Should I use AI to Write my Business Plan?
Today it’s easier than every to generate a business plan with a few clicks. AI tools like ChatGPT or AI software can rapidly create content in so many areas of our lives, allowing us to save massive time and money. But should you use it write your business plan?
Let’s break it down.
✔︎ The Pros of AI Business Plans
AI business plan generators have become popular for three main reasons:
Speed – You can generate a full business plan draft in under an hour.
Low Cost – Many tools are free or charge minimal monthly fees.
Ease of Use – No writing experience needed; you just fill in prompts.
For idea-stage founders looking to brainstorm or visualize an early concept, these tools can be extremely helpful. It is also helpful to create plans, map out an implementation plan and even crunch revenue numbers.
✘ Where AI-Generated Business Plans Fall Short
1. Generic, Vague Content
AI tools rely on generalized patterns and public data. That means that ideas and information often overlaps and duplicates other existing businesses and common practices.
Lacks a fresh, unique perspective
Similar to very other business in your industry
Lacks specific market research, competitor research
No competitive research specific to your city or niche
2. It’s Easy to Tell it’s AI Generated
While there is nothing wrong with AI-generated content, it is usually easy to spot. If you submit a business plan to secure financing that is obviously AI-generated you run the risk of losing credibility because it can raise suspicion around how knowledgeable you actually are around your business.
After all, the primary purpose of a business plan is to build trust and authority for you and your business concept. This is accomplished by presenting a clear vision and organizational plan for your business while showcasing your knowledge to a lender. An AI-generated business plan - even if well-written - can raise doubts and suspicion under scrutiny and may hurt your chances.
When you write your own business plan, or outsource to a professional business plan writer, you are deeply involved in the business plan writing process. This connection with your business plan translates into your final presentation for bank or investor financing. Additionally a business plan consultant is considered a part of your team and are often included in dialogues in the post-submission phase.
3. Accuracy is Still Lacking
AI is still in its infancy and is expected to continually improve in its accuracy, but as of today it maintains significant inaccuracy issues in several areas. These include:
Calculations are commonly calculated incorrectly
Market research figures and market size data don’t match reports or figures are invented
Inaccurate information around specific companies, product details, etc.
This may be suitable at low investment levels that require a general concept understanding, but at larger financing figures the plan undergoes more scrutiny and inaccuracies can halt the funding process.
4. Weak Financial Projection Modelling
Many AI tools either:
Skip the financials entirely,
Provide flat, unrealistic estimates, or
Lack proper formatting for bank or investor review.
This is significant weak point in AI-generated business plans because your financial projections are a vital pillar of your overall business plan. Banks and investors expect 3-5 year projections with an integrated Profit and Loss, Cash Flow and Balance Sheet statement. A business plan will include other financial areas such as a break-even analysis and loan repayment schedule. Weak financials create a weak business plan, especially if you are using the plan to secure a bank loan or investment.
For example, it's not recommended to rely on an AI-generated business plan for a M&A business plan or IPO.
5. Uniqueness is Watered Down
AI doesn’t know your business goals, personality, or differentiators. It can’t:
Position your brand in a competitive market
Highlight your individual strengths, passions and insights
Communicate your passion
In short: AI lacks the human insight that makes a plan persuasive. Your passion and perspective are valuable assets when presenting your business and AI business plans typically fail to communicate them.
6. Compliance Issues
If you’re applying for:
A bank loan
Startup Visa (SUV) immigration
A government grant or licensing application
…your business plan must meet strict formatting, language and documentation standards. AI-generated plans usually fail to meet these thresholds — especially for Canadian immigration or regulatory submissions.
When Is AI Most Useful?
AI tools can be helpful in many ways in business planning:
Brainstorming business model ideas
Summarizing your business plan concept as a one-pager or pitch deck creator
Drafting a basic outline
Generating first-pass text to refine later
Researching industry definitions or terminology
Rewriting specific areas of your business plan
AI is a powerful tool to assist your process, but not replace it.
Final Verdict: AI is a Tool, Not a Solution
AI is an powerful technology that is supporting so many areas of our life and business, and business plan writing is no different. But AI is best used as a TOOL in your business plan writing process, not the plug-and-present magic wand that many websites may sell you. Your business plan still needs strategic thinking, custom work and your human touch - especially when you’re using it to secure a big financial target.
Need assistance with your business plan or would like to revamp your AI-generated business plan? Speak with a business plan expert today.