Understanding Shadow AI Risk and How to Secure Your Business

Is AI good for productivity? Of course… but, like most things, there are two sides to consider. Since artificial intelligence is so good for productivity, many employees (perhaps even some of yours) are turning to public AI tools without authorization or oversight, exposing summarized meetings, written code, entire spreadsheets, and other proprietary and sensitive data to a public database.

In short, they’re using a specific form of shadow IT… shadow AI.

How One Data Leak Creates a Loop

The majority of free, public AI tools crowdsource their data. They use the data they receive to train their models as a means of improving their own performance. This is where a leak becomes a loop.

Let’s say ACME’s sales department wants to sort its existing customer base and prospects by the products these customers and prospects have expressed interest in. One enterprising team member decides to upload these customer lists into a public AI to have it speed up the sorting process. The trouble is, these lists include details like official company names, addresses, financial information, and the like. Some clients and prospects are sole proprietors, so much of their personal information is also included in these lists.

Since all this information was given to a public AI tool, it is all used to train the model to better predict and deliver upon what anyone asks of it. This now includes all the sensitive information entrusted to ACME, creating a massive, self-perpetuating loop of ongoing data breaches, as the sensitive details ACME provided are injected into responses for the entire user base… quite probably including ACME’s competitors, and definitely including unauthorized parties.

For just a moment, reread that scenario, but instead of ACME, use your business’ name. Is this a reality you ever want to deal with?

This is Where Private AI Environments Prove their Value

This risk is precisely why it is so important for businesses to shift from public tools to private AI environments. The difference between the two options is akin to the difference between a pavilion in a park and a locked room in a private building with secure access controls.

While the public versions of AI tools rely on other inputs to train them, private AI environments (like the enterprise versions Microsoft, ChatGPT, and others offer) are built with “no-training” clauses. All data these private AI tools process stays within the organization, never touching the public AI model. However, you still need to be careful about handing over sensitive or personally identifiable information (PII), especially that of your clients.

Businesses Need to Care About This Difference

Hopefully, it is now obvious that we are not opposed to using AI. In fact, we encourage it… so long as it is used securely and implemented safely. This is why every organization needs an AI Acceptable Use Policy.

The AI Acceptable Use Policy should clearly document which AI tools are approved for use with company data, which may be used for general research (without company data), and which are not approved for use.

We can help you create this policy and ensure your team has ready access to the approved, secure tools that will protect your intellectual property from the public.

Critical Education for Your Team

We cannot understate the importance of education and team awareness in your successful defense against data breaches.

Your team needs to be trained to remove any specific or sensitive details from the prompts they provide to any AI tool that is not explicitly and specifically approved to receive sensitive details or materials.

Any time a public AI is being used for a task, your team must specifically exclude all of the following information:

• Specific details, particularly those including personally identifiable information/PII
• Financial information, such as budget details, dollar amounts, and the like
• Internal codes, especially those related to custom applications, internal projects, and future plans
• Any proprietary data, trade secrets, or sensitive intelligence

Should a project require any of this data to be processed or analyzed, the IT department needs to provide a secure platform for team members to use, rather than free, public options.

Don’t Trade Security in Favor of AI

It doesn’t matter how productive AI allows you to be if the outcome is a data breach. Properly maintaining company privacy while still enjoying the benefits of artificial intelligence is impossible without the right blend of policy and tools.

If you’d like to have a conversation about developing such a policy or implementing a private AI environment that meets such a policy’s guidelines, reach out to Poweron Technology at (505) 899-4600.