AI for Startup Potential and Risks of AI for Entrepreneurs

A graphic illustration of a human brain image and electronic connections, to suggest the complex issues involved in ai for startup.AI For Startup: Artificial Intelligence is talked and written about a great deal, but many of us have little real understanding of what it is and even less, an appreciation of its risks or benefits. We may even think AI stands for Assistive, Assisted, or Augmented Intelligence, which indeed it may in certain cases. The North American market is clearly huge, since it’s estimated to be worth some $51 billion in 2025.

AI uses computer systems or algorithms that imitate intelligent human intelligence in tasks like learning, reasoning, problem-solving, perception, and analysis. If AI comes to dominate life in the future, it’s possible little will change, or things will greatly improve or worsen, be disastrous or sublime. In any event the subject probably should not be ignored by intending entrepreneurs.

For new entrepreneurs, AI could both save time and money on business planning and operations, and help to get a better appreciation of opportunities and challenges. It offers tools to analyze vast amounts of data, to identify patterns and predict trends very quickly. In addition, many tedious routine tasks can be automated—but don’t take robots for granted! For instance, just assuming that an AI package can do your bookkeeping and accounting for you and you can relax and get on with other tasks might be a mistake. Just because AI can do it should NOT mean leave to AI!

Before thinking about using a particular tool, find out what its design parameters were. Then check on the assumptions that that were used in creating the product. An October 2025 article by AP, cited “a cautionary tale for people who are learning to use AI tools at work. Many employers want to hire workers who can use the technology to help with tasks such as conducting research and drafting reports” having noted that “Judges around the world are dealing with a growing problem: legal briefs that were generated with the help of artificial intelligence and submitted with errors such as citations to cases that don’t exist, according to attorneys and court documents. Anyway, I heartily suggest that you take a look at A Guide to AI for Startups from Founders Network. It will help you to assess if it can help to before or after starting your new venture1.

Natural Intelligence

AI for startup is not a replacement for your own natural intelligence, of course, so maintain your entrepreneurial skepticism and don’t lose your techno-humanist compass, even though you know that AI is created by and for humans. AI has no ‘lived experience’, despite its massive datasets—so lean hard into your natural intelligence, intuition and sensitivity. Make sure to use common sense. Additionally it will help a founder to give some time (in an already crowded schedule) to what skills need honing to be sure of unique human values to use AI intentionally, rather than having nasty surprises when failing to appreciate the assumptions behind and the implications of Ai for the new venture. Technology is important, but humanity is vital.

Your own experience has already led you to know that the Live Chat function on a website, helps customer service only to a limited degree, or that a search engine’s AI response to your query will only provide part of the answer. Use your natural judgement. Use it, also when you react to AI-based facial recognition, either positively or negatively. Consider the differences and similarities between being refused entry following facial recognition, versus a notice saying “Shoes and shirt required for entry”.

Likewise, you will of course apply your natural intelligence when you look at resumés of job applicants. As reported by Forbes in early 2025, AI scams are being used to scam both job-seekers and businesses. Of course job-seekers will use any resource to help them find a new job, but given that an internet search will show five or more AI resumé generators, you’ll realize how easily employers can be fooled.

New Entrepreneurs’ Reactions to Use of AI

If AI for startup sparks your interest, you may to be a person who has one of four reactions to AI: ‘Gloom, Doom, Bloom, or Zoom. ‘Gloomers’ are those who are strongly concerned about the risks of AI and favor rigid control and regulation. ‘Doomers’ are those who fear the threats that AI poses. ‘Bloomers’ are those who favor intelligent AI risk management. ‘Zoomers’ are all gung-ho for AI’s rapid expansion, without restraints. This summary of possible reactions to AI are well described in Reid Hoffman and Greg Blato’s book2. The principles they use about AI are:

  • Beneficial outcomes for individuals and society;
  • Shared data become catalysts for individual and democratic empowerment;
  • Innovation and safety are not opposing forces, but rather synergistic ones;
  • Collective use of AI will have compounding effects.

You will naturally use your natural intelligence to consider the positive and negative consequences and the utility of using AI in your startup—both in general and in the case of any particular AI for startup application. Though I’m a late AI Bloomer, I think new entrepreneurs should take advantage of any help they can find. Just as a caution, I can recommend a visit to Exploding Topics, a site that helps companies find exploding trends before they take off. A useful article is entitled “The AI Trust Gap: 82% Are Skeptical, Yet Only 8% Always Check Sources”.

One thing I’ve learned about AI for startup concerns the vital role it increasingly plays in website design and search engine optimization (SEO). A very revealing source of information lies in a post by Olga Zarr, an SEO consultant: take a look. With SEO, as much as many other business and tech subjects, the concern is likely to be—will AI replace natural intelligence, or even jobs and people.

The realization leads me to recommend that since so much in business is now impacted by AI, it’s worth doing a search on “AI impact on whatever the subject of interest” for any AI application you’re considering.

Startup Behaviors and Policies to Help Consideration of AI

For example, if you’re committed to sustainability or the circular economy, you are probably concerned about energy and water consumption. AI, and particularly Generative AI3, are now consuming huge amounts of both.

New entrepreneurs have plenty enough to think about, let alone worrying about such implications of using AI for startup. But a useful approach may be simply to stop, breathe and reflect for a few moments on some of the potential issues.

7 Links on the Venture Founders Site Give You a Head Start

10 Sources of Advice on AI Tools for Startups

 Notes

  1. Or for a more general guide to get you thinking, look at Coursera’s What is Artificial Intelligence? Definition, Uses & Types. You might want to delve further by doing one of their AI courses, but don’t let it distract you from your intention to launch your new business. Coursera is a BCorp.
  2. Superintelligence: What Could Possibly Go Right with Our AI Future, by Reid Hoffman & Greg Blato (ISBN 97988933101081) is a great read for understanding the benefits and issues of Artificial Intelligence. Reid Hoffman is the entrepreneur and venture capitalist, who co-founded LinkedIn.
  3. Generative AI is a new type of AI that can create conversations, stories, images, videos. For more, see https://www.geeksforgeeks.org/artificial-intelligence/what-is-generative-ai/. Here’s something more specifically focused on Generative AI’s environmental impact: https://news.mit.edu/2025/explained-generative-ai-environmental-impact-0117
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