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FAQ

What are the rules about using AI in my business?

Updated Oct 2026 · 3 min read
Straight answer: there's no single US law that governs AI for small business. But the privacy, confidentiality, and industry rules you already follow still apply to AI — and state AI laws are arriving fast enough that you want your basics in order now.

If a court, client, or regulator would care about something you do manually, they care about it when AI does it. Client confidentiality clauses don't care that the contract was pasted into a chatbot instead of emailed to a competitor. PII rules like GDPR and CCPA apply the same way, and healthcare businesses carry HIPAA obligations no chatbot plan exempts you from.

The patchwork is the new problem

Six in ten small businesses now worry about a state-by-state patchwork of AI and privacy laws — different rules for AI in hiring, in decisions about people, in data handling, depending on where you operate. Some states already require disclosure or human review when AI influences decisions that affect people. Congress keeps debating a federal standard; don't wait for it.

The 15-minute compliance kit

Item 1
A tool list

Every AI tool your team uses, including the AI features already inside software you pay for. Update it quarterly.

Item 2
A never-list

What data never goes into a prompt: client identifiers, contracts, payment details, employee records, credentials. One page, concrete examples.

Item 3
A human check

A person reviews anything AI-produced before it reaches a customer or drives a decision about a person. This is the part regulators keep circling.

Key point — One named person owns this, not a committee. In a small business it's usually the owner or the operations lead. If nobody owns it, nobody's doing it.

I'm David. I build AI that keeps your data yours.

David Nowak

Twenty years building software for businesses like yours — cloud tools when they fit, your own machines when the data demands it. Four ways to work together: a session, a scoped project, a standing second opinion, or just an email.

Work with David

"Most companies are selling you fear and complexity. He cuts through the bullshit and just fixes things. That's what partnership looks like."
Jim · Owner, media production company · more testimonials