The Human Element: Joseph Ferriolo on Why AI-Generated Business Plans Are Failing to Secure Funding and Visas
In an era where artificial intelligence promises to streamline every aspect of business operations, a concerning trend is emerging in the world of business planning. Joseph Ferriolo, Director of Wise Business Plans and member of the Forbes Business Council, has issued a stark warning to entrepreneurs: AI-generated business plans are increasingly being flagged and rejected by banks, immigration officers, and investors. With over two decades of experience in finance and business planning, and having overseen more than 15,000 business plans that have collectively raised over $2 billion in funding, Ferriolo has witnessed firsthand the stark difference between AI-generated content and human-crafted strategic documents. His company’s recent analysis of over 300 AI-generated business plans reveals alarming statistics that should give any entrepreneur pause before choosing the seemingly convenient AI shortcut.
Interview Questions:
1. Your recent report shows that 88% of AI-written business plans lack compliant financial projections and 71% fail to include industry-specific content required for regulatory review. From your experience reviewing over 300 AI-generated plans, what are the most glaring deficiencies you observe, and how are banks and immigration officers specifically training their staff to identify these automated documents?
Joseph Ferriolo.
The most glaring deficiencies we’ve seen are in the financials and industry specificity. Over 88% of the AI-generated plans we reviewed lacked compliant, scenario-based financial forecasts—things like realistic revenue growth curves, break-even points, and cash flow projections. Many use vague assumptions without aligning to SBA underwriting criteria or investor expectations.
Additionally, 71% failed to include language or data specific to the client’s business model or industry. They often miss critical sections like market validation, operational benchmarks, or competitive barriers. Banks and immigration officers are now actively trained to spot these issues. Some use internal AI detection software, while others flag plans with generic phrasing, missing NAICS codes, or repetitive sentence structures. It’s becoming a real risk for entrepreneurs using these tools.
2. You’ve documented cases where AI-generated business plans directly contributed to SBA loan denials and USCIS requests for evidence during E-2 visa evaluations. Can you share specific examples of how these rejections impact entrepreneurs, particularly immigrant investors who face tight visa timelines, and what the financial and personal costs of these failures typically amount to?
Joseph Ferriolo.
Absolutely. One E-2 visa client came to us after submitting an AI-generated plan that was rejected by USCIS with a Request for Evidence (RFE). The plan had no cost breakdown for employee hires, no operational plan, and made earnings claims without substantiation. That delay cost them over three months—and nearly jeopardized their legal status.
Another case involved a franchise owner seeking an SBA 7(a) loan. Their AI-written plan lacked a repayment schedule and misrepresented the franchise’s item 19 earnings disclosure. The lender denied the loan, citing “lack of credible financials and incomplete documentation.” That setback cost them a six-figure expansion opportunity. The personal and financial toll of these failures is enormous—and largely avoidable.
3. With your background spanning traditional banking institutions and over 15,000 custom business plans across 400+ industries, how do you explain to clients why human expertise in areas like franchise disclosure document interpretation, regional compliance, and market validation cannot be replicated by AI tools, no matter how sophisticated they become?
Joseph Ferriolo.
Because regulations aren’t one-size-fits-all—and neither are businesses. AI tools don’t truly understand the nuance in franchise law, regional zoning, or licensing issues. They can’t interpret FDDs the way an experienced consultant can. For example, an Item 19 earnings claim isn’t just a number—it’s a legal representation that has to be supported by real-world franchisee data.
Our team knows how to frame those claims while maintaining compliance, and how to build models that resonate with specific funding channels. That’s why our clients—from fitness franchise founders to logistics startups—choose us. AI might generate a few paragraphs quickly, but it lacks context, strategy, and the liability-aware lens human experts bring.
4. As financial institutions and immigration agencies become more sophisticated in identifying AI-generated content, what specific techniques and technologies are they employing to flag these documents, and how do you see this detection capability evolving in the coming year as AI tools themselves become more advanced?
Joseph Ferriolo.
We’re seeing a major shift in how both financial institutions and immigration agencies handle document verification. They’re no longer just reviewing business plans at face value—they’re actively analyzing content quality and origin. Banks, for instance, now utilize internal AI detection tools that scan for telltale signs of machine-generated text, such as repetitive sentence structures, lack of contextual depth, or generic financial assumptions that don’t align with the borrower’s industry or geography.
USCIS officers have also begun informal training on how to spot AI-generated submissions. They’re looking for missing NAICS codes, vague or boilerplate language in market sections, and inconsistent financials that aren’t backed by source data. When these red flags appear, it often results in Requests for Evidence (RFEs) or outright denials.
Looking ahead, I expect these agencies to integrate more advanced natural language processing (NLP) tools into their review workflows—tools that not only detect AI-generated text but assess logical consistency and factual accuracy. AI tools are evolving, but so are the detection systems. In fact, I wouldn’t be surprised if a digital watermarking or signature-based system is implemented in the next 12–18 months to verify whether a document was human-authored or AI-generated.
For entrepreneurs, this means the margin for error is shrinking. If your plan lacks human judgment, regulatory alignment, and contextual relevance, you’re not just risking a bad impression—you’re potentially sabotaging your funding or immigration outcome before your application is even read in full.
5. Given that Wise Business Plans works directly with SBA-preferred lenders, immigration attorneys, and franchisors, what advice would you give to entrepreneurs who are tempted by AI solutions about the long-term strategic value of investing in human-crafted business plans, especially in today’s increasingly competitive funding and immigration landscape where credibility and compliance are paramount?
Joseph Ferriolo.
Many banks now use natural language processing tools to detect patterns typical of AI writing—such as overuse of filler phrases or repetitive structures. Others use third-party software that cross-checks content against known AI outputs. Immigration officers are increasingly trained to look for missing USCIS-required elements, such as detailed investment usage, job creation timelines, or NAICS-aligned industry descriptions.
As AI tools get more advanced, so too will these detection systems. We expect a major crackdown on low-quality submissions by 2026, especially as AI-generated content floods the system. Institutions will place more weight on verified, credentialed business planning firms and demand traceable methodologies—something only real professionals can provide.
Conclusion
Joseph Ferriolo’s warning comes at a critical juncture when the allure of AI efficiency must be weighed against the fundamental need for credibility and compliance in business planning. His insights, backed by extensive data and decades of industry experience, highlight a crucial truth: while technology continues to transform business operations, the high-stakes world of securing funding and visas still demands the nuanced understanding, strategic thinking, and regulatory expertise that only experienced human professionals can provide. As entrepreneurs navigate an increasingly complex landscape of lending requirements and immigration regulations, Ferriolo’s message is clear—the cost of cutting corners with AI-generated plans often far exceeds the investment in professional, human-crafted strategic documents that open doors rather than close them.
To learn more or schedule a call, visit: www.wisebusinessplans.com
