How to choose AI tools for a small business
A practical checklist for choosing AI tools for an Australian small business: off-the-shelf vs custom, data access, testing and the questions to ask.
Short answer: choose the tool that solves one specific problem, works with the software you already run, lets you control what happens to your data, and lets a person approve output before it reaches a customer. Brand names matter less than those four things.
I won’t recommend a specific product in this post, because the right one depends on what you already use. What I can give you is the checklist I use.
1. Define the job first
business.gov.au says to identify how AI can help, then research the best solutions for your needs (source). “We need an AI tool” isn’t a job. “Draft replies to new enquiries within the hour” is.
2. Look at what you already pay for
Before buying anything new, check the AI features in your current software: email, CRM, marketing tools, accounting software and design tools (business.gov.au). Fewer tools means fewer logins, fewer bills and fewer places your data lives.
3. Off-the-shelf or custom?
From business.gov.au:
| | Off-the-shelf | Custom | |—|—|—| | Cost | tends to be cheaper | tends to be more expensive | | Setup | quicker and easier | slower | | Reliability | tested by many users | depends on the build | | Fit | general | tailored to your problem | | Ongoing | usually subscription | support and maintenance costs | | Data | — | needs high-quality, well-organised data |
My opinion: start off-the-shelf, and go custom only when a job is valuable enough and your data is tidy enough.
4. Ask the data questions
This is where most small businesses skip ahead. The OAIC suggests asking (OAIC):
- Will the developer or third parties get access to what you put in or get out?
- Can you turn those features off?
- Where is it hosted? If it’s in the cloud, could information go outside Australia?
- Are there known security incidents?
The OAIC notes some commercial AI products have terms or settings allowing the provider to use your inputs to train their AI. Read the settings page, not just the sales page.
5. Check it can be supervised
Can the tool draft without sending? Can you see what it did? Can you switch it off quickly? business.gov.au says you should have a clear process to override or stop using an AI tool if something goes seriously wrong (source).
6. Test it before you trust it
business.gov.au says to make sure the supplier has tested the tool properly, the tool works as you expect, you understand what data it uses and how it’s stored, and it won’t compromise cyber security (source). Run it on real (non-sensitive) examples for a couple of weeks.
7. Write it in your AI register
For each tool, note why you use it, who’s responsible, its limits and its risks. The National AI Centre has a free AI register template, linked from business.gov.au.
Red flags
These are my opinion, from setting these up: - The tool can’t draft without sending. - You can’t find where data is stored or whether it’s used for training. - The salesperson promises exact hours saved without looking at your business. - It needs you to move all your work into a new system before it does anything useful.
How I choose tools for clients
During the free audit I look at what you already use (Gmail or Outlook, your calendar, your job or CRM app, your accounting software) and build around that, as far as those tools’ integrations allow.
FAQ
Should a small business use off-the-shelf or custom AI? Usually start off-the-shelf. business.gov.au says off-the-shelf tools are cheaper, quicker and widely tested, while custom tools cost more and need good data.
What should I check before choosing an AI tool? Whether it solves a specific job, works with your current software, who can access your data, whether inputs train the provider’s AI, and whether a person can approve output.
Do I need to test an AI tool before using it? Yes. business.gov.au says test it thoroughly first, including for privacy and cyber security issues, and keep monitoring it after.
Can AI tools use my data for training? Some can. The OAIC notes some commercial AI products have terms or settings allowing providers to use customer inputs for training. Check the settings.
Next step
If you want to know which jobs in your business are worth handing to AI, book a free AI audit. It takes 1–2 hours, there’s no obligation, and you walk away with a written plan of 3–5 tasks, whether you work with me or not.
Sources
- https://business.gov.au/online-and-digital/artificial-intelligence
- https://www.oaic.gov.au/privacy/privacy-guidance-for-organisations-and-government-agencies/guidance-on-privacy-and-the-use-of-commercially-available-ai-products
