If your business is using or thinking about using AI, you’ve probably heard all the promises of speed, savings and scalability. What’s getting less airtime is the very real risk that a tool could tank your reputation faster than a dodgy customer review.
I’ve worked with businesses of all sizes for more than 30 years, helping demystify technology. With every wave of new technology comes a fresh set of risks. Right now, we’re watching those risks unfold in real time.
The Vogue blow-up: A warning for all businesses
In July 2025, Vogue ran a two-page ad spread for Guess using AI-generated models. The reaction? Not pretty. Readers flooded social media, accusing both brands of replacing real talent with synthetic perfection.
Vogue’s reaction: “It’s just an ad.”
Guess says: “It’s the future.”
Readers: “We’re out.”
If global brands with million-dollar marketing teams can get it so wrong, imagine the impact on a small business without a crisis comms team on speed dial.
What can go wrong?
AI is fast but emotional intelligence isn’t its strong suit. Let’s review a few of the ways AI could land you (and your brand) in hot water:
- Assumed intent: Clients can and will make their own assumptions about your AI use. Perceptions alone can cause damage.
- Visual content backlash: Are your AI-generated images free from bias and context slip-ups? It’s a fine line between clever and controversial.
- Chatbots gone rogue: Misunderstood tone, outdated or wrong information damages trust. We’ve seen this one play out a lot.
- Off-brand content: AI-generated copy needs review. If it sounds robotic or off, people will notice. Fast.
AI needs humans
Just because AI can doesn’t mean it should. Here are a few of the high risk zones to be mindful of:
Customer service: Auto replies are helpful but build in human follow-up. People want empathy, not just efficiency.
Recruitment and HR: Screening CVs? Great. But AI bias is real. Keep humans in the loop.
Marketing content: I use Linus (my AI assistant) to support pretty much all my content creation. But I fact-check everything. If my name is on it, I’ve read it, checked it and approved it.
Disclose your AI use
Transparency builds trust. EU data shows consumers stick with brands that disclose their AI use. With Australia still on voluntary guidelines, now’s the time to lead with ethics.
You don’t need to make a song and dance about it. A simple line like “we use digital tools to support your experience” is enough.
Every email I send includes a short PS: “This email is 100 per cent Tracy. 0 per cent fluff. With Linus (the AI sidekick) on cleanup duty. No robots were harmed.”
Avoiding an AI-fuelled PR headache
- Audit before you automate
Test tools in real-world situations. Check tone, accuracy and worst-case scenarios. Bonus points if you involve and ask clients for feedback. - Train your team (and yourself)
AI literacy is the new currency. Understand what your tools are doing… and why. Spot red flags before they hit the public. - Have a backup plan
You build contingency plans for all manner of risks associated with business. AI should be no difference. If something goes wrong:- Who within your team is responsible to rectify the situation?
- What gets said to your clients, when and to whom?
- When do you need to escalate or apologise?
AI is neither good nor bad
The biggest risk isn’t AI, it’s how we use it. Blindly accepting AI output is playing reputation roulette.
Used well, AI can lift your team, improve service and sharpen your edge. The difference? Intention, transparency and common sense.
At the end of the day, customers aren’t looking for perfect. They’re looking for real.
