Article/Mention

Coldwell in Franchise Times: ‘AI Use in Franchising Prompts Big Legal Questions’

April 02, 2024

Haynes and Boone, LLP Partner Deb Coldwell was quoted in an article in Financial Times discussing the questions that are arising from the use of artificial intelligence in franchising.

Read an excerpt below:

“There’s tremendous opportunity with franchise systems,” said Deborah Coldwell of Haynes Boone. “If you’re thinking about the things people have to do, such as collecting and evaluating customer data, that’s certainly an area where brands can use AI.” …

Technology isn’t just coming into play with the franchise clients attorneys work with, but in their domain, the courtroom, as well. Coldwell said the subject has come up in the legal realm, with some judges barring AI-generated case filings.

“One of the first orders to come out was in north Texas by Judge Brantley Starr, who banned lawyers from submitting AI filings that have not been reviewed by a human,” Coldwell said. “The reason is sometimes an AI program could pick up confidential information that’s not to be disclosed.” 

“In the litigation sector, the courts also don’t want you to be taking that from something that doesn’t have a duty to its client to tell the truth and come up with legal arguments,” Coldwell continued. “But, in the actual business world, you can improve all kinds of things, from customer service to predictive analysis of trends.”

To read the full article in Franchise Times, click here