfaction. The potential for global GDP growth is a testament to the transformative power of AI. Franchisors who embrace it now will be better positioned to thrive in an increasingly competitive landscape.
For more information about the top 100 and to view our current rankings, click here.
1 Data from125 respondents to the EF100 survey 2024
2 2024 Sales Trends Report, Hubspot
3 2024 Global Survey on AI, McKinsey
