The rise of AI technology has seen businesses scrambling to get on board, but there are five key traps that entrepreneurs should avoid when launching an AI or ChatGPT-based startup. The first is to ensure there is a use case for the technology and not to assume it can solve every problem. Second is the need to have unique data to train the AI system. Third, entrepreneurs must ensure there is a market for their product that’s willing to pay for it. Fourth, regulatory approval is a critical consideration. Finally, entrepreneurs need to make sure that their product is not just a wrapper around the latest technology but adds something distinctive that will give it longevity.