AI in business: A powerful tool, but not a substitute for expertise

We know we live in an era where AI is reshaping how businesses operate, from customer service to legal drafting, from automation to analytics

AI in business - A powerful tool, but not a substitute for expertise

As award-winning technology lawyers, we embrace innovation. We understand AI. We use it ourselves. But our message to founders and growing businesses is clear: AI is a tool, not a crutch or a substitute. Used correctly, it can support speed, efficiency, and ideation. Used blindly or without oversight, it can lead to expensive litigation, reputational damage, and irreversible strategic missteps. Love or hate AI, it is here to stay, but how you choose to use it will mean everything to you and your business’s future.

In short: AI should be part of your toolbox, but not the only appliance. Also, would you let your apprentice do the job? Without training or supervision, that is what you are doing – which could make a quick job into a costly fix.

We’ve seen it go wrong

As litigation lawyers and legal advisers, we are often called in after things have gone wrong – after the AI-drafted contract is signed, after the dispute arises, after the regulatory breach is discovered.

  • Self-drafted contracts pulling in the wrong jurisdiction clause (e.g. New York law governing a UK-based commercial arrangement), leading to unforeseen legal fees to negotiate or litigate the mess.
  • AI-generated shareholder agreements that fail to reflect the founders’ actual business strategy, resulting in blocked exits and share dilution.
  • Parties entering sensitive client or employee data into public AI tools, only to later face data breach claims. We’ve issued proceedings on behalf of victims in these very scenarios.
  • Solicitors and barristers being sanctioned or struck off after using AI to draft legal submissions, unaware that the citations it generated were fictitious. Clients suffer the consequences both financially and reputationally.

These sadly aren’t one-off horror stories. They’re becoming regular features in our work, social media, and news stories – and all could have been avoided with expert legal advice and human oversight.

The problem isn’t AI – it’s an operator error

Let’s be clear: AI is a fantastic tool when operated by those who understand its capabilities and limitations. We use AI ourselves, particularly in research, brainstorming, and data organisation. It can be a time-saver and idea generator. But we never rely on it blindly, we are over-cautious how we use it and what we input, and we triple-check the output.

The challenge is that many users aren’t trained to use AI critically. They assume the output is accurate, without understanding where the data is pulled from, what assumptions are being made, or what legal nuances are missing. They don’t quality-assure what is being used, how it is being processed, and checking the outcome – which any trainee’s work would be. So what’s the difference?

  • AI doesn’t understand your business model.
  • AI doesn’t know your investors’ risk appetite.
  • AI won’t spot a commercial blind spot in your strategy or understand a personal family goal.
  • AI doesn’t show empathy when things go wrong and cannot pick up the phone (yet).

It’s not that AI is dangerous, it’s that people are not yet trained or cautious enough to use it wisely.

Hybrid AI use – just like hybrid working

The future is hybrid, in our opinion, and not just in working from home. The same principle applies to technology.

Remote work offers flexibility, saves commuting time, and gives people breathing room. But face-to-face time is still crucial for collaboration, team culture, and mentoring.

  • AI should be used the same way: blended, not binary.
  • Use it for efficiency, not for decision-making.
  • Use it to support, not to replace.
  • Keep human judgment in the loop.

We believe the best legal advice comes from a combination of smart tools and experienced people.

Our approach: Technology-driven, people-led

We are technology law specialists and award-winning advisers in the tech sector. We help scaleups, SaaS platforms, AI developers, fintechs, and innovators navigate legal and commercial growth. We understand the tools you use because we use them too. We are not scared of AI like so many would lead you to believe, as it will not replace lawyers. It’s a tool to us – we use it with caution as an aid, but we know our personal experienced advice, with this, works in tandem not in opposition.

We will always choose quality and risk mitigation over shortcuts. Advisors can benefit from AI and costs can be reduced without losing the human oversight.

  • Bespoke drafting: We don’t rely on templates. We get to know your business, goals, and risk appetite, and we tailor contracts that fit you. AI can help to administratively feed into this, though, to reduce time.
  • Human oversight: Every document, every clause, every risk is reviewed and considered by experienced legal professionals who understand both tech and law. This is not something we believe should be compromised.
  • Education, not just execution: We advise clients on how to use AI tools safely, help draft internal AI-use policies, and educate teams on what data is too sensitive to input. Use it sensibly and monitor output, and your business will benefit without the risks.
  • Empathy and support: When things go wrong, a chatbot can’t read the room. We’ll pick up the phone or meet you face-to-face, offering clarity, kindness, and practical solutions. AI will one day soon call you and talk – as we are seeing this already – but clarity on human nature, family strains, and risks… an algorithm can’t give the same comfort and one-to-one. So customer service is still essential.
  • Litigation expertise: If you’re facing a dispute due to AI misuse, we’re not just theorists. We’re courtroom-ready and have already represented clients in cases involving AI-generated errors, data breaches, and contractual confusion. Make sure your staff understands the policy; make sure you react if your data has been misused on AI – and if you’re unsure about how you’re operating it – check!

We are all embracing AI as part of our growth, but trusted experts make sure you grow safely. Customer service is still much needed. Human touch still goes a very long way.

ABOUT THE AUTHOR
Karen Holden
Karen Holden
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