Artificial intelligence tools, such as ChatGPT, are changing not only how we work but also how we think about risk. These tools can boost productivity and spark creativity, but they’ve also created a new kind of cybersecurity concern.

Employees oversharing company data with ChatGPT and other generative AI (GenAI) tools is a bigger risk than many business owners realize. Let's explore why.

Giving “Shadow IT” a New Face

The concept of shadow IT isn’t new. It’s the practice of using apps, tools, or services that haven’t been approved (or even reviewed) by your company’s IT security team.

For example, personal Dropbox folders, WhatsApp chats about work projects, or random online file converters are all common and convenient. Still, they also open the door to data leakage and other security headaches.

GenAI tools, such as ChatGPT, are the latest iteration of shadow IT. According to new research from LayerX, employees frequently provide these platforms with sensitive data, including internal documents, client lists, and even personally identifiable information (PII) or payment card details (PCI).

The problem is that once a GenAI tool has that data, it’s effectively out of your control. Even if the platform claims to protect employee privacy, there’s still a risk that this information may be stored, accessed, or used in future AI training models.

The Quiet Risk of “Helpful” Oversharing

Most employees who overshare company data with ChatGPT aren’t acting maliciously. They’re just trying to get their work done more efficiently. Unfortunately, they may accidentally expose confidential information or upload files that were never meant to leave the company’s secure systems in the process.

This is where AI misuse can quickly snowball into a major issue. When sensitive data lands in the wrong hands, or even just outside your network, it can result in data leakage, compliance violations, or even breaches of client trust.

Even worse? AI makes it harder to trace where that data ends up.

How To Protect Your Business From AI-Driven Data Leaks

So, what can you do to keep your data safe while still embracing GenAI?

  • Educate your team: Make sure workers understand the risks of sharing company data with ChatGPT or any AI tool.
  • Create AI usage policies: Establish clear guidelines that outline what types of information can and cannot be shared with AI systems.
  • Use secure, enterprise-approved AI tools: Provide your team with business versions of AI tools that include enhanced privacy and data controls.
  • Monitor for shadow IT: Invest in monitoring tools that can detect when unapproved applications are being used within your network.
  • Encourage transparency: Create a culture where employees can ask before using a new tool rather than risking exposure.

Generative AI is powerful, but it’s not foolproof. As these tools continue to shape modern workflows, business owners must pay attention to how employees are using them. If you have employees oversharing company data with ChatGPT, your organization could be one upload away from a serious corporate security breach.

By setting clear boundaries and offering secure alternatives, you can help your employees work more effectively without compromising confidential information.

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