Artificial intelligence is no longer cutting‑edge—it’s everyday business. From automated customer service tools to Microsoft Copilot and AI‑driven analytics, small businesses are using AI in ways that were unthinkable just a few years ago. But as fast as AI is advancing, cybercriminals are advancing even faster.

AI greatly expands what a small business can accomplish, but if it’s adopted without the proper safeguards, it can unintentionally create new security vulnerabilities, expose sensitive data, and even open the door to targeted attacks. Understanding these risks is the first step toward using AI confidently and responsibly.

AI Tools Are Powerful—But So Are Their Risks

Many businesses use AI to improve customer interactions, generate content, or automate repetitive tasks. However, these tools often require access to large amounts of data. And without clear internal guidelines, employees may unknowingly share sensitive or confidential information with AI systems.

Common risks include:

• Data Leakage – Employees may paste internal documents, customer data, or financial information into unsecured AI tools. Once shared, this data can be stored, used to train models, or inadvertently exposed—depending on the tool.
• AI‑Powered Phishing Scams – Attackers can now generate highly convincing emails, texts, and impersonations using AI. These messages look more professional and personalized than ever, making them much harder to spot.
• Insecure Integrations – AI tools often connect to your email, documents, customer records, and apps. Poorly configured integrations can create entry points for threats or expose private business data.
• Lack of Visibility and Oversight – In many small businesses, AI adoption grows organically—meaning employees experiment with tools before IT or leadership approves them. This “shadow AI” can create inconsistent policies and weak security practices.

How Small Businesses Can Protect Themselves

The good news: AI can absolutely be used safely. But it requires intentional planning and proper safeguards.

Here’s how to get started:

• Build a Clear AI Usage Policy – Define what tools employees can use, what types of data are allowed, and what is off‑limits. This prevents accidental oversharing.
• Use Business‑Grade AI Tools with Security Controls – Corporate AI platforms—such as Microsoft Copilot for Microsoft 365—offer enterprise‑level data protections, audit trails, and access controls that consumer tools simply don’t provide.
• Train Employees on Safe AI Practices – Your team should understand risks like phishing, data sharing, and impersonation scams. Awareness is your strongest defense.
• Protect Your Data with Proper Permissions – Ensure that sensitive files, folders, and systems are restricted to the people who truly need access—this limits what AI can accidentally reach.
• Evaluate AI Vendors Carefully – Before adopting any new tool, check how it handles data, what security standards it follows, and whether it integrates safely with your systems.

Use AI—But Use It Wisely

AI will continue to reshape how small businesses operate, and those who adopt it safely will gain a competitive advantage. By understanding the cybersecurity risks and putting the right controls in place, your business can take advantage of AI’s benefits without compromising security.