How DeepSeek Is Changing AI — And What It Means for Franchises

In the ever-evolving landscape of artificial intelligence, a new player has emerged: DeepSeek. As writers for 1851 Franchise, we decided to put this AI assistant to the test, exploring its potential impact on the franchise industry.

Our team's DeepSeek experience has been mixed. Chad Cohen, senior vice president of franchising for Mainland*, created an online login but initially encountered difficulties. "At first, I couldn't get it to work," Cohen said. "But today, it's up and running smoothly." Meanwhile, Mainland CEO Sharon Powills, opted for the mobile app but faced her own set of challenges. "The mobile app wasn't working for me at all and crashed," she said, highlighting the potential teething problems of this new technology.

DeepSeek, a Chinese AI startup, has recently made waves by surpassing many prominent AI developers globally. Its AI assistant quickly rose to the top spot on the Apple App Store, even displacing the long-standing ChatGPT. This rapid ascent has created a stir in Silicon Valley, particularly as DeepSeek claims its model was created at a significantly lower cost than its competitors.

DeepSeek's large language models boast several distinctive attributes. Despite being developed by a smaller team with considerably less funding than major American tech companies, DeepSeek is exceeding expectations with a robust model that operates effectively with fewer resources.

The efficiency of DeepSeek stems from its use of a “mixture-of-experts” architecture. This innovative approach segments the large model into numerous smaller submodels, or “experts,” each specializing in particular tasks or data types. Unlike traditional models that activate every part for every input, only the relevant submodel is engaged when its specific expertise is needed.

While the headline "Is DeepSeek Coming for Your Franchise?" might sound alarming, it's important to put this new technology into perspective. DeepSeek, like other generative AI tools such as ChatGPT, Perplexity and Claude, is not here to replace businesses or jobs. Instead, it's another tool in the ever-expanding AI toolkit that franchises can potentially leverage to enhance their operations.

Generative AI, including tools like DeepSeek, can support businesses by increasing efficiency, reducing costs, enhancing user experience and improving decision-making by facilitating data-driven insights. For franchises, this could translate to more streamlined operations, better customer service and more informed business strategies.

Like any new technology, DeepSeek comes with its share of promises and challenges. Our team's experience reflects the potential hurdles in adoption, but also the intrigue surrounding its capabilities. While it's clear that DeepSeek and similar AI tools are making waves in the tech world, they're not "coming for your franchise" in a threatening sense. Rather, they represent new opportunities for franchises to innovate and optimize their operations.

As Powills aptly put it, "It's not about AI replacing us, but about how we can use AI to enhance what we do." For franchise owners and operators, the key will be to stay informed about these emerging technologies and consider how they might be integrated to support and grow their businesses.