You've just hired someone who never sleeps, works for free, and remembers everything.
But they also can't sign a Non-Disclosure Agreement, don't understand confidentiality, and share what they learn with anyone who asks.
That's AI without a security strategy.
If your business uses ChatGPT, Copilot, Gemini, or any of the dozens of AI tools now embedded in everyday software, this guide is for you. Not the technical version. The practical one.
AI Is Already in Your Business (You Just Haven't Onboarded It)
Here's something most business owners don't realise: you didn't adopt AI. Your team did.
Right now, someone in your company is pasting client notes into ChatGPT to write a faster email. Someone else is uploading a spreadsheet to get a quick summary. Your office manager is using an AI tool to draft a contract. Your accountant is asking it to explain a clause.
None of them asked permission. None of them read the privacy policy. And none of them meant any harm.
They're just trying to get through their day.
In 2023, Samsung engineers accidentally leaked source code and confidential meeting notes to ChatGPT, three times in 20 days. Samsung banned the tool and threatened termination. But here's what's scarier: a 2025 study found 77% of employees are still doing exactly this. And 67% are using personal accounts your IT team can't even see.
So the question isn't "should we use AI?", you already are.
The question is: do you control it, or does it control your data?
The 3 Questions Framework
Before you let any AI tool near your business data, ask three things:
1. What Can It See?
Every time someone types into an AI tool, they're handing over data. The AI doesn't distinguish between a casual question and a confidential client file. It just processes whatever it's given.
Think of it like this: you've hired a temp worker and handed them the keys to every filing cabinet in your office. They're helpful, but they don't know what's sensitive and what isn't. They'll open anything.
The risk: If an employee pastes client details, financial figures, or internal strategy into an AI tool, that information has now left your business. You don't control where it goes next.
What to ask:
- What data are my team actually putting into AI tools?
- Is any of it confidential, client-related, or commercially sensitive?
- Would I be comfortable if this information appeared in a competitor's inbox?
2. Where Does It Go?
Not all AI tools are built the same. Some store your data. Some use it to train future models. Some send it to servers in other countries.
Here's a simple way to think about it:
| Tool Type | What Happens to Your Data |
|---|---|
| Free public AI (e.g. free ChatGPT) | Stored, potentially used for training, visible to provider |
| Enterprise AI (e.g. ChatGPT Enterprise, Microsoft 365 Copilot) | Typically not used for training, kept within your tenant |
| Zero-retention AI | Data processed but not stored, deleted immediately |
Most businesses assume they're using the safe version. Most aren't.
The risk: Free tools are designed to learn from you. That's the trade-off. If you're pasting sensitive data into a free AI chatbot, you're essentially donating it to the model's training set.
What to ask:
- Which version of this AI tool are we actually using?
- Does it store inputs? For how long?
- Is our data used to improve the model, and can we opt out?
3. Who Else Gets It?
Here's where it gets uncomfortable.
Some AI tools share data with third parties, advertising partners, analytics providers, or parent companies. Others are built on open-source models where the boundaries are blurry. And some route your data through servers in jurisdictions with very different privacy laws.
For UK businesses, this matters. GDPR requires you to know where personal data goes, who processes it, and on what legal basis. "We use ChatGPT" isn't a compliance strategy.
The risk: If client data ends up in a training set, a third-party system, or a server outside the UK, and you didn't have proper consent or safeguards, you could be liable under GDPR.
What to ask:
- Who owns this AI tool, and where are they based?
- Does their privacy policy allow data sharing with third parties?
- If this tool processes client data, do I have the right contractual protections in place?
The 3 Biggest AI Security Risks for London SMBs in 2026
If you're running a small or medium-sized business in London, these are the three risks that should be on your radar right now.
1. What Happens When Employees Paste Client Data Into ChatGPT?
This is the most common risk, and the hardest to spot.
Your team isn't trying to leak data. They're trying to work faster. But every time they paste client information into a free AI tool, upload a document to a transcription service, or ask a chatbot to summarise a contract, data leaves your control.
