AI For Small Business - AI Costs, AI Security, and reality versus AI

Welcome back to AI for Small Business! This week’s stories paint a fascinating picture of small businesses navigating both the opportunities and challenges that come with our AI-powered world. From smart implementations to serious security concerns, here’s what you need to know.

🏪 Real Stories from Real Business Owners

Sometimes the best way to understand AI’s potential is to see how your peers are using it. Three Evanston business owners are showing exactly that—one uses AI for consulting research, another for marketing content creation, and a third for real estate analysis. What’s particularly encouraging is that 67% of Illinois small businesses have already adopted AI platforms in some form. These aren’t tech companies or massive corporations—they’re everyday small businesses finding practical ways to expand their operations without expanding their staff.

🤔 When AI Adoption Gets Complicated

Here’s a story that highlights something important: not every AI implementation is straightforward. When Stacy’s at Melrose announced plans for an AI chatbot, they faced unexpected protests from their community. The situation raises thoughtful questions about whether businesses serving marginalized communities should approach AI differently. While the bar sees it as an efficiency tool, critics worry about surveillance and the loss of human connection in spaces where that connection matters most. The takeaway for your business isn’t to avoid AI, but to consider how your specific customers might feel about it.

⚠️ The Security Wake-Up Call You Can’t Ignore

Now for some sobering news that demands your attention: four out of five small businesses experienced cyberattacks last year, with nearly half of those attacks powered by AI. This isn’t just about inconvenience—many businesses had to raise prices to cover the costs, passing those expenses directly to customers. The same technology that can help your business grow is also making cybercriminals more sophisticated. If you haven’t already, it’s time to seriously evaluate your cybersecurity measures and consider whether your current protections are sufficient for today’s AI-enhanced threats.

⚡ The Hidden Cost of AI’s Growth

Here’s an angle you might not have considered: AI’s massive data centers are consuming so much electricity that they’re driving up power costs for everyone, including small businesses like yours. Lawmakers from over a dozen states are now proposing legislation to make tech companies pay more for the grid upgrades their energy-hungry operations require. While this might eventually help stabilize your electricity bills, it’s worth factoring potential energy cost increases into your business planning for the next few years.

Looking at these stories together, it’s clear that 2026 is shaping up to be a year where small businesses need to be both bold and careful with AI. The technology offers real opportunities to compete and grow, but success requires thoughtful implementation and serious attention to security.

What’s your experience been with AI in your business? Hit reply and let me know what’s working (or not working) for you.

Until next time, The MarketStreet Team