In the past two years, Britain has witnessed something quietly extraordinary. Not a new government initiative, not a sudden shift in economic fortunes, and certainly not a return to the halcyon days of low interest rates and booming consumer confidence. Instead, the transformation has arrived through a tool—ChatGPT—that many assumed would be a novelty, a curiosity, or simply an amusing piece of software that excels at pub-quiz trivia and whimsical poetry.
Yet British entrepreneurs—from university incubators in Edinburgh to high-street retailers in Manchester, from fintech founders in London to rural social-enterprise leaders in Devon—have discovered something far more significant. They have begun using ChatGPT not merely as a writing assistant, but as a strategic thinking partner. And one area stands out above the rest: the creation of business plans.
Traditionally, business plans were handwritten documents, later Word files, and more recently, slick presentations. But they were always labour-intensive. They required market research, financial projections, competitor analysis, a clear value proposition, an understanding of regulation, and—crucially—a way to articulate all these elements persuasively and coherently.
Today, ChatGPT can produce a polished draft in minutes.
This shift is not minor. It is structural. And as a member of a UK academic council who evaluates innovation, entrepreneurship, and digital transformation, I believe this phenomenon demands serious attention—not only because it affects how businesses launch, but because it shapes how the next generation of British entrepreneurs think.
In this commentary, I will explore the rise of AI-generated business plans, assess the benefits and risks for UK founders, and offer guidance on how Britain can harness this moment to strengthen—not weaken—its culture of innovation.
Contrary to fashionable opinion in Silicon Valley, business plans are not relics of a bygone era. They remain integral to the UK funding landscape. British banks, government schemes like Start Up Loans, regional investment funds, angel syndicates, and even university accelerators still expect entrepreneurs to present a structured plan.
The UK, unlike the US, does not offer abundant early-stage venture capital for untested ideas. Here, financial prudence matters. Clarity matters. Track record matters. And even for grants or innovation competitions, assessors expect to see coherence: a market, a need, a solution, and a pathway to sustainability.
In a country where entrepreneurship has historically been more cautious—and where many founders launch businesses while juggling mortgages, families, or full-time work—a well-constructed business plan remains the backbone of responsible innovation.
The question is not whether business plans are still relevant. They are.
The question is whether AI-generated business plans can support or undermine that relevance.
The adoption curve has been astonishing. When ChatGPT first emerged, few expected it to become a standard part of entrepreneurship toolkits. Yet within a year, UK workshops, incubators, and small-business advisers reported the same trend: founders were quietly using ChatGPT to draft executive summaries, tailor market analyses, and even produce financial forecasts.
Many do not publicise it. They simply deliver more polished documents—faster.
The reasons are obvious:
Speed: A first draft in minutes instead of days.
Research acceleration: While AI cannot produce proprietary data, it helps entrepreneurs structure what they need to research.
Clarity and tone: Many brilliant founders are poor writers. ChatGPT levels the linguistic playing field.
Idea refinement: AI can challenge assumptions, suggest models, and identify gaps.
Accessibility: For founders with dyslexia, ADHD, or limited English proficiency, the tool is transformational.
In short, ChatGPT is not merely writing text. It is reshaping thinking processes.
And that raises profound questions.
Some entrepreneurs are natural communicators. Most are not. The ability to express a business idea on paper has long been a barrier—especially for working-class founders, first-time entrepreneurs, immigrants, and those without formal business education.
ChatGPT gives them a head start.
Instead of wrestling with terminology, they can focus on substance. They can iterate faster. And they can produce documents that appear professional, persuasive, and structurally familiar to investors.
In this sense, ChatGPT is levelling the entrepreneurial landscape.
Writers know that starting is the hardest part. So do entrepreneurs. A business plan feels daunting—like trying to formalise a dream into a spreadsheet.
But ChatGPT eliminates the psychological barrier. Instead of staring at a blank page, founders begin with an imperfect but serviceable draft. They can then refine it, adjust it, and challenge it.
