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In today's fast-paced world, juggling work, family, and endless to-do lists often leaves minimal time for thoughtful dinner plans. Do I carve out time to cook a fresh, homemade meal, opt for a quick fix, like pasta and sauce, or lean toward the convenience of a frozen option? Each option requires some degree of time and effort, and I choose with quality, healthiness, and personal taste in mind.
Similarly, franchises are navigating the integration of artificial intelligence (AI) and face a comparable dilemma: Should we adopt ready-made buy-off-the-shelf solutions, develop custom platforms, rely on established vendors, or embrace a hybrid approach?
As AI reshapes industries, making the right choice can define a franchise's path to growth in new ways. Let's dive into options and how to choose the best recipe for success.
AI companies provide prepackaged solutions tailored to integrate seamlessly into business workflows. Additionally, numerous third-party AI consulting companies specialize in creating custom AI bots tailored to your franchise brand's specific needs.
Pros: This approach is plug and play. There's no need for heavy lifting internally because the tools are usually well tested and reliable.
Cons: Initially, it takes significant vetting to ensure you are interacting with a quality vendor. Solutions can be generic or extremely customized with increasing costs and deployment times. The biggest con, however, is the ongoing cost of AI "credits," which normally translate into high monthly fees.
Large platforms, like Amazon Web Services and Google Cloud, allow franchises to create AI systems tailored to their specific needs, from natural language processing to predictive analytics.
Pros: The flexibility is unmatched. You can build exactly what you need without compromises.
Cons: This path demands skilled engineers, long timelines, and a willingness to invest in infrastructure. For most franchises, this is the cook-from-scratch gourmet meal of AI. It can be worth the effort but only if your team has the capacity.
Low-code platforms allow users to create AI workflows with visual interfaces, prebuilt models, and simplified templates. This empowers people with limited technical expertise to build functional tools for their networks. Using the platform's step-by-step process, you link your knowledge base, input your business logic, add some FAQs, and then test it. It's a short learning curve but often requires a lot of testing to make it customer ready.
Pros: These platforms significantly reduce the time and cost of deployment. Franchisees or internal teams can get involved without deep coding expertise. This may be an ideal solution for your internal team.
Cons: What you gain in speed, you lose in scale. Low-code platforms often come with ongoing credit costs and limits on customization, making them best suited for simpler applications.
Many franchises already depend on software partners for CRM, VoIP, or marketing automation. Asking these providers to add AI capabilities can be a natural next step.
Pros: Leveraging existing relationships can save money and avoid the pain of switching systems. Plus, you can outsource the learning curve to the vendor. They will be responsible for its maintenance and improvement.
Cons: Be prepared for compromises. Your provider's road map may not align with your needs, and delays or incomplete solutions are common.
Franchise AI decisions depend on three key factors:
At Goldfish Swim School Franchising, our AI approach depends on what the business needs. Complexity and customization usually determine our preferred path. Sometimes, we have taken one path and ended up on another. It's okay to experiment with multiple options in the new arena of AI.
There's no one-size-fits-all solution for AI in franchising. The right choice depends on your franchise's unique needs, capacity, and ambitions. AI is a powerful enabler, but as with a good meal, success starts with knowing what you want and then choosing the right ingredients.
Dennis Leskowski is chief technology officer at Goldfish Swim School Franchising LLC.