Not all pieces of small business AI are created equal. Some are packaged to operate out-of-the-box, while others require undergoing a substantial training process before they work as intended. Some are calibrated to handle every conceivable business operation, while others arrive with a narrower focus on one or two critical tasks. Not to mention the fact that AI offerings are changing all the time.
Small business owners may think they have a handle on the technology, but even seasoned AI users could benefit from a refresher given the rapid pace of AI development. And new users should know what to look for when evaluating AI deployments or risk wasting time and resources managing incorrect expectations.
Here are some important questions for small business owners to ask about AI, the answers to which can help select a new piece of AI or maximize the use of one they’ve already implemented:
How is the LLM trained?
The year 2025 has exposed AI’s potential to perform copyright infringement without users knowing. For example, last summer, Meta and Anthropic were taken to court by book authors who alleged that the companies used published, copyrighted material to train their Large Language Models (LLMs), aka the massive data repository referenced by the AI, without permission or remuneration. These companies won their respective lawsuits due to protections around “fair use,” and the damage was done—proof that traditionally protected intellectual property was available to be data mined and LLMs were consuming it voraciously. In many of these cases, the winners were massive tech enterprises that likely employed an arsenal of lawyers for their defense.
Small businesses cannot afford to find themselves on the receiving end of a similar intellectual property dispute. Not only would it be a costly affair, but customers are wising up to what these slip-ups might mean for their own data and are quick to change vendors if need be.
Problems with LLMs usually begin during the training process. Some AI vendors let LLMs roam freely throughout the internet, picking up whatever stray data happens to come their way and paving the way for potential intellectual property disputes. Others feed their LLMs synthetic data, customer data with personal identifiable information removed, and other pieces of information that exist within guardrails.
Small businesses interested in AI must find a vendor who engages in the latter—and who will provide the utmost transparency as training methods evolve or other issues arise.
How does the software maintain privacy and security?
A single data breach can spell the end of a small business’s lifespan, and the chances of this happening will only increase as the technology employed by bad actors continues to evolve. At the same time, keeping data private can be quite costly and time-intensive.
That’s not to say that privacy and security needs to be something a small business thinks about every single moment of every day. For this, it’s best for SMBs to defer to the experts. The right tech vendor will handle these efforts and keep a small business insulated from issues.
To determine if a vendor is the best fit, small businesses should ask about the vendor’s tech stack. Many will say they employ Amazon Web Services (AWS) or other third-party services, which may sound good at first. After all, these companies specialize in running tech stacks, so they must be the best choice, right? The problem with AWS specifically, which can be generalized to similar vendors, is that when too many companies hinge themselves on a single entity, when problems arise, all of those companies experience them. Look no further than the recent AWS outages for proof.
Vendors that emphasize privacy and security will likely run their software from their own tech stack. This allows them to maintain 360-degree visibility into the system and deploy fixes right away whenever suspicious activity is raised. They can also make their processes more efficient, then passing the savings onto the customers or padding the company’s R&D budget to produce better technology. Vendors worthy of a small business are those who take matters into their own hands.
How do the AI agents work?
Implementing generative AI is far more complicated than turning on a faucet. Good AI requires that small businesses remain mindful of how the technology will integrate into its existing operations and workflow. After all, the worst-case scenario involves purchasing a flashy new AI product only for it to arrive far too complicated to be practical.
The most effective AI agents—specific processes and tasks accomplished by AI—are ones that work in the background. Often, users won’t even know AI was involved because the technology simply works, which can help with adoption efforts, as well. When small businesses are seeking to incorporate AI, they must ask tech vendors about how much set-up is required before AI will be working at full capacity, and how much of it will integrate with the software a company is currently running.
To simplify these efforts tremendously, small businesses can search for a vendor whose AI arrives already embedded in the software. This eliminates the need for clunky third-party integration efforts and ensures that data will be kept within a closed system, where it will be less likely to leak and stronger protective efforts can be incorporated. In addition, AI woven into the fabric of software is easier to keep up-to-date because software updates can be accomplished effortlessly. The less work required by the small business, and the more confident that business can feel about its technology vendor, the better.
In conclusion
Small business AI adoption has been stymied by a lack of data readiness, difficulty in integrating with legacy systems, and unnecessarily high costs passed down to the consumer. When a vendor builds its software on a single, internally-developed tech stack, incorporates agents into daily business operations, and subverts the use of third-party tools, customers can make great use of the AI while keeping their fears at bay.
Small businesses may not be able to predict the future perfectly, but by asking the right questions of a potential AI vendor, they can at least ensure that future is in good hands.
Image via Envanto