data security

AI Data Security: How to Stay Safe Using AI Tools

Over 90% of users don’t understand the privacy risks of using AI at work. With more than half of small businesses now using generative AI, you can probably see why this is a big deal—yet nearly half of all employees don’t grasp the dangers of unmonitored use.

While these tools are great, sharing your company secrets, client lists, or financial info can compromise your data security. So, how do you stay protected without shunning these incredibly useful tools? In this post, we’re breaking down the risks of improper data security and how best to protect your company’s information while using AI safely.

What’s the Problem with AI and Data? 

AI tools may be convenient, but like IoT devices before them, they weren’t designed with data security in mind. Without proper oversight, these tools could introduce serious security gaps into your business.

What does AI do with data?

Information you give to an AI can “stick around” in the system long after your session ends. Depending on the platform:

  • Some data may be stored to help respond to future requests.
  • Some data may be used to improve the AI’s performance.
  • Some conversations may be reviewed for quality, training, or safety purposes.

You should never enter sensitive business, customer, or financial data into an AI model unless the tool explicitly guarantees data security, privacy, and compliance.

What are the Risks?

If you aren’t careful with how your data security is handled, you risk:

  • Data Breaches: Any stored data could be exposed if the platform is compromised.
  • Insider Threats: Employees could misuse AI tools to steal information.
  • Data Misuse: Without proper controls, data entered into AI could be used in ways you didn’t intend, potentially violating privacy laws.
  • Data Poisoning: Malicious actors can intentionally feed “bad” data into AI systems, causing incorrect or harmful outputs for your business.
  • Shadow AI: When an employee uses AI without oversight or guidelines. For instance, at Samsung, an employee accidentally shared sensitive code with ChatGPT, which led to a company-wide ban and the eventual development of their own internal AI. A proper AI policy can curb the risks of shadow AI.

AI and the Law

New AI data security regulations are being created to keep pace with the rise of AI. While still far from comprehensive, these are some key frameworks and regulations that help protect data in the age of AI.

(GDPR) General Data Protection Regulations:

This European law protects personal data. It requires AI Systems to be transparent about how data is used, collect only necessary data, and obtain proper consent. Even U.S. companies must follow these data security rules if they handle data from people in the EU.

CCPA (California Consumer Privacy Act)

This gives California residents more control over their personal information. They can see what data a company has about them, ask for it to be deleted, or opt out of sharing it. It applies to many companies that do business in California, even if they’re based somewhere else.

NIST AI Risk Management Framework (AI RMF)

The U.S. government’s NIST agency created this “AI safety playbook” to help companies use AI safely and responsibly. It covers things like security, fairness, and privacy. While voluntary, it’s the gold standard for checking how safely you and your vendors handle AI.

Vendor Audit Checklist

Before rolling out a new AI tool to your team, check these three key items:

  1. Is this the “free” or “paid” version?
    Free AI tools often use “pay” for themselves by using your data to train their models. Paid business versions typically keep your data private within your company.
  2. Can you opt out of training?
    Make sure your ideas or client lists aren’t being used to “teach” the AI how to help your competitors.
  3. Is it properly secured?
    Look for security certificates like SOC2 Type II or other mentions of compliance regulations. If the company can’t provide certification, reconsider sharing your data.

How to Use AI Tools Safely at Work

With the risks and compliance out of the way, here are some best practices to keep your data security top-notch.

  • Control Access
    Clearly define who is authorized to use AI.
  • Set Clear Ground Rules
    Decide what types of tasks are AI-approved (e.g., drafting emails vs analyzing financial spreadsheets).
  • Train Your Team
    Teach your team what should and shouldn’t be shared with your AI tools.
  • Use Business-Grade AI
    Stick to approved, monitored tools that offer the best data security.
  • Anonymize Your Data
    Use pseudonyms or placeholders (like “Client A”) instead of real names or numbers.
  • Turn off Model Training
    Disable this feature to prevent company data from being stored.

    • How to Opt-Out in ChatGPT:
      1. Click your name/profile in the bottom left → Settings.
      2. Go to Data Controls.
      3. Toggle off “improve the model for everyone.”
  • Adopt “Zero-Trust” Security
    This security model requires verification for every user and device that connects to your network, and stop a small slip-up from turning into a full-blown breach.
  • Keep Tools Updated
    Regularly update your AI software to patch security vulnerabilities.
  • Create a Formal AI policy
    Put all of these practices into one clear document for the whole company.

Protect Your Data, Use AI

AI can be a seriously great addition to your company—if you use proper data security. Through a solid AI policy, the right settings, and team training, you can keep risks to a minimum.

We know this can feel overwhelming. That’s where a trusted partner like The 20 MSP comes in. Our team is at the forefront of the AI boom, helping businesses adopt these tools safely and confidently.

If that sounds like something you’d be interested in, let’s talk!

Want more tips like this?

Subscribe using the form on the right and get our latest insights delivered straight to your inbox.

About The 20 MSP

As a leading provider of managed IT services, The 20 MSP serves thousands of businesses nationwide, including single and multi-location organizations, delivering white-glove service, secure and streamlined IT infrastructure, and 24/7/365 support. We believe in building lasting relationships with clients founded on trust, communication, and the delivery of high-value services for a fair and predictable price. Our clients’ success is our success, and we are committed to helping each and every organization we serve leverage technology to secure a competitive advantage and achieve new growth.