Jersey Mike’s, a sandwich chain with Danny DeVito as its public face, has included the term 'artificial intelligence' and its acronym 'AI' 22 times in its IPO documents, according to the source. This inclusion comes amid a broader trend where investors are showing intense interest in AI, even for companies that do not directly sell AI products. The company, which operates franchises, relies on software and data, but its mention of AI in investor-risk warnings appears to be more about meeting investor expectations than indicating a real application of AI technology. The source notes that the company's AI risk warning is boilerplate and does not explain specific uses of AI that could impact investors, beyond a vague statement that it is 'beginning to use AI Technologies in our business.'
The source highlights that while AI is a hot topic, the inclusion of AI in Jersey Mike’s IPO documents is largely symbolic, given the company’s core business of selling submarine sandwiches. The source also points out that other food companies, like Starbucks, have faced issues with AI tools, such as an AI inventory tool that was recently scrapped. Despite these real-world examples, the source suggests that the risk of an AI disaster for a company like Jersey Mike’s is minimal, comparing it to the risk of a franchise shop being struck by lightning, which actually happened in Texas in 2021. The source notes that the word 'weather' was mentioned five times in the S-1, but 'lightning' was not mentioned at all.
The source discusses the broader trend of AI hype, where companies feel pressured to incorporate AI into their pitches, even if the technology is not central to their operations. This phenomenon is not limited to Jersey Mike’s, as the source mentions that non-AI startups raising venture capital also face similar pressures. The source concludes that the inclusion of AI in IPO documents is more about meeting investor expectations than reflecting a genuine use of AI technology.
Source: techcrunch
