Before we get started this week, a quick shameless ad:

If you're enjoying this newsletter then check out my book, Startup Different, which goes deeper on a lot of the business topics I cover here. You can find it on Amazon, Audible and Kindle.

And now, onto this week's newsletter.

One of the Best Business Opportunities Right Now Isn’t AI…

It’s managing the risk that comes with it.

Everyone is rushing into AI.

Teams are spinning up tools.

Workflows are being automated.

Decisions are being influenced by models.

And it’s happening fast.

Maybe too fast.

AI Adoption Is Outpacing Governance

Here’s what I’m seeing across businesses right now:

People are implementing AI before they fully understand:

  • What data they’re exposing

  • What decisions AI is influencing

  • What risks they’re taking on

The pressure to “not fall behind” is pushing companies to adopt tools before they’ve built the guardrails.

And that creates a gap.

The Risk Side Is Getting Bigger, Not Smaller

At the same time, AI models are getting more powerful.

Which means:

  • They can access and process more sensitive data

  • They can influence more critical decisions

  • They can expose more vulnerabilities

We’re already seeing early signs of this:

  • AI identifying software weaknesses faster than humans

  • Increasing concerns around data privacy and leakage

  • Companies unsure of what’s actually happening under the hood

The more capable the tool, the greater the risk surface.

Most Businesses Aren’t Equipped for This

This is the key point.

Most small and mid-sized businesses:

  • Don’t have internal AI policies

  • Don’t have governance frameworks

  • Don’t have risk mitigation processes

They’re using powerful tools…

Without the structure to use them safely.

That’s Where the Opportunity Is

Everyone wants to build the next AI tool.

But one of the best opportunities right now isn’t building AI.

It’s helping businesses use it properly.

Specifically:

Compliance and risk management for AI.

Why This Is Such a Strong Business Right Now

Think about what’s happening:

  • AI is being adopted across every industry

  • Regulations are starting to catch up (slowly, but they will)

  • Security risks are increasing

  • Companies are realizing they don’t fully understand what they’ve implemented

That combination creates demand.

And not theoretical demand.

Immediate demand.

Especially in industries like:

  • Finance

  • Healthcare

  • Legal

  • Insurance

Anywhere compliance already matters…

AI just made it more complicated.

What This Actually Looks Like in Practice

A business in this space could help companies:

  • Audit how AI is being used internally

  • Identify data exposure risks

  • Build internal AI policies

  • Create approval workflows for AI usage

  • Ensure compliance with emerging regulations

  • Train teams on responsible AI use

The Pattern Here

This happens every time there’s a major technological shift.

The first wave builds the technology.

The second wave figures out how to use it safely and effectively.

That second wave is where a lot of businesses get built.

What This Means for You

Even if you’re not starting a new company, this still matters.

If you’re running a business today, you should be asking:

  • Where are we using AI right now?

  • What data is flowing through these tools?

  • What decisions are being influenced by AI?

  • What happens if something goes wrong?

Because AI isn’t just a productivity tool.

It’s an operational risk.

AI is moving faster than most businesses can handle.

And that gap between adoption and understanding?

That’s where the opportunity is.

For some, it’s a risk to manage.

For others, it’s a business to build.

Thanks for reading!
Dave

Keep Reading