Over the last year, I’ve noticed a sharp shift in the types of calls I receive.
More and more business owners are reaching out who aren’t running traditional tech companies. They operate service businesses, product businesses, or professional practices. What’s new is that they now want to bolt on a tech component.
And they’re doing it themselves.
With modern tools, non-developers can now build real software. Tools like Replit, no-code and low-code platforms, and easy API access have removed many historical barriers. A motivated founder can stitch together APIs, prompt AI models, and deploy working products in days, not months.
That is a genuine shift.
Software Code Is Becoming a Commodity
For many early-stage businesses, the code itself is no longer the hard part.
You can:
- Call third-party APIs
- Generate large portions of code with AI
- Deploy quickly with managed infrastructure
- Iterate without a development team
In that sense, software is becoming more like plumbing. The tools are accessible. The components are off-the-shelf.
But that does not mean the risks disappeared.
You Still Need a Professional Code Review
One thing I stress to founders: accessibility does not equal safety.
AI-generated or self-written code can:
- Expose customer data
- Create security vulnerabilities
- Mishandle authentication
- Fail under load
- Breach third-party API terms
Even if you “vibe-coded” the product yourself, it is still worth having a professional developer review the code before you put it into the world. That review is about risk reduction, not perfection.
Where I see founders get into trouble is not usually the code quality. It’s what sits around the code.
The Real Exposure Is Legal and Commercial
What vibe-coding has done is make it incredibly easy to launch something that looks like a tech company without thinking through the legal consequences of acting like one.
The moment you:
- Collect data
- Charge users
- Automate decisions
- Rely on third-party platforms, or
- Market a software-enabled product
- you have legal exposure
And that exposure often surprises founders who didn’t think of themselves as “tech startups.”
A Practical Checklist for Vibe-Coded Startups
If you are adding a tech layer to an existing business, these are the issues you should think through early.
1. Corporate structure and liability
Are you operating through a corporation, or personally? Software increases risk. Personal exposure increases fast if something goes wrong.
2. Ownership of the code and IP
- Who owns the software?
- You?
- The company?
- A contractor?
- An AI tool subject to restrictive terms?
- If this is not clear, it becomes a problem later.
3. Third-party API and platform terms
Most APIs come with restrictions on use, monetization, branding, and data handling. Violating those terms can get your product shut down overnight.
4. Privacy and data protection
If you collect personal data, even minimally, privacy laws apply. This includes storage, consent, disclosure, and security safeguards.
5. Customer contracts and disclaimers
Software changes how customers rely on your business. Terms of service, limitation of liability clauses, and clear disclaimers matter more than founders expect.
6. Security and breach exposure
If data leaks or systems fail, the legal issue is not “I built this myself.” It is “you were responsible.”
7. Insurance gaps
Many general business insurance policies do not cover software-related risks. Tech exclusions are common.
8. Employment and contractor risk
If others helped build or maintain the system, misclassification or unclear IP assignments can create downstream ownership disputes.
9. Regulatory creep
Software often pulls businesses into regulated areas without founders realizing it. Payments, consumer protection, advertising, and AI-driven decisions can all trigger rules.
10. Exit problems
When you sell a business, buyers care deeply about IP ownership, compliance, and risk. Vibe-coded products without proper legal foundations often reduce deal value.
This Is Exactly Why I Wrote My Book
These issues are not theoretical. They come from real disputes, real lawsuits, and real founders who moved fast without stopping to protect themselves.
My book, The Law for Founders: Canadian Edition, walks through these risks in plain English. It focuses on practical decisions founders make early and how those decisions play out later, for better or worse.
If you are building a software-enabled business, even accidentally, you should understand the legal framework you are operating inside.
You can learn more about the book here:
The Law for Founders: A Guide to Protecting Your Startup
Building has never been easier.
Protecting what you build still matters.