The AI hype is inescapable, and now it’s piqued the interest of budding entrepreneurs, especially because of its expanding functionalities to help create a business plan.
But, being honest, there’s still lots of uncertainty that surrounds a technology that is just entering the mainstream. A global study in 2023 on the shifting public perceptions of AI discovered that three-in-five (61%) people are wary about trusting AI systems, while 67% report low to moderate acceptance of AI.
Some of the common questions around AI are focused on its security and return on investment. It also appears to be very complex on the surface, which is understandably scaring people away. But many of these claims fail to hold up under scrutiny. Platforms driven by this ever-evolving technology can actually offer significant value. Here are the top five myths surrounding the use of AI in business planning and some best practice tips on how best to use it.
1. AI is too complex to use
A really pervasive myth is that AI is too complex for the average entrepreneur to use effectively. Many people believe that if they don’t have a technology background, they just won’t be able to get their head around it. But this perception is outdated. Modern AI-driven platforms are designed with user-friendliness in mind. The planning process is simple, efficient and effective. Users can tap into platforms where they simply answer a series of questions and the AI does the rest. It’s really that simple.
Even seemingly complex tasks, such as financial forecasting, market analysis and devising an exit strategy can be streamlined by the technology. Even complex balance sheets aren’t beyond its capabilities. Rather than getting bogged down in the details and wasting precious time, entrepreneurs should make use of an accessible platform to fully realise their winning ideas for business success.
2. AI platforms will steal my original business idea
Entrepreneurs of course want to prevent their lucrative ideas from falling into the hands of copycat rivals. You never know who might be out there trying to take credit for something that isn’t theirs! And this fear can be so significant that users avoid any AI platform so their original idea can’t fall into the wrong hands. But again, it’s an unfounded fear. The best AI-driven platforms are equipped with industry-standard encryption and advanced firewall systems, designed from the ground up to protect sensitive data.
Security protocols are regularly updated to combat new threats and ensure that data remains protected from any unauthorised tampering. Plus, best-in-breed systems are serious about confidentiality, so only the user can access their business plans and data. Personal data is not shared with any third parties unless the user explicitly consents to it. With these protections in place, entrepreneurs can embrace these platforms with confidence, without any lingering fear that their truly unique idea might be intercepted by an opportunistic individual.
3. AI doesn’t provide ROI
Another common myth is that AI doesn’t offer a return on investment (ROI). Some believe that they’ll spend a huge amount on a platform that fails to prove its value. But this really couldn’t be further from the truth. In reality, many entrepreneurs aren’t aware of what a modern platform can do. Features include automated financial projections, risk mitigation and strategy suggestions to increase business growth and success, and that’s just scratching the surface! There are numerous capabilities that can come together in one solution to create a robust business plan that doesn’t falter under scrutiny.
Market-leading platforms also provide various visual elements such as graphs, charts and infographics to convey complex data in a clear and impactful way. Investors often don’t want to scour through long blocks of text when evaluating an idea, so they’re a great feature for entrepreneurs to tap into. For example, users could present a graph detailing the promotional channels they wish to use, such as email and social media marketing, and how often they plan to use them.
Also, if users invest in the right platform, they immediately access benefits such as saved time, reduced errors and improved strategic outcomes. These all add up to an immediate ROI from the solution.
4. AI will replace human creativity
A long-standing myth has been the worry that AI will storm into different industries and kick humans out of their office chairs and workstations, leaving them out of a job. Similarly, there’s a misconception that AI might stifle creativity by imposing rigid, formulaic solutions, and what users are left with are cookie-cutter business plans. But this myth ignores the complementary role AI can play in the creative process. AI serves to enhance human creativity, rather than replace it.
AI can handle repetitive tasks, freeing up the time for entrepreneurs to focus on the more innovative aspects of their business. It can also scour through significant datasets to provide insights. It’s time for users to let the technology handle the grunt work and instead focus on refining the detail of their original and effective business plans with confidence.
5. AI is only for large corporations
AI technology is just a luxury that only the big players can afford, right? That actually couldn’t be further from the truth. Today’s AI platforms are designed to be both affordable and flexible. These platforms can be scaled according to the size and needs of the business, making it possible for start-ups to take advantage without breaking the bank.
Entrepreneurs should look for platforms that don’t tie them down to expensive long contracts. Instead, they can benefit from complete flexibility, with a range of options when it comes to payment methods. This way, startups can gain a competitive edge, streamline operations and make informed decisions – capabilities once only afforded to the big established firms.
Separating the fact from fiction
As AI keeps advancing, it’s important for entrepreneurs to cut through the noise and get to the truth. A lot of the myths about AI in business planning come from old-school thinking and not really knowing what today’s platforms can do. The reality? AI is both accessible and a game-changer for businesses of all sizes. By embracing AI, entrepreneurs can sharpen their planning, safeguard their ideas, and see a solid return on investment, all without losing that creative spark.
Alex Clansey is the co-founder and CEO of business planning platform Venture Planner. In partnership with his wife, Nicola McKenzie, the duo has launched a total of six businesses in just over a decade under the Dunham McCarthy group, which practices a holistic approach to financial advice and estate planning. Together, its team of specialists and associates provide advice across a range of services, from estate planning to life insurance.