Artificial Intelligence and Your Business: What Founders Should Know Before Making Representations and Warranties

Artificial intelligence (AI) is no longer just a buzzword; instead, it’s a practical business tool that companies of all sizes are integrating into operations, products, and services. From automating routine tasks to generating insights from data, AI is transforming how entrepreneurs build and scale their businesses. But with great opportunity comes important legal and strategic considerations, especially when it comes to what founders say about AI in contracts, pitches, and marketing. I have already seen representatives and warranties regarding the usage of AI in real-life contracts in my practice! I guess the world really evolves FAST (I still remember the time when I used a flip phone and dictionary)!

The AI Revolution: Tech is Taking Over

Artificial intelligence isn’t just tech jargon anymore—it is the headliner at the global innovation festival. From self-driving cars to AI-powered investment tools, AI is flipping industries upside down and rewriting the startup playbook. PwC estimates that AI will add over $15 trillion to the global economy and boost local GDP by 26% by 2030, with the broader market projected to hit $826 billion in just five years.

That’s not just a stat—it is a wake-up call. AI has shifted from a niche subject to a main stage act, captivating everyone from Fortune 500 execs to founders and innovators who are either building with AI or competing against those who are. 

I remember back in law school, grinding through legal textbooks until 2 a.m. and the struggle was real. Fast forward to now, and tools like ChatGPT can solve a semester’s worth of problems in minutes. For entrepreneurs, this isn’t just technological progress — it is a massive shift in the rules of the game. The message is clear: adapt fast or get left behind. Or, as 50 Cent would say: “Get Rich or Die Tryin’.”