AI can answer almost any question in seconds. But when it comes to protecting your business, getting an answer isn’t the same as getting good advice.
I’ll admit something right up front.
I use artificial intelligence. A lot, actually.
I use it to organize ideas, research topics, brainstorm, and handle things that used to take me a whole lot longer. It’s an incredible tool, and I think business owners who aren’t at least learning how to use it are missing out.
But there’s something about AI that concerns me, especially when I see business owners relying on it for important financial, legal, and insurance decisions.
We’re starting to confuse having access to information with having access to professional advice.
And those are two very different things.
AI can explain insurance coverage. It can help you understand a contract. It can walk you through accounting concepts and answer questions about business expenses.
Sometimes, it does a pretty impressive job.
But here’s the problem.
It can also give you an answer that sounds incredibly convincing, makes perfect sense, and is completely wrong for your particular situation.
That’s where things get expensive.
The Problem Isn’t Always That AI Gives You the Wrong Answer
Think about the last time you asked ChatGPT a question.
You probably received a response within seconds. It was organized, detailed, and sounded like it came from someone who knew exactly what they were talking about.
Maybe you asked something like:
- Does my business insurance cover subcontractors?
- Can I deduct the cost of a new work truck?
- Do I really need an attorney to review this contract?
- Am I required to carry workers’ compensation insurance in Texas?
You get an answer, read through it, and think, “Well, that settles it.”
Except maybe it doesn’t.
What if AI hasn’t reviewed your actual insurance policy?
What if it doesn’t know how your business is structured?
What if there’s a provision buried in your contract that changes everything?
What if the answer depends on something that happened in your business six months ago?
AI can only work with the information it has available. And if you don’t know which details matter, there’s a good chance you didn’t include them in your question.
That’s what makes relying on AI for professional advice so risky.
Sometimes the problem isn’t the answer. It’s that you didn’t know what questions needed to be asked in the first place.
An experienced professional recognizes those missing pieces because they’ve dealt with similar situations before.
And that experience matters.
Information and Professional Advice Are Not the Same Thing
Let’s use insurance as an example.
If you ask AI, “What’s the difference between general liability insurance and professional liability insurance?” you’ll probably get a pretty useful explanation.
General liability typically addresses certain claims involving bodily injury, property damage, and other covered exposures. Professional liability generally addresses certain claims arising from mistakes or failures in professional services.
That’s helpful information.
Now imagine you’re a contractor who just signed an agreement with a general contractor.
You ask AI whether your insurance meets the requirements of that contract.
That’s an entirely different conversation.
Someone needs to review the actual contract, your insurance policies, and any endorsements that might change your coverage.
They need to understand what kind of work you’re performing, whether you’re hiring subcontractors, and what obligations you’ve agreed to take on.
Sometimes the answer is yes.
Sometimes it’s no.
And sometimes it’s, “You might have the coverage they’re asking for, but there’s something else in this agreement we need to talk about.”
That’s the difference between explaining an insurance concept and providing insurance advice.
And the same thing happens with bookkeeping, accounting, legal services, and just about every other profession where the details matter.
Why AI Can’t Replace Your Bookkeeper or CPA
Let’s say you own a plumbing company.
Business has been good, and you decide to purchase a new $65,000 work truck.
You ask AI, “Can I write off my new truck as a business expense?”
Within seconds, you get an explanation about business deductions, depreciation, and potentially some tax strategies.
Sounds good, right?
But your accountant might have a few more questions.
How did you purchase the truck? Is it titled personally or through the business? How much will it be used for business versus personal driving? Did you trade in another vehicle? How is your business structured?
And what have you already done from a tax-planning standpoint this year?
Those answers could significantly change the guidance you receive.
Your CPA isn’t simply looking at whether a truck can qualify as a business expense. They’re looking at how that purchase fits into your overall financial situation.
A good bookkeeper does something similar throughout the year.
They notice when expenses start climbing. They recognize unusual transactions. They know when something doesn’t look right because they’ve been watching your business operate month after month.
