Jersey Mike’s IPO documents mention the term artificial intelligence and its acronym 22 times.
It is difficult to distinguish between genuine excitement for new technology, exaggerated hype, and outright absurdity. But when a sandwich shop with Danny DeVito as its public face discusses AI in its initial public offering filings, the line has clearly been crossed.
Jersey Mike’s is the latest example.
Investors currently demand any mention of AI. Tech companies feel compelled to sprinkle references to the technology across their pitches. This applies to non-AI startups seeking venture capital just as much as Bending Spoons, which recently went public. That company specialises in purchasing older, non-AI tech firms to refresh them.
I examined Jersey Mike’s S-1 filing to see how far this pressure might push a sandwich business. There was no logical need for the company to discuss AI in its prospectus. Yet the term appears frequently.
The company cannot claim to sell AI software. Its product is submarine sandwiches. The filings suggest AI products are what investors are currently seeking, regardless of the actual business.
Despite this, the filing includes AI in its investor risk warnings. This is perhaps even more telling. The text does not explain what AI systems the company uses that could pose a danger to investors. It offers only a vague statement: “We are beginning to use AI Technologies in our business.”
As a franchise operator, the business does rely on software, which is mentioned 52 times in the document. It also references data 112 times. All businesses use these tools. The AI risk warning appears to be standard copy. It may be necessary because similar failures have occurred in the food sector. Starbucks recently scrapped an inventory tool that could not count items correctly.
I predict the risk of an AI disaster for a company that produces real sandwiches is about the same as a franchise shop getting struck by lightning. A Texas location experienced this in 2021. Weather was mentioned five times in the S-1. Lightning was not mentioned once.
What it means
Investors are forcing companies to claim AI relevance even when the technology has no place in their operations. The risk warnings remain vague and unhelpful.
