Welcome to the First Column IT Tech Blog

HomeBlog
The 3 Legal Risks That Could Tank Your Business

The 3 Legal Risks That Could Tank Your Business

March 13, 2026

It sounds like the perfect get-out-of-jail-free card: “I’m so sorry for that error, the AI wrote it!” Unfortunately, that excuse works about as well today as the dog ate my homework in third grade. While AI is an incredible tool, you are still the one holding the leash. If your AI makes a mess, you’re the one who has to clean it up.

Let’s break down why AI makes mistakes and how those slips can turn into real-world headaches for your business.

Why Does AI Make Mistakes?

To understand the why, you have to understand what an AI actually is. Most people think of it as a super-powered encyclopedia, but it’s actually more like autocomplete on steroids.

When you ask an AI a question, it isn't thinking or fact-checking. Instead, it is playing a game of probability. It has "read" trillions of sentences from the internet and books, and it uses math to guess which word should come next.

  • The math problem - If you type "My favorite food is...", the AI knows that "pizza" is a statistically likely next word, while "cardboard" is not.
  • The hallucination - Sometimes, the math points the AI in the wrong direction. It might confidently state a fact that sounds perfectly natural but is completely made up. This is called a hallucination.

The AI is just solving a math equation; it doesn’t know (or care) if the answer is true. That’s your job.

3 Ways an AI Mistake Can Hurt Your Business

Because the AI is technically acting as your "representative," its mistakes are legally your mistakes. Here are the three biggest risks:

Defamation

Imagine your AI writes a blog post claiming a competitor uses illegal materials to make their products. The AI doesn't know it’s lying; it's just crunching numbers. However, you could be sued for libel for spreading those lies.

Bad Promises

Many companies use AI chatbots for customer service. If that bot gets "eager to please" and promises a customer a 90% discount or a lifetime warranty you don't actually offer, courts are increasingly ruling that you have to honor that promise.

Accidental Theft

Because AI predicts the most likely next word, it can sometimes accidentally spit out an existing book or article word-for-word. This can leave you inadvertently plagiarizing someone else's work and facing copyright infringement charges.

We’ll Help You Use AI Safely

AI isn't the bad guy—it’s just a tool that needs a human supervisor. At First Column IT, we help you navigate these new waters. We ensure your technology is optimized and secure, so you can enjoy the speed of AI without the legal or security nightmares.

Ready to use AI the right way? Give us a call at (571) 470-5594 to get started.

‍

Previous Post
June 7, 2023
How to Ensure Your Business Remains HIPAA-Compliant
In 1996, the United States Congress passed the Health Insurance Portability and Accountability Act, better known as HIPAA, in an attempt to streamline the healthcare system while also maintaining individual privacy of individuals’ health records. This regulation allowed people to more effectively and securely transfer their health coverage without the risk of fraud or abuse of health records. As you can imagine, your technology plays a significant role in making this happen.
June 5, 2023
Cloud Regulation Might Be On the Horizon
Many companies, individuals, and organizations have sought to get the most value out of cloud computing, making it an industry that also requires a certain level of regulation. With its increasing integration into our daily lives, it’s no small wonder that there is a greater effort to control certain aspects of it. Here is what you can expect from cloud regulation in the near future.
June 2, 2023
How to Tell Your Hard Drive is About to Fail
Digital storage is one part of computing that has seen astronomical growth over the past several decades, and with the solid state drive (SSD) more affordable than ever, you have to wonder how well your old hard disk drive (HDD) is holding up. Despite the cost difference between the two, the HDD is a viable option, albeit a mechanical one that is prone to breakdown over time.

Have a project in mind?

Start with our free consultation. We will provide a detailed proposal and firm quote based on your specific IT support needs. All at a predictable monthly cost per seat.
Free Consultation - Sign Up Here