Artificial intelligence (AI) is revolutionizing how businesses operate, with popular tools like ChatGPT, Google Gemini, and Microsoft Copilot transforming content creation, customer support, email drafting, meeting summaries, and even coding or spreadsheet management.

AI offers incredible productivity gains and time savings. However, without proper safeguards, it can also expose your company to significant data security risks.

These risks affect businesses of all sizes, including small enterprises. The NIST AI Risk Management Framework identifies data privacy leakage as one of the top risks organizations face when adopting AI tools.

Understanding the Risk

The danger doesn’t lie in AI technology itself but in how it’s used. When employees input sensitive information into public AI platforms, that data might be stored, analyzed, or even leveraged to train future AI models—potentially exposing confidential or regulated information without anyone realizing.

For example, in 2023, Samsung engineers accidentally leaked internal source code via ChatGPT, prompting the company to ban public AI tool usage altogether, as reported by Tom’s Hardware.

Imagine this happening in your organization: an employee unknowingly shares client financials or medical records in ChatGPT to “get help summarizing” and suddenly sensitive data is compromised.

A Rising Danger: Prompt Injection Attacks

Hackers have developed a sophisticated method called prompt injection, embedding malicious commands within emails, transcripts, PDFs, or even YouTube captions. When AI tools process this content, they can be manipulated into revealing sensitive data or executing unauthorized actions.

In essence, the AI unknowingly becomes a tool for cybercriminals. Microsoft’s Security Blog has documented multiple real-world prompt injection attack vectors and recommends layered defenses for any organization deploying AI assistants.

Why Small Businesses Are Especially at Risk

Many small businesses lack oversight on AI usage. Employees often start using AI tools independently, assuming they function like enhanced search engines, unaware that pasted data might be permanently stored or accessible to others.

Additionally, most companies don’t have formal policies or training programs to guide safe AI use.

Take Action Today to Protect Your Business

You don’t have to eliminate AI from your operations, but you must establish control measures.

Start with these four essential steps:

1. Develop a clear AI usage policy.

Specify which AI tools are authorized, outline data sharing restrictions, and designate contacts for questions.

2. Train your team.

Educate employees on the risks of public AI platforms and how threats like prompt injection work.

3. Choose secure AI solutions.

Promote business-grade platforms such as Microsoft Copilot that provide enhanced data privacy and compliance controls.

4. Monitor AI activity.

Keep track of AI tool usage and consider restricting access to public AI sites on company devices.

Final Thoughts

AI is an indispensable asset for modern businesses, but only when used responsibly. Ignoring the risks can lead to data breaches, regulatory penalties, and severe damage to your reputation. Protect your company by implementing smart AI policies and training your team to use these tools safely.

Let’s discuss how to safeguard your business from AI-related risks. We’ll help you craft a robust, secure AI policy that protects your data without hindering productivity. Call us at 408-335-0353 or click here to schedule your Discovery Call today.

Frequently Asked Questions

How can my business ensure safe use of AI tools?

To ensure safe use of AI tools, start by developing a clear AI usage policy that outlines which tools are authorized and the types of data that can be shared. Additionally, provide training for your employees to help them understand the risks associated with using public AI platforms, as well as how to recognize potential threats like prompt injection.

What are the risks of using public AI platforms for sensitive information?

Using public AI platforms for sensitive information poses significant risks, as any data input may be stored or analyzed by the service provider, potentially leading to unauthorized access or leaks. For instance, confidential client information shared with an AI tool could inadvertently be used to train future models, exposing your business to security breaches.

What is a prompt injection attack and how can it affect my business?

A prompt injection attack occurs when hackers embed malicious commands within content that AI tools process, such as emails or documents. This can lead to sensitive data being revealed or unauthorized actions being executed, effectively turning the AI into a tool for cybercriminals and compromising your business’s security.

Small businesses often lack the oversight and formal policies needed to manage AI usage effectively. Employees may use AI tools independently, assuming they are safe, which increases the likelihood of sharing sensitive information without realizing the risks. Implementing guidelines and training can help mitigate these vulnerabilities.