AI can help explain accounting terminology or organize financial information, but it doesn’t automatically understand your financial history or recognize everything that needs attention.
That’s why ongoing relationships with experienced financial professionals are valuable.
You’re not just paying someone to categorize transactions or prepare a tax return.
You’re paying for someone who understands the bigger picture.
Why AI Shouldn’t Be Your Business Attorney
Here’s another example.
You’re about to sign a contract with a new customer, vendor, or general contractor.
You notice a section discussing indemnification.
You have no idea what that means, so you copy the language into ChatGPT and ask it to explain.
That’s actually a pretty useful way to use AI.
It can help translate complicated language into something you can understand before speaking with your attorney.
But there’s a big difference between asking, “What does this provision mean?” and asking, “Should I agree to this provision?”
Your attorney may identify obligations you didn’t realize you were accepting.
Maybe the contract requires you to assume responsibility for certain losses caused by someone else.
Maybe there’s a dispute-resolution provision that creates problems.
Maybe there are payment terms, deadlines, or other conditions that could expose your business to unnecessary risk.
And sometimes the biggest issue isn’t the provision you asked about.
It’s something else in the contract you didn’t even notice.
That’s the value of having an experienced attorney review the entire situation instead of relying on an isolated explanation from AI.
The same principle applies to employment agreements, leases, partnership arrangements, and other legal documents that can affect your business for years.
AI can help you understand what you’re reading.
Your attorney can help you understand what you’re agreeing to.
Those aren’t necessarily the same thing.
Insurance Is Where I See This Problem Firsthand
As an independent insurance agent, I deal with this regularly.
Someone reads something online, watches a video, or asks AI a question about insurance coverage.
Then they call our office because the answer they received doesn’t quite match what we’re telling them.
One of my favorite examples is the old saying:
“Insurance follows the car, not the driver.”
You’ve probably heard that before.
And as a general concept, there’s some truth to it.
But someone hears that and assumes anybody can drive their vehicle and automatically be covered.
Not necessarily.
We need to know who the driver is, whether they live in the household, whether they’re listed or excluded from the policy, how they’re using the vehicle, and what the actual insurance contract says.
Those details can make a difference.
Commercial insurance can be even more complicated.
Imagine a roofing contractor asking AI whether their general liability insurance covers work performed by subcontractors.
AI might provide a reasonable explanation of how general liability insurance generally works.
But what if that contractor’s policy contains an exclusion involving subcontracted work?
What if the policy requires certain agreements or insurance documentation from subcontractors?
What if the contractor is performing work outside the operations contemplated by the insurance company?
Now the answer becomes much more complicated.
And those are the kinds of things an experienced insurance professional should be looking for when reviewing a business insurance program.
There’s something I tell customers all the time:
Your insurance policy determines your coverage. Not a certificate of insurance, not something you read online, and not what ChatGPT told you at 11:30 at night.
You’re Not Just Paying a Professional for Answers
I think this is where business owners sometimes misunderstand the value of professional services.
They assume they’re paying their accountant to prepare taxes.
Their bookkeeper to reconcile accounts.
Their attorney to prepare contracts.
Their insurance agent to find coverage.
And yes, those are services these professionals provide.
But if that’s all you’re getting from the relationship, you’re probably missing out on a lot of its value.
A good professional doesn’t just answer the question you ask. They recognize the questions you should have asked.
Let’s say you’ve worked with the same accountant for five years.
They know how your business started. They know you’ve hired employees, purchased equipment, opened another location, and maybe even started a second company.
When you call with a question, they already understand a lot of the background.
They aren’t starting from scratch.
The same should be true of your insurance agent.
If I’ve worked with a contractor for several years, I should have a pretty good understanding of their operations.
I should know what kind of work they perform, what changes they’ve made, and what challenges we’ve encountered with insurance companies in the past.
If they tell me they’re getting ready to take on a large commercial project, I might recognize an insurance issue they haven’t considered.
Not because I’m smarter than AI.
Because I understand their business and have experience working through similar situations.
That ongoing relationship creates context.
