New Rules Could Make AI More Costly for Small Business

There's a growing debate about how secure AI tools really need to be, especially for small businesses. Some courts are now starting to ask for what they call 'enterprise-grade' security when AI is used in legal work. This sounds good on the surface – who doesn't want more security?

The catch is that 'enterprise-grade' often means very expensive, complex systems designed for huge companies. For a sole trader or a small family business, investing in these high-end security measures for everyday AI tools, like those that help write emails or manage schedules, might simply be too much. It could price them out of using AI altogether.

The real question is whether this level of security is truly necessary for the types of tasks most small businesses use AI for. Many common AI tools already have good, built-in security features that are perfectly adequate for general use. Forcing a small business to buy a Rolls-Royce when a reliable Holden will do the job perfectly well might mean they just don't buy a car at all.

This isn't just about lawyers; it sets a precedent. If courts start demanding this, other industries might follow suit. It could slow down the adoption of AI, which has huge potential to help Australian small businesses save time and money. We need to find a sensible middle ground that protects information without stifling innovation and making useful tech inaccessible.