Episode 98

Where Using AI is Risky in Your Small Business

Published on: 10th May, 2026

Hello and welcome to this weeks episode of The Australian Small Business Show!

In this episode we dive into the rapid rise of AI and why, despite all the benefits, there are some real risks small business owners need to be aware of.

We explore how easy it is to get caught up in the time saving and efficiency gains, and why that can sometimes lead to using AI in areas where it simply should not be trusted. From hallucinations to confidently incorrect answers, we unpack why AI can sound convincing even when it is completely wrong.

We also discuss the high risk areas where using AI can create serious consequences for your business. This includes legal advice, financial reporting, HR decisions and contracts, where getting it wrong is not just inconvenient but potentially very costly.

We share real examples and scenarios where relying on AI could land you in trouble, and why the responsibility always sits with you as the business owner, not the technology.

Another key focus in this episode is the importance of critical thinking, human oversight and knowing when to seek expert advice. We talk about the hidden risks around data security, AI agents and team usage, and why having a clear AI policy in your business is becoming essential. We also reflect on when using AI can actually cost you more time rather than save it, especially when you factor in reviewing and correcting its output.

Finally, we wrap up with practical guidance on how to approach AI in your business. We are not saying do not use it, because there are incredible benefits, but we are encouraging you to be intentional, cautious and clear on where it fits. If the stakes are high, it is simply not worth the risk.

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Disclaimer: The information shared on The Australian Small Business Show is general in nature and does not constitute professional advice, legal or otherwise. We recommend consulting with your advisors on your specific circumstances.

Intro Music Credit: Music from #Uppbeat (free for Creators!):

https://uppbeat.io/t/all-good-folks/funky-junk

License code: 5IA1B1XF5NGPXI2T

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About the Podcast

The Australian Small Business Show
The Australian Small Business Show has been created by small business owners, for small business owners.

Your hosts Matt Heighway and Kristy-Lee Billett, who have both been running businesses for over 15 years, will bring our first hand experiences to offer insights, advice and inspiration to help you build a successful small business.

Each week we’ll discuss one specific strategy, topic, resource or tip that’s relevant for every small business, and we’ll be inviting along some amazing guests and friends in business to share their expertise with you.

Whether you're starting out, scaling up or a seasoned small business owner, this Australian Small Business Show is the show for you.

About your hosts

Kristy-Lee Billett

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Kristy is a nationally recognised HR expert, passionate small business advocate, podcast host, mum, wife, beach lover and runner.

She has spent more than 20 years now working in the field of Human Resources, People Management and Recruitment.

For the last 10 years she has dedicated herself to exclusively supporting small to medium sized businesses, those who employ less than 100 staff with all aspects of their HR, recruitment, people management and resource structures.

She founded her first business in 2006, and today she continues to direct this business, which is now known as People Powered Business.

Today She loves working with businesses inside our People Powered HR community to help them gain the knowledge, tools and resources to handle absolutely anything when it comes to their teams, with complete confidence.

Matt Heighway

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Matt is a CPA who has been working with business owners in multiple capacities for well over two decades. After commencing his career as an Accountant and Business Adviser, his own national start-up won numerous business awards and was featured in BRW fast 100. Since the business sold, he has been working with small-medium business owners helping them with business growth strategies and holistic business coaching.

Matt also is the Director of Lifetime SMSF, an accounting practice that specialises in Self-Managed Super Funds. Helping Australians manage their retirement nest eggs has been a lifelong project for Matt and he continues to get joy from helping.

Matt is a lifelong learner who loves to chat with other business owners. he is passionate about small business and always wants to see them win. He is at his best when things need turning around though, and gets his motivation helping small business owners come back from a set back.