The effect on productivity is immense.
Business plans are not only documents; they are learning tools. They teach founders how investors think, which metrics matter, and which strategies stand out.
ChatGPT accelerates this learning.
For instance, a founder may not understand the difference between TAM, SAM, and SOM. ChatGPT explains it. A founder may struggle with customer segmentation. ChatGPT offers examples. A founder may be unaware of regulatory frameworks. ChatGPT flags them.
The tool acts as a tutor—even a mentor—for early-stage entrepreneurs.
Contrary to the assumption that AI makes people passive, many entrepreneurs report the opposite: ChatGPT prompts them to reflect more deeply. When they see their idea written out, certain weaknesses become clear. They ask better questions. They research more rigorously.
It is the difference between thinking vaguely and thinking structurally.
Not every founder can afford a consultant. In fact, many “business plan consultants” in the UK charge high fees for formulaic work. ChatGPT offers a free or low-cost alternative, particularly valuable during the cost-of-living crisis.
This does not replace accountants or lawyers—but it reduces dependence on questionable “consultancy mills”.
Despite its value, ChatGPT is far from infallible. The risks fall into several categories.
ChatGPT writes with confidence—even when it is wrong. It can misinterpret market data, fabricate trends, and gloss over complexity. Without critical evaluation, founders may mistake eloquence for accuracy.
This is dangerous.
Investors routinely report receiving AI-generated plans that sound impressive but collapse under basic scrutiny. The polished tone conceals shallow thinking.
AI nudges entrepreneurs toward pre-existing templates. It promotes familiar business models and avoids radical ideas. The result? The UK risks becoming a nation of generic subscription startups and uniform service platforms.
Innovation requires originality. AI encourages conformity.
Financial forecasts are the Achilles’ heel of AI tools. ChatGPT has no access to live UK market prices, inflation trends, tax structures, or cost models. It can create plausible numbers, but not accurate ones.
Entrepreneurs relying solely on AI risk producing fantasy projections.
A business plan is not a document—it is a process of customer discovery. Yet ChatGPT cannot interview customers. It cannot observe behaviours. It cannot test markets.
Some founders mistakenly believe AI eliminates the need for real-world research.
It does not.
Should entrepreneurs disclose AI use in a business plan?
Some investors expect transparency; others don’t care. The UK currently lacks clear guidance. But an applicant passing off AI-generated content as original strategic thinking risks damaging trust.
Beyond individual risks, ChatGPT raises broader cultural questions for British innovation.
Some argue that AI stifles imagination. But British entrepreneurship has always been hybrid—combining creativity with pragmatism. ChatGPT can be a partner in creativity, sketching new directions, exploring scenarios, and challenging assumptions.
AI does not limit imagination. But it may lull founders into derivative thinking unless they actively push back.
Digital tools often deepen regional inequalities. Yet ChatGPT is different: it requires only an internet connection. For rural founders who lack access to business networks and advisers, AI may be especially empowering.
This could decentralise British entrepreneurship.
Schools and universities must rethink their approach to entrepreneurship. If submitting an AI-generated business plan becomes the new norm, assessment must evolve.
The focus should shift from producing documents to demonstrating:
critical thinking
real customer insights
data literacy
ethical reasoning
originality
UK universities have an opportunity to lead the world here.
Across the UK investment ecosystem, reactions vary.
Banks are generally unconcerned about AI-generated text. They care about financial viability and personal guarantees, not prose. But they are increasingly cautious about unrealistic projections, which AI sometimes encourages.
Angels tend to be more sceptical. Many pride themselves on backing people, not documents. If a founder cannot explain their plan verbally, a perfectly written AI-generated PDF is worthless.
VCs expect AI use. They simply expect founders to go beyond it. A plan that reads like ChatGPT is easy to spot: too tidy, too generic, too symmetrical.
VCs want insights AI cannot produce: lived experience, contrarian analysis, and real traction.
