AI in Business: A Lawyer’s Take on the Opportunities and Risks for Entrepreneurs
Artificial intelligence (AI) isn’t just a buzzword anymore; it’s becoming part of everyday business life. From chatbots that answer customer questions, to software that helps you draft marketing copy, to tools that can review or draft documents, AI is helping businesses work faster, cheaper, and sometimes smarter.
But like any powerful tool, AI comes with both positives and pitfalls. As lawyers who work closely with business owners, we’ve seen where AI can be a game-changer, and where it can quietly create legal headaches and financial and personal brand nightmares.
Where We Can See AI Working Well for Businesses
AI has a lot to offer entrepreneurs, especially when it’s used thoughtfully. Some areas we see more success include:
Automating Repetitive Tasks
AI can take care of routine admin, like transcribing meeting notes, sorting emails, or generating template documents—so you and your team can focus on higher-value work. Just check to ensure the software you have chosen is up for the task and that where the information is being collected, used, disclosed or handled doesn’t breach any privacy laws or your privacy policy.
Customer Service & Engagement
Chatbots and virtual assistants can handle common customer questions, freeing up staff time and giving customers quick responses. Again, take care in the questions you are able to automate and respond to, as they are basic ones that will save you time and not mislead or confuse, and do random audits to ensure it is working as intended and giving you the benefits you want.
Market Insights
AI tools can analyse trends, predict customer behaviour, and spot gaps in the market much faster than manual research.
Content Generation (With a Human Touch)
AI can help brainstorm ideas, draft basic copy, or structure reports. The key is having a human review and edit before it goes public—both for accuracy and for brand voice.
Where Caution is Needed
While AI can be an asset, it’s not without risks, especially in the legal and commercial space. Some areas where we recommend extra care include:
Confidentiality & Privacy
Feeding sensitive client or business information into AI tools (especially free online ones) could risk breaching privacy laws, your privacy policy or confidentiality obligations. Once information is uploaded, you often lose control over how it’s stored or used.
Intellectual Property
Just because AI created it with your input or direction, doesn’t mean you own it. Depending on AI program’s terms, as well as the tool and how it was trained, there may be copyright issues—especially if the AI has used third-party material.
Accuracy & Reliability
AI can “sound” confident but still be very wrong. Even one small mistake may cost millions. Blindly relying on AI-generated answers, figures, or legal interpretations can cause expensive and potentially business and personally-destroying mistakes.
Bias & Compliance
AI can unintentionally embed bias from the data it’s trained on, leading to discrimination risks or compliance breaches—particularly in recruitment, lending, or customer targeting.
A Lawyer’s Practical Tips for Using AI in Business
If you’re exploring AI, here are a few of the risk-smart steps we recommend you keep in mind:
Read the Terms of Use
Understand who owns the output, where your data is stored, and how it might be used.
Don’t Upload Confidential Information into Public Tools
If you need to process sensitive data, use secure, enterprise-grade AI solutions.
Always Have a Human Review
AI should be a starting point, not the final word, especially for legal, financial, or safety-critical information.
Document Your AI Use
If you’re in a regulated industry, keep records of how AI tools are used and decisions are made. In some industries, you may now or soon in the future be required to disclose that you have used this in your terms.
Check costs and be wary of the rabbit hole
For riskier or complicated matters or documents, sometimes it is not actually time or financially cheaper to get something done by AI then have it checked afterwards. If you do want to use AI then check with your advisor what parts they suggest you can streamline and/or what are the different cost options. It could be cheaper if done right.
Stay Informed
AI regulations are evolving quickly in Australia and internationally. Having a lawyer in your corner can help you avoid accidental breaches.
The Bottom Line
AI can absolutely help businesses grow faster, operate more efficiently, and compete more effectively, but only if it’s used with clear boundaries and an understanding of the risks.
We believe the best approach is to treat AI as an assistant, not an autopilot. Use it to speed up your workflow and generate ideas, but keep human oversight for decisions that carry legal, financial, or reputational weight.
If you’d like to explore how AI could fit into your business strategy but without creating legal headaches, contact us to speak to our legal team that understands both business strategy and the evolving technological landscape.
Please note that this is a general and brief update; it does not purport to be comprehensive legal advice of all information and/or relevant to your circumstances. Consequently, specific legal advice for each of your circumstances should be obtained first before taking or not taking any action with respect to this area.