And context can completely change the advice someone receives.
When Something Goes Wrong, Who Are You Going to Call?
Here’s another thing worth thinking about.
What happens when the answer you relied on turns out to be wrong?
Let’s say you followed AI-generated guidance about a contract and ended up in a dispute.
Or you misunderstood a tax deduction and received a notice from the IRS.
Or you assumed your insurance covered something, only to discover a problem after filing a claim.
Who are you calling?
AI can help you research the issue, but it isn’t going to personally represent you in a contract dispute.
It isn’t going to take responsibility for reconciling your books.
It isn’t going to call the insurance underwriter to work through a coverage question.
And it isn’t going to sit down with you and help navigate the consequences of a business decision.
That’s where having the right professional relationship becomes important.
Now, let’s be fair. Hiring a professional doesn’t guarantee that every answer will be correct or that every problem will have a favorable outcome.
Professionals make mistakes, too.
But qualified professionals have responsibilities to their clients, established standards they are expected to follow, and processes for addressing problems.
AI-generated answers don’t come with that same professional relationship or accountability.
And when you’re making decisions that could affect your livelihood, that difference matters.
So Should Business Owners Stop Using AI?
Not even close.
I actually think business owners should be learning how to use AI more effectively.
It’s an incredibly powerful tool when used for the right things.
The mistake is treating it as a replacement for professional judgment rather than a resource that helps you make better decisions.
For example, instead of asking ChatGPT:
“Does my business insurance cover this?”
Try asking:
“What questions should I ask my insurance agent to determine whether this situation might be covered?”
Instead of asking:
“Should I sign this contract?”
Try:
“What potential issues should I discuss with my attorney before signing this agreement?”
And instead of asking:
“What’s the best way to deduct this business expense?”
Try:
“What information should I gather before discussing this purchase with my CPA?”
See the difference?
Now you’re using AI to prepare for a more productive conversation with your professional advisor.
You’re learning enough to ask better questions without assuming you already have all the answers.
That’s where I believe AI can provide tremendous value.
One other thing worth mentioning: be careful about what information you upload into AI tools. Insurance policies, contracts, financial statements, and customer records can contain sensitive information. Make sure you understand the privacy and data-handling practices of whatever tool you’re using before sharing confidential documents.
Professionals Need to Embrace AI, Too
There’s another side to this conversation, and I think it’s just as important.
If you’re an insurance agent, attorney, accountant, bookkeeper, or other professional service provider, you can’t pretend AI doesn’t exist.
Your customers are using it.
Your competitors are using it.
And the technology is only going to become more capable.
I believe professionals who learn to use AI responsibly will have an advantage over those who refuse to adapt.
Think about how much time professionals spend on repetitive tasks.
Researching information. Organizing documents. Drafting communications. Reviewing data. Handling administrative work.
If AI can help reduce some of that workload, imagine what we could do with the time we get back.
We could spend more time actually talking to customers.
More time understanding their businesses.
More time identifying problems before they become expensive.
More time doing the things that made our customers hire us in the first place.
Of course, professionals still need to verify AI-generated work, protect client information, and exercise their own judgment.
But the goal shouldn’t be to compete with AI over who can produce an answer faster.
The goal should be to use technology to deliver better service and better advice.
That’s how I see the future of professional services.
The Best Approach? Use AI and an Experienced Professional
I don’t believe business owners need to choose between artificial intelligence and professional advice.
I think they should use both.
Use AI to educate yourself, research unfamiliar topics, organize information, and prepare better questions.
But when a decision depends on your actual financial situation, insurance policy, legal obligations, or the unique circumstances of your business, involve someone qualified to evaluate those details.
Because the most dangerous answer isn’t always the one that’s obviously wrong.
Sometimes it’s the answer that’s technically correct in general but completely wrong for you.
And that’s a distinction that could save your business a lot of money and frustration.
At Leal Insurance Services, we believe our job is about more than selling insurance policies.
It’s about understanding our customers, helping them recognize potential exposures, explaining their insurance options, and providing guidance as their
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