How it happens:
- Personal Assistants uploads a board meeting recording to an AI transcription tool
- Human Resources pastes employee details into ChatGPT to draft a letter
- Sales rep asks AI to write a proposal using client-specific information
The fix: Create clear guidelines on what can and can't be shared with AI tools. Make it simple, if it contains names, numbers, or anything confidential, don't paste it.
2. Could AI Land You in Trouble With Regulators?
GDPR doesn't have a carve-out for "we didn't know the AI was storing data."
If your business processes personal data, and almost every business does, you need to understand how AI tools fit into your compliance obligations. That means knowing what data is being processed, where it's going, and whether you have a lawful basis for that processing.
Most small businesses haven't updated their privacy policies, data processing agreements, or staff training to account for AI. That's a gap regulators are starting to notice.
The fix: Treat AI tools like any other data processor. Review their terms. Update your policies. Train your team.
3. Does a Big Brand Name Mean Your Data Is Protected?
"It's Microsoft, so it must be safe."
Not quite.
Enterprise tools from big vendors often are more secure, but only if they're configured correctly. Microsoft 365 Copilot, for example, will surface information based on your existing permissions. If your internal permissions are a mess, Copilot will happily show the wrong people the wrong files.
And that's before we talk about third-party plugins, browser extensions, and the dozens of "AI-powered" add-ons your team might be installing without oversight.
The fix: Don't assume the brand name equals security. Ask what's actually happening under the hood, and make sure your internal permissions are locked down before you layer AI on top.
How to "Onboard" AI Like a New Employee
Here's a mental model that makes AI security simple: treat AI like a new hire.
You wouldn't give a new employee access to every system on day one. You'd check their background, define their role, limit their access, supervise their work, and have a clear process if things go wrong.
Do the same with AI.
| Step | What You'd Do for a Human | What to Do for AI |
|---|---|---|
| Background check | Verify references, run checks | Vet the vendor's data policy and security certifications |
| Define access | Limit system access to what's needed | Decide what data AI can and can't touch |
| Training | Explain company policies | Configure settings, opt out of training where possible |
| Supervision | Manager oversight, regular check-ins | Monitor usage, review what's being shared |
| Exit process | Revoke access, retrieve equipment | Know how to delete data and revoke tool access |
If you wouldn't trust a temp worker with unrestricted access to your client files, don't trust an AI tool with it either.
A Simple AI Security Checklist
Use this to assess where your business stands today.
- We know which AI tools our staff are using (including personal accounts)
- We've read the data and privacy policies for those tools
- Sensitive data (client info, financials, IP) is excluded from AI inputs
- We have a written AI usage policy for staff
- We've updated our privacy policy to reflect AI tool usage
- We review AI tool usage and permissions at least quarterly
If you ticked fewer than three, you're not behind. You're normal. Most businesses haven't started yet.
But now's the time.
What "Good" Looks Like
Let's say you run a 25-person professional services firm in London. Here's what AI security looks like when it's done well:
Policy: You've written a one-page AI usage policy. It lists approved tools, banned tools, and clear rules on what data can never be shared with AI.
Training: Every new starter gets a 15-minute briefing on AI dos and don'ts. Existing staff got a refresher last quarter.
Tools: You've moved from free ChatGPT to a business-tier plan with data protection controls. Your IT provider helped configure it properly.
Review: Once a quarter, someone checks what AI tools are being used and whether the policy is being followed. Adjustments are made as new tools emerge.
Culture: Staff feel comfortable asking, "is this okay to paste?" rather than guessing. No one's been shamed for using AI, they've been guided on using it safely.
That's it. No massive budget. No full-time security hire. Just clear thinking and consistent habits.
The Bottom Line
AI isn't going away, and it shouldn't. Used well, it's a genuine competitive advantage. Used carelessly, it's a liability.
The difference isn't whether you use AI. It's whether you've thought about it.
Three questions. One policy. A conversation with your team.
That's where good AI security starts.
If you're looking to implement AI safely in your business, Blue Icon can help you develop clear policies, configure enterprise AI tools securely, and train your team on safe AI usage. We work with professional services firms across London to build technology foundations that support growth while protecting sensitive data. Get in touch to discuss your AI security strategy.
Related reading: Most companies aren't training staff on AI and Data Sovereignty in the UK. For comprehensive protection, explore our cybersecurity services.
