Three AI Beliefs That Will Cost North West Businesses in 2026

Posted 06 February 2026 | 0 Comments

Richard Dawson, long-standing Chamber member and CPD-certified AI Trainer, has identified three comfortable beliefs that businesses across Chester, Wrexham and the wider region are holding onto-beliefs that feel safe but are quietly becoming competitive liabilities.

Following January's article on the "Shadow AI" explosion, Chamber members have been asking: "What are the biggest mistakes we're making?" The answer isn't technical-it's strategic. These are the three beliefs that matter most.

The 2026 Paradox

Early 2026 presents a striking contradiction. On one hand, 95% of professionals now use AI tools in their daily work. On the other hand, 95% of organisations still lack coherent governance. Leadership teams confidently rate their AI readiness, whilst research shows 70-85% of AI projects fail to reach production.

"These aren't technical failures," says Richard. "They're strategic blind spots. Most businesses are making decisions based on beliefs that feel safe but are actually creating risk."

Belief One: "My Staff Aren't Using AI, So We're Fine"

Many organisations that haven't formally rolled out AI tools believe their workforce isn't using AI. Leadership feels they've managed risk by not sanctioning adoption.

The evidence tells a different story. Research shows that 83% of in-house counsel use AI tools not provided by their organisations, and 47% do so with zero governance policies.

"Employees aren't being reckless-they're trying to keep up," Richard explains. "They cite time savings as the primary driver. But one in five companies has experienced data leakage due to employee use of AI. For law firms or consultants, this means client data or confidential relationships could already be in third-party AI training datasets."

The risk isn't just data leakage-it's that organisations believing "we don't have an AI problem" are running blind whilst competitors bring AI use into the open with governance and approved tools.

Belief Two: "My Client Relationships Protect Me From Disruption"

Personal trust and long-term client relationships feel like a form of protection against AI disruption. Many professionals believe "our clients hire us for the relationship, not commodity work."

The data points otherwise. Among medium-sized enterprises, 65% have adopted AI in 2025. SMEs are achieving 27-133% productivity gains post-AI implementation, with an ROI of £3.70 per £1 invested.

"If competitors offer equivalent quality 30% faster using AI, they win the next RFPs," says Richard. "The misconception isn't that relationships don't matter-it's that relationships alone are sufficient. In 2026, the competitive offer is relationships plus AI-enabled efficiency."

Belief Three: "AI Is Too Expensive for SMEs"

Small and medium-sized enterprises often believe that implementing AI is prohibitively expensive and reserved for large enterprises. When SMEs do consider costs, they focus on software licensing.

Both assumptions are wrong. Cloud-based subscription models have democratised access 80% of mid-size companies see operational cost reductions within their first year.

More critically, licensing isn't the main cost. Licence fees represent 30-50% of total AI implementation costs for SMEs. The remaining 50-70% goes toward integration, data preparation, training and ongoing operations.

"A 5-person law firm can implement AI-powered contract analysis at costs impossible 18 months ago," Richard explains. "But success requires clear-eyed budgeting for full implementation cost, not just licensing. What's holding back most projects isn't cost-it's organisational readiness and execution."

From Comfortable Beliefs to Strategic Clarity

These three beliefs share a theme: they're all safe to believe. Each allows professionals to feel they're managing AI risk whilst avoiding difficult organisational changes.

The firms moving ahead in 2026 have moved past these narratives. They've brought shadow AI into the open with governance. They're competing on relationships plus efficiency. They're budgeting realistically for transformation.

For Chamber members in Legal & Professional Services, Richard has created a FREE AI Strategic Confidence Discovery Session (usual value £195, expires 31/03/2026). This focused 45-minute session helps managing partners and senior decision-makers identify where AI adds value without compromising professional obligations, clarify their biggest AI concern, and determine their next best step.

Email [email protected] or connect with Richard on LinkedIn, mentioning "Chamber AI Discovery - Legal/Professional Services"