How AI Could Cause a Data Breach and Compromise Confidential Company Data

How AI Could Cause a Data Breach & Compromise Company Data

Artificial Intelligence (AI) has become an invaluable asset for businesses to enhance efficiency and enable innovation. However, alongside its benefits, AI also presents significant risks, particularly concerning data breaches and the compromise of confidential company data. Understanding these risks is crucial for businesses to safeguard their sensitive information.

AI and company data #1: Sensitive Company Data

AI platforms like ChatGPT can inadvertently expose sensitive company data if not properly managed. If an AI system stores input data for training purposes, any information entered could potentially be used to train the AI, which may then surface in responses to other users. A notable example is Samsung, where sensitive company code was shared via ChatGPT, leading to a security leak. Consequently, many companies, including Apple, have restricted AI chatbot usage in certain departments to prevent such breaches. Employees must be cautious and avoid sharing proprietary or confidential information on AI platforms to prevent unintended exposure.

#2: Intellectual Property

AI systems can compromise intellectual property (IP) by utilizing and potentially redistributing proprietary information. For instance, using AI to review or edit creative works can result in these works being included in the AI’s training data, making them accessible to others. Legal battles, such as those involving authors like Sarah Silverman and George R. R. Martin, highlight the risks of AI models trained on copyrighted material without permission. To protect IP, avoid sharing original ideas, designs, or creative works with AI tools unless you are comfortable with potential public exposure.

#3: Financial Information

Entering financial data into AI platforms is a significant risk. Just as one wouldn’t share banking details on a public forum, providing such information to an AI system could result in data breaches. Financial information stored or processed by AI could be vulnerable to cyberattacks, leading to identity theft or financial fraud. Businesses should educate employees on the importance of keeping financial details secure and using AI tools only for general advice without revealing sensitive financial data.

#4: Personal Data

AI systems can inadvertently collect and expose personal data, which can be exploited for identity theft or impersonation. Details like names, addresses, and contact information should never be shared with AI platforms. Even seemingly harmless information can be pieced together by malicious actors to gain unauthorized access to accounts or perpetrate scams. Companies must enforce strict policies to prevent the sharing of personal data on AI systems.

#5: Usernames and Passwords

Sharing usernames and passwords with AI tools can lead to serious security breaches. Passwords should only be stored in secure, encrypted systems and never be entered into AI platforms. AI systems are not designed to manage sensitive authentication details securely, making them vulnerable targets for hackers. Using password managers and regularly updating passwords can help mitigate these risks.

AI Security Vulnerabilities #6: AI Interactions

Even interactions with AI can be problematic. Bugs and vulnerabilities in AI platforms can lead to unintended data exposure, as seen with instances where users’ chat histories were accidentally shared with others. To prevent such breaches, businesses should adopt AI tools that offer robust privacy and security features and regularly review and update their AI usage policies.

Let’s Talk About AI Cybersecurity!

While AI offers numerous benefits, it also presents significant risks to data security. Businesses must implement stringent security measures, educate employees on safe AI usage, and continuously monitor AI interactions to prevent data breaches. By understanding and addressing these risks, companies can harness AI’s potential without compromising their sensitive information. Book a meeting below to discuss securing your business against AI.


Phillip Long, CEO of BIS - Managed IT Services Provider

Phillip Long – CISSP, CEO of , along with his team of marketing and information technology experts, will walk you through an overview of what your business should be doing to protect your data and plan your digital marketing strategies.

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Phone: 251-405-2555