Adopting AI in a startup offers huge potential, but it comes with risks that founders must navigate carefully. High costs, poor data quality, and integration challenges can derail projects, while overreliance on AI or unrealistic expectations may lead to mistakes or disappointment. Ethical and privacy concerns, especially around customer data, can also harm your brand if not handled properly. To mitigate these risks, startups should start small with low-cost AI tools, ensure their data is clean and reliable, integrate AI gradually into existing workflows, maintain human oversight, and set clear, realistic goals. By planning thoughtfully and using AI as a supportive tool rather than a complete replacement, startups can leverage its benefits while minimizing potential pitfalls.