👋 Welcome back to Bite Sized Bots!
Last week, we talked about using AI to move faster without losing your voice.
This week, let’s look at something every small business owner eventually discovers: AI can sound completely confident—and still be wrong.
What’s Inside This Issue
A real “confident mistake” that slipped through ChatGPT
Why hallucinations happen (and why they’re your problem)
The 🚩 5 Red Flags Framework for quick fact-checking
A 60-second verification routine
Pro tips and go-to tools for smarter validation
The Confident Mistake
A few weeks ago, while writing The Cashflow Crystal Ball issue, I asked ChatGPT for data on how small businesses use AI in finance.
It confidently produced this line:
“According to the U.S. Chamber’s 2025 Small Business AI Report, 85% of owners using AI in finance expect positive ROI.”
Sounds legitimate, right?
Except… there is no 2025 Small Business AI Report.
After fact-checking, I found the real source and revised it to read:
“According to the U.S. Chamber’s 2025 Empowering Small Business Report, small businesses using AI continue to outperform peers and believe access to AI is critical to their financial health.”
The difference is subtle—but important.
That’s what makes AI tricky: it’s wrong with the same confidence it’s right.
Why “Hallucinations” Are Your Problem
Why it happens: AI predicts what sounds correct, not what’s factually true.
Why it matters: Your audience sees your name on the output, not the AI’s.
The fix: Learn to spot when to verify. You don’t need to fact-check everything—just the red flags.
🚩 The 5 Red Flags Framework
Red Flag | Why It Happens | Quick Fix |
|---|---|---|
Numbers & Stats | AI mimics the way stats look | Google or use Perplexity.ai to confirm |
Dates & Timelines | Data cutoff confusion | Check with current official sites |
Quotes & Citations | Generates fake sources | Search in quotes, follow the link |
Technical Details | Lacks subject expertise | Verify with domain experts |
Recent Events | Invents “latest” info | Confirm through current news or trusted reports |
🧩 Pro tip: I often run a quick double-check using Perplexity.ai and Google together.
Perplexity always lists its sources—which makes it faster to confirm what’s real and what’s invented.
1. Numbers and Statistics
If a percentage or market size fits too neatly into your point, pause.
✅ Google the stat or run it through Perplexity.
✅ Ask AI for its source, then verify it actually exists.
2. Dates and Timeframes
AI often confuses timelines or fabricates “recent” changes.
✅ Confirm regulatory or event dates on official sites.
✅ Be extra cautious with anything from the last 12–18 months.
3. Quotes and Citations
Fake citations are one of AI’s most believable mistakes.
✅ Copy quotes into Google or Perplexity.
✅ Click through URLs—many lead to unrelated or nonexistent pages.
4. Technical or Industry Details
AI generalizes expertise it doesn’t have.
✅ For financial, legal, or medical info, confirm with official or professional sources.
✅ Trust your gut—if it sounds off, it probably is.
5. Recent Events and Trends
LLMs don’t truly “know” what happened after their training cutoff.
✅ Search the event or report name with the current year (e.g., “AI small business report 2025”).
✅ Replace or update outdated information manually.
🕐 Your 60-Second Verification Routine
30 seconds — Scan for Red Flags
Numbers? Dates? Quotes? New trends? Highlight anything that looks too specific.
30 seconds — Quick Check
Plug questionable claims into Google or Perplexity.
If the claim vanishes or the source doesn’t exist—it’s out.
✅ If it holds up → Keep it
❌ If it fails → Rework or remove it
AI + Human Roles
AI Does | You Do |
|---|---|
Drafts and structures ideas fast | Verify high-stakes facts |
Suggests examples and phrasing | Adjust tone, nuance, and truth |
Fills knowledge gaps | Apply judgment and real-world experience |
💡 Result: Speed and credibility, working together.
That’s Human-First AI in action.
Example in Action
When ChatGPT gave me that fake “U.S. Chamber’s 2025 Small Business AI Report” stat, it wasn’t lying—it was predicting what a real citation might look like.
Here’s how I handled it:
Red Flags Spotted: Numbers + Citation 🚩🚩
Quick Check: Searched Google and Perplexity → no matching report found.
Correction: Found the real Empowering Small Business Report (U.S. Chamber, 2025).
Rewrite: Adjusted to reflect verified language:
❝“According to the U.S. Chamber’s 2025 Empowering Small Business Report, small businesses using AI continue to outperform peers and believe access to AI is critical to their financial health.”
✅ Outcome: Clearer, accurate, still human in tone.
💡 Note: While the specific “85% ROI” figure was fabricated, similar studies from reputable sources (like Salesforce’s Small Business Trends Report and McKinsey’s State of AI Survey) do show that a strong majority of small businesses using AI report measurable performance gains.
In other words—the optimism wasn’t wrong, but the citation was.
Pro Tips & Trusted Tools
Save time and stay accurate with these quick habits:
Use Perplexity.ai for cross-checking—it automatically lists its sources.
Use Google Advanced Search with quotes (“exact phrase”) to spot fake citations.
For financial, legal, or compliance info, go straight to .gov or .org sources.
Keep a running list of verified go-to sources (industry reports, trade orgs, official data).
Read your AI-assisted copy out loud — fake facts often sound slightly off.
Speed Is Great. Accuracy Builds Trust.
AI can write fast—but only you can make it credible.
Every time you take a minute to verify what looks “too perfect,” you’re protecting the one thing AI can’t replace: your reputation.
That’s Human-First AI in practice.