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
March 17, 2025
How Modern Businesses Use IT Services
IT should be making your business work smarter, not harder. That’s what we want to discuss today: how IT impacts your business priorities, such as productivity, cybersecurity, and accessibility. Are you making the best choices possible, or are the options you’re selecting hindering your company’s operations?
March 14, 2025
Technology Drives Inventory Management
It’s always good to know what kind of technological assets your business has at any given time, but some business owners don’t keep a detailed inventory. If you don’t know what you have, how will you know what you need? Let’s discuss some of the ways you can manage your IT inventory or make your current practices more effective.
March 12, 2025
Microsoft Windows for Beginners: The Start Menu
Last month, we wrote about how Windows is not the only operating system out there and that new users may be coming to the OS for the first time. We want to continue this discussion by sharing how to navigate the many features of Windows 11, including one of the more useful ones: the Start menu. You’ll find the other articles in this series by checking the “Learning Windows” tag here on our blog.

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