The AI Security Dilemma: What Every CEO Must Know to Protect Their Business

AI, Security

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Many CEOs remain hesitant to embrace AI in their company, but the truth is, we are already surrounded by it. As a cybersecurity firm, our top priority is always security—especially when it comes to using tools like AI. What most people don’t know is that AI has been around for over a decade. The difference now though is that from the apps we rely on daily to the systems running behind the scenes, AI has already become a core part of our digital experience. Here is a security dilemma for the CEO: should you trust the AI tools built into these applications? The answer might surprise you—and it’s often not what you’d expect.

Let’s break down the key concerns and steps you can take to protect your business.

 

Understanding AI Security Risks

As the CEO, you need to understand the AI security risks: when you use AI, your data doesn’t stay within your office walls. It’s sent to the servers of the company that owns the AI tool. Depending on their policies, this data could be stored indefinitely, used to improve their systems, or even shared with third parties.

This includes:

  • Active Input: Data you or your employees intentionally provide, such as prompts or commands.
  • Passive Input: Data generated from interactions with the AI, like usage patterns or preferences

 

“Red Flags” for the CEO to look out for when it comes to the use of AI in their company:

  1. Unclear Data Policies: Does the AI vendor explain what happens to your data?
  2. Unrestricted Employee Usage: Are employees using AI without guidelines?
  3. Built-In AI Tools: Are default tools in your business apps being used without review?
  4. Compliance Gaps: Are you meeting industry-specific data regulations?
  5. Vendor Trustworthiness: Is the AI provider certified for security?

 

Security dilemma: A real story from our client

I was meeting with one of our finance clients and we were discussing security. The topic of AI came up, so I asked the question – Has anyone here used the new built-in XXXX (name your app) AI? And a few people raised their hands. I then asked if they knew if that data was now a part of those AI systems and the response was from the CEO “We may have an NDA breach”.

Not a good place to be and since these AI systems are now a part of the application, you have limited control of them so it’s the Wild West out there.

 

Key Areas of Concern in Uncontrolled AI Use

External AI Risks:

  • Adversarial Attacks: Hackers manipulating AI to produce harmful or false results.
  • Third-Party Vulnerabilities: Weak security from external AI providers can become your problem.
  • Vendor Trust Issues: Not all AI vendors are transparent or reliable.

Internal Risks:

  • Employee Misuse: Sharing sensitive information with AI tools without realizing the risks.
  • Compliance Gaps: Violating data protection laws or industry regulations.
  • Lack of Governance: No clear policies or oversight for AI usage.

Business Impact:

  • Financial Costs: Data breaches or mismanagement can be expensive to fix.
  • Reputation Damage: Losing client trust can have long-term consequences.
  • Regulatory Penalties: Fines or legal action from non-compliance.

 

Security Dilemma: How to protect yourself from the AI risks

To stay ahead, you need a proactive strategy. Here’s how:

  • Create a Companywide AI Policy. You most likely will need to have all the employees sign that and add it to your annual cycle of policy and handbook reviews for everyone to sign each year.
  • Invest in AI Security Audits. Suggest periodic AI security audits to ensure compliance.
  • Research AI Vendors Thoroughly. Understand how each vendor handles data and assume it might be used unless explicitly stated otherwise.
  • Control Your AI Environment. Use enterprise-grade AI tools like OpenAI’s business solutions for added security. You can buy the company version and add layers of rights and where the data resides. This gives you control. You can incorporate your AI into different areas of your business and often connect it to your applications.
  • Educate Your Team: Train employees on safe AI practices, such as recognizing phishing attempts involving AI or avoiding unauthorized model usage.
  • Risk Management Frameworks: Introduce frameworks like NIST AI Risk Management. If that is too much for you go to the next point.

     

    Final Thoughts: The AI Security Resolution

    We understand that managing AI security can feel overwhelming.

    But think about AI the same way you think about email: never use it for sensitive or critical data unless you are confident in its security.

    The reality is, AI isn’t going anywhere. Its rapid advancement means businesses that fail to control their use risk falling behind—or worse, suffering an irreparable data breach. The good news? You don’t have to navigate this alone.

    At Waident, we specialize in helping businesses like yours take charge of AI security. Whether you’re just starting or need a full audit of your current systems, we’re here to help you embrace AI with confidence.

     

     

     

     

     

     

    John Ahlberg
    CEO, Waident

    CIO in the corporate world and now for Waident clients. John injects order and technology into business process to keep employees productive, enterprises running, and data safe.

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