AI tools such as ChatGPT and Claudio can provide meaningful assistance to businesses. They can help with customer relations, employee productivity, research, insight and ideas, and more. Constant Contact’s Small Biz Now found that 54% of small business owners are already using AI marketing tools and 27% plan to do so in 2026. But there are traps that are becoming apparent: reliance on AI in place of personal decision-making and falling for deepfakes are a couple to watch out for. AI is here to stay and increasing in its utility in business every day. There are some very helpful things that AI can do, but there are also some problems to avoid.
The Good
As Forbes said: “AI represents perhaps the most significant leveling technology small businesses have ever had access to.” AI enables small businesses to get answers, analyze data, organize ideas, schedule and manage customers, compose content, create images, and more. AI = innovation. Constant Contact’s report found that 45% use AI to analyze data trends, 44% use it to write copy for emails and other content, and 40% use it to create images and visual content. Using AI means tremendous savings…in time and money (e.g., not having to pay professionals or use employees’ hours for research). A solopreneur can get information and perform various tasks without expensive software.
The Bad
While AI can provide meaningful benefits for small businesses, there are potential traps. Here are a few:
- Biases and discrimination. Businesses are increasingly using AI to make hiring decisions and train workers. The problem: There may be harmful biases built into the AI being used. A number of states already have laws designed to prevent “algorithmic discrimination” in hiring, onboarding, and managing employees. BrightMine has a list showing states with AI laws already on the books.
- Security threats. The integrity of your company’s data can be easily compromised once it’s uploaded to AI. And AI is being used by scammers to target small businesses. The Identity Theft Resource Center reported that these attacks were identified as the root cause of more than 40% of cyber events.
- Intellectual property issues. Because AI scans the web for information, it’s been illegally using copyrighted material to provide answers to users’ queries. I know my books and blogs have been improperly used by AI, and I’m in a lawsuit hoping to recover damages for AI violations of copyright law.
- Job displacement. It’s widely accepted (though I’m not convinced) that AI will enable companies to cut many jobs. If terminated workers can’t be retrained and find new jobs, what will this mean not only for their livelihoods but also for their ability as consumers to buy goods and services?
The Ugly
AI may give bad advice and unfortunately employees are following it. According to an EBN article, “more than a quarter of the survey’s respondents said not only did they seek out AI’s assistance for major decisions, they ignored their gut instinct that its answers were wrong and followed its advice instead.” It’s been reported that more than 41% said that acting on advice they received has led to problems.
Deepfakes and lies are prevalent on AI. Is that news story you read really true?
Final thought
AI is here to stay and will become increasingly prevalent in small business operations. Will the good outweigh the bad and the ugly? President Reagan’s philosophy of “trust but verify” is excellent advice for handling AI.
