AI is becoming an essential tool for many business owners, including franchisees. Implementing AI software into your business workflow can be a huge boon when used correctly, increasing efficiency, reducing costs, and improving productivity by automating redundant tasks. It can do anything from automating workflows to helping you craft a business proposal. However, when AI integration is done poorly, it can frustrate employees, turn off customers, flatline productivity, and ultimately waste significant time and money. If Franchisees plan to implement AI software into their business, it is essential that they put a lot of thought into the process so they can do the right things and avoid the wrong things. AI, like any tool, can help or hurt your business depending on how you use it. Here are a few things I recommend you do and avoid when integrating AI software into your franchise location.
Do: Recognize that AI technology is new and has limitations.
When you begin researching AI software, you’ll quickly learn that companies are eager to showcase all the amazing ways their software can benefit your business. They will promote a world where AI can eliminate redundant tasks, keeping you and your team operating at peak efficiency. These are always ideal scenarios, and it’s important to understand that while AI can be a powerful tool, it won’t suddenly organize a chaotic business. The industry is currently experiencing rapid changes, and AI technology is constantly evolving. However, the major issue with most AI software today is that these products are often much newer than the problems they aim to solve. Many franchisees face a five-year problem, yet they hire an AI company that has only been around for 18 months. You’re integrating this exciting new technology, but it’s wise to approach it with some skepticism. If something is brand new, it’s largely unproven, and that’s an important perspective to keep in mind when adopting AI tools. Don’t assume that the first software you try will save your business. Instead, remain skeptical and demand proof from the company that their technology is the right fit for you.
Don’t: Start with a tool before identifying a problem
You wouldn’t buy a hammer and then wander around looking for something to hit. You’d first identify a problem—say, a loose board—and then pick the right tool to fix it. The same logic applies to AI integration. Start with the problem, not the product. Never ask whether AI is right for your franchise; instead, define the issue you’re trying to solve and look for the technology that best addresses it. There’s no one-size-fits-all AI solution. Some tools excel at coding, others at writing, analysis, or process automation. You wouldn’t invest in an AI built for developers if what you need is one that streamlines your operations. Ask yourself: What outcome am I aiming for? Do I want to automate repetitive tasks, improve governance, or enhance customer service? Understand your franchise’s real pain points first—then choose AI that fits the job.
Do: Feed it the right data
AI can only be as effective as the information you provide. The more specific you are about your problem—and the more relevant, accurate details you share about your business—the better AI can help brainstorm solutions. Open-ended questions often lead to open-ended answers. You can’t simply ask an AI, “What should I do about my sales?” without context. You’re asking a predictive model to guide your franchise when it knows almost nothing about it. You also can’t just buy AI software off the shelf and expect it to create a perfect business strategy with minimal input. Outline what your business does and provide materials that have been filtered for accuracy and relevance—such as current reports, pricing sheets, or customer summaries—so AI is working with real signal, not noise. AI is most powerful when it helps you clarify your own processes, but to use it efficiently, you must first understand them. Instead of asking, “What should I do about sales?” try, “This is what I think my franchise does. What might be missing in my sales process?”
By giving AI specific, high-quality information and asking targeted questions, you’ll get more useful insight—and ensure it reflects the real state of your business rather than assumptions.
Don’t: Substitute chatbots for customer service
AI chatbots are now common in customer support, e-commerce, and virtual assistance. They can be valuable behind the scenes, helping employees respond faster and more accurately. However, chatbots should not replace direct customer engagement. In my view, chatbots are rarely effective if your goal is to show customers you genuinely care When people are frustrated or need real help, they want empathy, not automation. Reputable companies demonstrate care through personal interaction, not avoidance. Use AI to enhance your customer service—improving human response time and consistency—but avoid using it as the primary interface with customers.
Do: Include employees in the integration process
Including employees in the AI integration process is crucial for achieving good results. This means gathering feedback from everyone on your team. The challenge every business faces is that while AI can assist with tasks, it isn’t a tool that can solve everything. Employees often find creative, unique, and sometimes odd ways to do things, and an owner can’t possibly account for these without their team’s input. You don’t want an AI-created automated process to suddenly make your employees’ jobs harder because you never consulted them about their workflows. AI should be a tool that makes their jobs easier.
It is also crucial to involve employees in the process so they understand that AI is being introduced to assist them, not replace them. Whether we like it or not, many people still strongly resist AI in the workplace. Some staff may refuse to perform a task if they believe AI poses a threat to their jobs. Being transparent and honest about your franchise’s AI implementation and including everyone in the process ensures that your team recognizes AI is here to support them, not take their jobs.
Don’t: Integrate behind the franchisor’s back
As a franchisee, you need to consider your franchisor’s needs. Don’t invest a lot of money in AI integration without their approval. Write an AI integration plan that highlights how AI can improve your franchise’s efficiency. Don’t hesitate to share what you believe truly works for your location. If your idea is strong enough, they might adopt your process nationwide.
AI software can be a great asset or a serious setback for your franchise, depending on how you implement it. Understand AI’s limits, provide it with the right info, and keep your team and franchisor engaged throughout the process. Follow these steps to avoid wasting time and money on ineffective AI integration.
Alex Radulovic is the founder of PurpleOwl in Scottsdale. They specialize in building custom software for small and medium-sized businesses. Purple Owl has been helping business owners from across the country build software for nearly a decade.