By Guest commentary Monday, January 26th, 2026

By Starr Hall

As the new year begins, many businesses across Santa Barbara and San Luis Obispo counties are carrying AI tools into 2026 the same way they carried gym memberships into January- full of intention, but not always clarity.

Over the past year, artificial intelligence moved quickly from novelty to necessity. Companies experimented with chatbots, automation tools, content generators, and analytics platforms, often in a piecemeal fashion. Now, as AI becomes embedded in daily operations, the question for local businesses isn’t whether to use AI, but whether they’re using it wisely.

January is an ideal moment for what I call an AI audit, a practical pause to assess what’s working, what isn’t, and what may be introducing more risk than reward. 

The excitement of early adoption has settled, and many tools that were once seen as cutting-edge are now integral to daily operations, often without anyone truly owning or evaluating them. 

Taking the time to step back allows businesses to catch silent inefficiencies, identify where AI is underperforming (or overreaching), and align technology use with real business goals. It’s not about hitting reset- it’s about recalibrating for impact, clarity, and sustainability in the year ahead.

WHY AN AI AUDIT MATTERS NOW

Many Central Coast businesses adopted AI reactively. A tool was added here, a shortcut was created there, and a freelancer suggested something new, but few stopped to ask how these tools aligned with company values, data policies, or long-term goals.

For industries prevalent in Santa Barbara and San Luis Obispo- hospitality, wine, agriculture, education, healthcare, and professional services, this matters more than ever. These sectors rely heavily on trust, reputation, and relationships, and AI missteps can quietly erode all three. An AI audit isn’t about pulling the plug. It’s about intentional use.

That’s exactly why I developed a simple set of audit questions- practical, non-technical prompts designed to help leaders step back and see the full picture. 

These came from dozens of conversations I’ve had over the past year with business owners, nonprofit directors, and startup founders across the Central Coast. Some were excited about AI, others were overwhelmed or unsure. 

But nearly all had one thing in common: they had adopted tools without clear direction or strategy. These questions are a starting point- not to overwhelm, but to clarify. They’re designed for real-world business owners, not AI engineers.

Here are five questions every local business should ask.

WHERE IS AI BEING USED?
Employees often use AI tools independently for emails, proposals, or analysis. If leadership doesn’t know where AI is showing up, it can’t manage risk or opportunity effectively.

ARE WE PROTECTING CUSTOMER DATA? 
AI tools don’t all treat data the same way. Businesses handling sensitive information- legal, financial, health, or education-related, should be especially cautious about what’s being shared and stored.

IS AI SAVING TIME?
If outputs still require heavy editing or correction, the efficiency gains may be overstated. AI should reduce friction, not introduce new bottlenecks.

ARE OUR TEAMS USING AI RESPONSIBLY?
AI literacy matters more than tool count. Without training or guidelines, even well-intentioned use can lead to inaccuracies or reputational risk.

DOES AI REFLECT OUR BRAND USE?
Central Coast companies often differentiate themselves through authenticity, craftsmanship, and community connection. AI should support those values, not dilute them.

WHAT THIS MEANS FOR SB AND SLO

Our region has always favored thoughtful innovation over fast hype. From research institutions to family-run businesses, the Central Coast tends to adopt new technology carefully and that instinct serves us well in the AI era. 

Conducting an AI audit gives businesses the opportunity to align their tools with actual operational needs, ensuring that technology isn’t just being used for novelty’s sake. It encourages the creation of clear internal guidelines, highlights where teams may need more training or support, and helps prevent potential legal or ethical issues before they arise. 

Most importantly, it opens the door for better conversations across leadership, departments, and even entire industries about how AI fits into the evolving future of work here on the coast.

LOOKING AHEAD

AI will continue to evolve, and regulation will likely follow. But for now, the most important step local businesses can take isn’t chasing the next platform; it’s pausing to evaluate what’s already in play. 

The companies that will thrive in 2026 won’t be the ones using the most AI tools; they’ll be the ones using them with intention, clarity, and care. January is a good time to ask better questions.

Starr Hall has over 25 years in PR, branding and marketing. She is the founder of Starr Hall Media in Santa Barbara.