Small business owners face a growing web of regulatory requirements that can slow operations and increase risk. On today’s episode of Business Trends Today, Gusto Chief Legal Officer and Co-President of SunLaw Group, Dina Segal, explains how AI can help businesses stay compliant and reduce operational burdens without getting buried in legal complexities.
Owners often struggle with compliance, HR, taxation, and operational tasks while growing their business. AI can reduce complexity by automating repetitive, high-volume tasks, allowing owners and employees to focus on core business activities.
Gusto’s data shows that more than 80% of companies are using AI for tasks such as writing and research, but AI can also handle more complex tasks. Segel emphasizes that before selecting a tool, small business owners should identify the persistent pain points in their business. By targeting AI solutions to specific operational challenges, owners can ensure the technology addresses their unique needs.
"You already know a lot about your business. So start with that problem and start finding the technology solutions that you can really trust."
AI can also help businesses navigate constantly changing federal, state and local regulations. The tools can proactively track regulatory changes and alert owners to updates that may affect operations. They can monitor compliance tasks such as onboarding employees, tracking hours and maintaining accurate records. Segal recommends selecting tools that combine a user-friendly interface with a strong compliance focus.
Preventable tax notices are a common problem for small businesses. AI-powered tools can manage the full lifecycle of tax compliance, from data collection to form filing and meeting deadlines. When properly configured, these tools reduce the risk of errors and help ensure businesses meet legal obligations on time.
AI is most effective when paired with human oversight. It should augment decision-making rather than replace it entirely, reducing manual workload and freeing employees to focus on higher-value tasks such as customer service or strategic initiatives.
Over 30% of entrepreneurs report that AI simplifies starting a business by reducing administrative burdens. The technology excels in research, drafting, marketing and process management. Consistent use improves both the accuracy and personalization of outputs, allowing the AI to adapt to company-specific needs over time.
Small business owners should start by addressing the most pressing pain points and selecting AI tools aligned with operational needs and compliance requirements. Empowering employees to manage and review AI outputs ensures accountability while maximizing efficiency.
When used thoughtfully, AI enables small business owners to manage compliance, streamline workflows, and concentrate on growth even amid complex and constantly changing regulations.
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