AI is rapidly transforming how businesses operate, promising greater efficiency, automation, and data-driven decision-making. And companies are loving it. Currently, around 40% of businesses are utilizing AI in some form in their business, with a prediction that in 3 years, 92% of all businesses plan to increase their AI and automation investments (Mckinsey & Company). From chatbots handling customer inquiries to AI-powered analytics improving forecasting, it seems companies of all sizes are seeing the benefits of automation.
One of the largest trends we mentioned a couple weeks back was the use of automation (not necessarily AI) to execute mundane tasks for businesses. This allows you to focus on the more time consuming tasks instead of the day-to-day little things. However, beneath the surface, AI and automation adoption comes with challenges (that just scratched an alliteration itch in my brain) that many businesses—especially small and medium-sized ones—may not be prepared for. Rising costs, cybersecurity risks, and infrastructure strain are just a few hurdles that decision-makers must consider.
4 Unknowns When Using AI in Your Business
The Burden of Compute
Every time an AI model processes a request—whether answering a question, generating an image, or analyzing data—it requires significant computing power. Unlike traditional software, AI runs complex calculations that demand high-performance infrastructure. This strains cloud resources and data centers, leading to potential slowdowns and increased costs.
For businesses relying on cloud-based services, this means dealing with fluctuating availability and performance. AI-heavy workloads require advanced resource planning, and as AI adoption grows, businesses need to consider whether their IT environment can keep up. Simply put, just because AI exists in the cloud doesn’t mean the resources supporting it are unlimited.
The Rising Cost of AI
Many businesses are currently using AI-powered tools for free—whether it’s chatbots, automated transcription, or AI-driven email assistants. But that’s likely to change. Running AI requires expensive hardware and energy, and companies providing these tools will eventually pass those costs on to customers.
For SMBs, this shift could mean unexpected budget increases. While AI can drive efficiency, decision-makers must weigh its long-term financial impact. Businesses should start evaluating which AI tools provide real ROI and budget accordingly for a future where AI services are no longer free or low-cost.
Cybersecurity Risks Won't Go Away
AI isn’t just a tool for businesses—it’s also being used by cybercriminals. Attackers are leveraging AI to automate phishing scams, crack passwords faster, and even create realistic deepfake content. As AI tools become more advanced, cybersecurity threats will become harder to detect and defend against.
Additionally, AI models themselves can introduce security risks. Some AI tools require access to sensitive business data to function, and if not properly secured, this information could be exposed. SMBs must prioritize AI security by implementing strong access controls, regularly monitoring AI applications, and ensuring compliance with data protection regulations.
Industry Specific Issues with Compliance
AI innovation is moving faster than government regulation, leaving businesses in a gray area when it comes to compliance. Unlike industries with established guidelines, AI adoption lacks a clear regulatory framework, creating potential legal and ethical risks.
For SMBs, this means staying proactive. Companies should develop internal AI policies that address data privacy, ethical use, and accountability before regulations are formally introduced. Partnering with IT providers who understand evolving AI best practices can help businesses stay ahead of potential compliance challenges.
So what Do You Do Now?
AI has the power to transform business operations, but it’s not without challenges. Decision-makers must look beyond AI’s promise and consider how increased computing demands, rising costs, cybersecurity threats, and a lack of regulations could impact their business.
By taking a strategic approach to AI adoption—that is, investing in the right infrastructure, planning for future costs, and prioritizing security—businesses in can harness AI’s benefits while mitigating risks. AI isn’t just the future, it’s here now, and the companies that prepare wisely will have the competitive edge.
Need help? Let us know. We can jump through the hoops together.
Emily Kirk
