Jersey Mike’s IPO illustrates how bad the AI hype has become

AI as a Keyword

The recent IPO filing from sandwich chain Jersey Mike's has become a notable example of the current AI investment climate, with the company mentioning 'artificial intelligence' or 'AI' 22 times in its S-1 document. This move by a decidedly non-tech company highlights a growing pressure for businesses to reference AI, regardless of its centrality to their core operations, in order to meet perceived investor expectations.

The Numbers Behind the Narrative

An examination of the S-1 filing reveals that the AI references are largely boilerplate, contained within investor-risk warnings and lacking specific detail beyond phrases like, “We are beginning to use AI Technologies in our business.” The frequency of these mentions stands in contrast to other operational elements and more tangible risks faced by the franchise.

• Data: 112 mentions
• Software: 52 mentions
• Artificial Intelligence (AI): 22 mentions
• Weather: 5 mentions
• Lightning: 0 mentions

Investor Appetite and Market Pressure

This practice reflects a broader market dynamic where companies, from tech acquirers like Bending Spoons to consumer food chains, feel compelled to align with the prevailing AI narrative to attract capital. The inclusion of such terms, often framed as risk mitigation, is noteworthy given actual operational challenges, such as the AI-driven inventory tool at Starbucks that was recently abandoned. For the market, it underscores the growing need to differentiate between substantive AI integration and superficial keyword inclusion in financial disclosures.

The prevalence of 'AI' in the filings of non-tech companies like Jersey Mike's serves as a critical barometer for market froth, compelling investors to scrutinize the substance behind the terminology rather than rewarding its mere presence.