Last week one of the world’s largest restaurant chains had a technical outage causing serious problems that lead to their customers not being able to place orders. With over 40 000 restaurants globally and with roughly $55 million in daily sales the impact of the event could have been huge.

So, what happened?

With over 70 million customers every day, the restaurants Apps and self-serving checkouts being the main way of ordering and paying for the dinner were out of service, making their business model quite fragile to technical failures. Some of the restaurants were even forced to shut down.

However, some restaurants in the restaurant chain had a backup plan and a system that made it possible to continue selling their food. By having good preparation and thinking and planning in advance, some restaurants were able to continue serving food without being economically affected by the technical failure.

It’s the same when it comes to AI, you should absolutely have a backup plan and a backup system in case something goes wrong. One of the most important things to know as a decision maker is to understand what happens if your AI stops working and stops delivering the results you desire. Ask yourself, if changes occur that could affect the reliability of your AI, how long will it be until you are back on track?

How big were the costs?

The total costs are not just related to the sales, let’s consider an organization that has a revenue of 3 billion dollars, then the daily sales is about 10 million dollars if evenly distributed across the year. If their business system were to go down for one day, they would lose 10 million dollars in sales. But it is not enough, the incident may have damaged the company’s customer relations, losing its reputation and created a bad image, these costs are often much higher than the lost revenue.

How to reduce the risks?

That is why when you are implementing and using AI in your organization, you need to learn how to minimize the risks from AI that may affect your image, reputation, and customer relationships. By having a great knowledge about how to manage AI, you can make better and more informed decisions and will be less affected by technical outages.

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John Ramstedt

Engineer – Bachelor of Science in Computer Engineering

Member of Mensa, AI Architect, Board Advisor

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