A Growing, semi-cause for concern AI Trend For New Business

Something that I have noticed happening, a completely explainable phenomenon is that with the amount of Large Language Models out there, tons of people are rushing to incorporate businesses because AI can bring an idea to life; kind of.

Let's be real, AI has so many uses that people are genuinely building some really awesome things. The latter can also be said, that some folks are building some genuinely terrible, trash-like things. However, there is risks in everything that we do from using various AI models, to building a company. I want to highlight some risks that we are seeing:

• Having AI build your entire business. AI can do a lot. It can build apps, it can build websites, it can help check your tone in emails among many, many other things. But AI cannot make every decision. AI can't understand the human elements within business. Real human insight is beyond important. AI doesn't understand your local market, how to properly sell to YOUR customers. It just uses a generic, what might work approach.

• AI is great at building Proof-of-Concept software but it gets a lot

semi-wrong. We have seen incorrect data continuously populating. Non- logical coding languages being used for large datasets. Or datasets that will grow so much that the coding language the AI model chose will not be able to process it quick enough (think Bigdata). AI has no concept of understanding how "easy to use" a website or app is to the common user. There are case-studies that companies have to do to fine-tune this over and over and over and over. AI also doesn't really optimize code all that well. A lot of the time it is adding lines and lines of code to do something in the same language you can do in half the lines, with comments for easier editing later on. Keep in mind, AI tends to add "fluff" to your code base

AI brings a lot of "false confidence" to the table. For example, maybe AI can say something is completely possible when there is no real data or fact-checking taking place. This can lead to false promises to potential customers or business partners which then causes a trust issue. Not only that, but how AI communicates can be fairly convincing when asking questions around topics you don't truly understand.

Even asking an AI system (Claude) about AI risks in business, one of the first items that pops up for me was:

"hallucination in high-stakes decisions".

This goes on to say

"AI models confidently produces incorrect information. In market research, financial modeling ore legal analysis unchecked. AI output can lead to seriously flawed decisions with real consequences"

• Data Privacy, Legal Risks

It is possible that an AI system could ingest business sensitive data whether financial data, client info, blueprints, etc. AI could inadvertently expose confidential information creating potential legal issues. Right now, we are seeing that a lot of companies are just granting AI the "keys to the kingdom", where AI has access to legal files, HR records, Social security numbers, home addresses of employees. This is a really big deal.

• Too much reliance on AI without properly understanding what the AI is doing can cause massive upstream issues if there is an outage, tool changes, errors that can cripple operations if you don't understand how data flows within the application.

Overall, AI can be a risk. Whether discussing potential legal issues of regulatory non-compliance, accountability gaps for harmful, & discriminatory recommendations, introduction to bias thinking, or intellectual property exposure & data privacy violations

Overall, AI poses various risks that organizations must manage, whether they are navigating legal non-compliance, accountability gaps for harmful & discriminatory recommendations, inherent bias, or threats to intellectual property and data privacy. We would like to additionally say that AI can be great. It really can help streamline processes and do a lot of good for companies as long as proper checks and balances are in place. If you have concerns about your new business venture, or maybe you have a company diving into what AI can do for you but are concerned about the cybersecurity and business ramifications, let us know, we are happy to assist however we can.