For many small business owners, AI can feel like both an opportunity and a risk. It promises to save time and reduce repetitive work, but it also introduces new security challenges.
AI strategist and systems designer Michelle Williams says the safest way for small businesses to approach AI is to slow down and focus on foundations before tools.
Michelle, who has worked in the technology industry for 25 years, supports SMEs to get their “systems, data and ways of operating ready for AI”.
She says the biggest mistake business owners make is trying to adopt the new technology without first understanding what problem they are solving.
“Some businesses look at AI, and they’re just so overwhelmed — like, where do I start?” she says.
“So finding that one particular area of your business that maybe has the most pain… that’s where to start.”
Before introducing AI tools, Michelle stresses the importance of data hygiene. AI systems rely on structured, accurate information, and if business data is scattered across spreadsheets, inboxes and disconnected apps, automation can create more confusion, and more risk.
“AI needs good, clean, organised, safe, secure systems before AI can even be talked about,” she says.
“When we talk about data, we’re talking about everyday business information: customer records, supplier details, sales history, invoices and expenses. That information is incredibly valuable, but it also needs protecting, especially as more AI tools start touching it at once.”
The Byron Bay-based founder is seeing strong uptake of tools that reduce administrative tasks, such as meeting transcription services and voice-to-text tools.
But she warns that convenience can come at a cost if business owners don’t check their security and privacy settings.
“Security isn’t just about not leaking information,” she says.
“As more AI tools are introduced, there are simply more opportunities for mistakes or for bad actors to take advantage. That’s why basics like who has access, what’s shared, and which systems are connected really matter.”
Small businesses also need to stay up to date on rising threats, as AI supercharges scams and makes them harder than ever to detect.
The International AI Safety Report 2026 says AI has opened the floodgates to creating believable content that can be misused by cyber criminals, through tools that are “free or low-cost, require little technical expertise, and can be used anonymously”.
“The number of media-reported harmful incidents that involve AI-generated content has increased substantially since 2021,” the report says.
For instance, scammers are using cloned voices to pose as family members and persuade victims to transfer money.
AI systems can also discover software vulnerabilities and write malicious code to launch cyber attacks, according to the report.
In response to the growing threat, programs like Cyber Wardens are helping small business owners spot the warning signs of AI-fuelled scams.
The program’s Safe AI for Small Business course highlights the ways AI is being used to create more sophisticated scams, such as highly convincing phishing emails and fake chatbots designed to trick business owners and their teams into handing over sensitive information or money.
Michelle, a Cyber Wardens graduate, says basic cyber security practices, such as multi-factor authentication and strong passwords, are now non-negotiable for small businesses.
But she remains surprised by how few businesses have simple measures in place, including password managers.
She also urges caution around sharing sensitive information with generative AI tools such as ChatGPT: “If you’re putting confidential data into these tools, you don’t own it anymore.”
She says the free Cyber Wardens program is a good starting point for owners and their teams to understand the biggest red flags of cyber crime, and learn how to start securing their businesses.
Michelle believes small businesses are well placed to adapt to new technologies, often better than large organisations.
“With the size of many small businesses, it’s much easier for us to adapt and change the workflow than it is for big corporations or government,” she says.
Don’t delay! Start your cyber security journey today with the free Cyber Wardens program.
The Safe AI for Small Business course helps demystify the benefits of AI, and shows that while AI-powered scams can be harder to spot, you can learn the simple skills to protect yourself and your business.