Assessment bodies are struggling. Some entries in UK innovation competitions now read suspiciously similar. The government may soon require declarations of AI use—not to punish it, but to contextualise it.
(All examples anonymised.)
A first-time founder used ChatGPT to structure a business plan for a North-African fusion restaurant. The AI produced elegant descriptions but failed to account for rising energy costs, supply chain volatility, and local competition.
The founder refined the AI draft with real data, resulting in a far stronger plan—and later, a successful bank loan.
Lesson: AI accelerates structure; humans ensure substance.
A biomedical engineering graduate used ChatGPT to translate clinical research into accessible language for investors. AI helped articulate the problem, but market sizing required specialist knowledge and regulatory interpretation.
Lesson: AI enhances communication; humans provide expertise.
A community volunteer used ChatGPT to create her first-ever business plan. English was not her first language. AI enabled her to express her vision clearly and confidently, securing regional funding.
Lesson: AI expands access to entrepreneurship.
To harness AI responsibly and effectively, UK entrepreneurs should follow a structured approach.
Before touching AI, founders should gather:
customer interviews
competitor observations
price checks
regulatory considerations
market context
AI cannot replace this foundation.
Ask the model to:
outline a structure
summarise your idea
suggest sections
identify possible gaps
Do not accept surface-level answers—push it, refine it, iterate.
Cross-check:
statistics
regulations
costs
market data
timelines
ChatGPT is a starting point, not an authority.
Particularly:
value proposition
customer insights
competitive advantage
financial slides
risk analysis
Authenticity matters.
Speak with:
accountants
lawyers
industry mentors
advisers
potential customers
AI cannot simulate lived experience.
Transparency builds trust. A simple note such as:
“AI tools were used to support drafting and editing.”
is sufficient for most UK contexts.
As an academic adviser, I believe Britain should embrace AI while safeguarding quality, integrity, and innovation. To that end, I propose three recommendations.
Create clear, non-bureaucratic guidelines that:
encourage transparency
promote quality assurance
support responsible adoption
This protects assessors, applicants, and institutions alike.
Offer free or low-cost workshops through:
libraries
local councils
universities
business hubs
Such programmes would reduce inequality and strengthen economic resilience.
Innovation competitions should reward insights that AI cannot generate:
deep domain knowledge
user research
lived experience
community impact
creative problem-solving
This protects Britain’s competitive edge.
Some technologists claim that AI will eventually make business plans obsolete, replacing them with real-time dashboards and automated financial modelling.
Perhaps in Silicon Valley.
But in the UK? Unlikely.
Britain’s entrepreneurial ecosystem is built on prudence, structure, and strategic clarity. Investors here still value planning. Banks still value discipline. Grant assessors still value coherence.
AI may transform how business plans are written, but it will not eliminate why they exist.
If we look beyond today’s hype, a more nuanced future emerges. In five or ten years:
AI may draft 80% of business plan text.
Founders may focus entirely on strategy, research, and insight.
Investors may rely on AI for due-diligence screening.
Universities may teach “AI-augmented entrepreneurship” as standard.
Policymakers may adopt AI to analyse regional economic potential.
But one thing will not change: innovation begins with people. Their courage, intuition, and lived experience cannot be automated.
AI is a tool. It is not the entrepreneur.
ChatGPT is neither a threat nor a miracle. It is a catalyst—one that can strengthen British entrepreneurship if used wisely. As founders embrace AI-generated business plans, we must ensure that they do so with critical thinking, ethical awareness, and a commitment to originality.
The UK has a long tradition of balanced innovation. We champion creativity while respecting evidence. We embrace new ideas while safeguarding standards. And we understand that technology is most powerful when paired with human judgement.
If Britain leans into this moment—with clarity, confidence, and care—we can build a more inclusive, more dynamic, and more ambitious entrepreneurial future.
The business plan is not dead. It is evolving.
And ChatGPT is helping to write its next chapter.
