The Critical AI Security Mistake Organizations Are Making in 2025
- Lynira Tamiah
- Feb 19
- 3 min read
AI is changing the way we work, bringing both opportunities and risks. Many businesses worry about AI-powered cyberattacks, yet they often overlook the dangers of employees using AI tools without oversight. This gap in security could lead to serious consequences. Companies must take a proactive approach, balancing the benefits of AI with responsible oversight to ensure both innovation and security. The challenge is not just external threats but also internal misuses that can expose sensitive data. Leaders who fail to address these issues now may face significant disruptions in the future.
What is Shadow AI?
Employees are using AI tools like ChatGPT and Microsoft Copilot without IT approval. This is known as “Shadow AI.” Without proper oversight, employees may unknowingly input sensitive company data, putting information at risk. These AI tools are designed to assist with productivity but can become a liability when used carelessly. The rise of Shadow AI means businesses are losing control over how their data is handled, creating vulnerabilities that hackers or AI providers themselves could exploit. Ironically, while many leaders focus on external AI threats, they fail to see the risks created by unregulated AI use within their own teams. A recent study found that 31% of companies do not track employee AI usage (Fortinet, 2024).
Why Unregulated AI Use is a Security Concern
Ignoring AI use within a company can lead to serious issues:
Data Leaks: Employees may unknowingly share confidential company information, which could be stored or accessed by third parties. If data is processed or retained by an AI model, it could be used in ways that compromise business integrity.
Legal and Compliance Issues: AI tools might process customer data in ways that violate privacy laws like GDPR or HIPAA. Failing to track AI interactions could result in regulatory penalties, lawsuits, and reputational damage.
Intellectual Property Risks: AI-generated content could lead to copyright issues if used improperly. Employees may also accidentally expose proprietary information when using AI for assistance, potentially allowing competitors or the public to gain access to trade secrets.
AI Cyber Threats That Concern Business Leaders
In addition to internal risks, many business leaders worry about external AI-driven cyber threats, such as:
AI-enhanced phishing scams that create highly realistic fraudulent emails. Attackers can use AI to craft messages that mimic real company communications, making scams harder to detect.
AI-powered malware that quickly finds and exploits security weaknesses. With AI’s ability to analyze vulnerabilities at scale, cybercriminals can automate attacks faster and more efficiently than before.
Deepfake technology used to impersonate executives and commit fraud. AI-generated audio and video content can be manipulated to create fake meetings or fraudulent approvals, leading to financial and operational damage.
The Contradiction: Fearing AI Attacks While Ignoring Internal AI Risks
There’s a major disconnect—leaders fear AI-powered cyberattacks but ignore the risks their own employees create by using AI tools without guidelines. This contradiction makes businesses vulnerable from both inside and outside. Internal AI misuse increases the effectiveness of external threats, making it easier for attackers to access sensitive data. If companies don’t take action, they may be making it easier for cybercriminals to succeed.
The Solution: AI Governance is Key
To protect their businesses, leaders should:
Set clear AI policies to define appropriate and secure use. Employees need guidelines on what AI tools are acceptable, what data can be used, and how AI should be integrated into daily workflows.
Monitor AI usage to detect risks before they become threats. This includes tracking which AI applications are used and ensuring that they comply with security and privacy policies.
Train employees to use AI responsibly and protect company data. Education programs should highlight potential risks, best practices, and the consequences of mishandling AI-generated information.
Most companies already enforce security rules for email and cloud storage—AI should be no different. By taking action now, businesses can stay ahead of cyber threats and keep their data safe. AI is here to stay, and the time to put safeguards in place is now. The businesses that embrace AI responsibly will not only protect themselves but also gain a competitive advantage in the evolving digital landscape.
