Top 7 Artificial Intelligence Security Risks for Businesses

May 20, 2025

artificial intelligence security risks

If you're running a small to mid-sized business in Oregon, you're probably already using or considering the use of AI to stay ahead—automating tasks, improving customer service, or gaining smarter insights from large amounts of data. And while these advancements are powerful, they also come with new security risks that most business owners haven’t fully accounted for.

AI is already embedded in many of the tools your business relies on—from email filters to cybersecurity solutions to applications of AI in accounting, HR, and even recruitment. But as more AI technologies enter your infrastructure, so do more potential threats.

You’re not just looking at generic cybersecurity concerns anymore. These are evolving AI security risks that can hit where it hurts most—your data, your reputation, your revenue. And here’s the uncomfortable truth: traditional security measures won’t cut it.

To protect your business, your clients, and your peace of mind, you need to understand the risks associated with AI and how to take a risk management approach that’s aligned with today’s digital threats.

Let’s break down the biggest artificial intelligence security risks businesses face—and how to reduce the risk before it becomes a costly mistake.

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Business owner reviewing artificial intelligence security risks report on a tablet

Risk #1 Data privacy breaches through AI systems

The more you use AI, the more data you feed it—and not just any data, but often sensitive information like customer profiles, financial details, or internal communications. This makes your AI systems a goldmine for threat actors.

Unlike traditional software, AI algorithms are trained on vast training data sets. If not properly secured, that data can be leaked, misused, or stolen. Worse, generative AI tools may unintentionally expose this information in outputs, especially if AI developers haven’t embedded strict privacy and security protocols.

This is where artificial intelligence risk management matters. Businesses need to treat AI privacy with the same rigor as data security and compliance, ensuring that AI use doesn't create backdoors into your systems.

At the core, AI security means protecting not just your technology, but the trust your customers place in you. And in today's climate, a single breach could unravel years of reputation.

If your business handles large amounts of data, it's critical to ensure your AI is developed with safeguards in place. The smarter your tools get, the more protection they require.

Risk #2 Adversarial attacks on AI models

Your business might rely on AI systems to streamline operations or make fast decisions, but what happens when those systems are tricked?

Adversarial attacks are a growing security threat where cybercriminals manipulate inputs to fool your AI models. These aren't obvious hacks—they’re subtle tweaks designed to confuse the system. A simple image, phrase, or data string can cause an AI algorithm to make the wrong call, which could disrupt your services or open the door to deeper intrusions.

This is especially risky in sectors like finance, engineering, or recruitment, where AI outputs guide real decisions. An attacker could influence who you hire, what your system flags as fraud, or even how your pricing tools react to competition—all without triggering alerts in your traditional cybersecurity setup.

To avoid this, your business needs security measures that include AI risk management strategies. That means testing your models for vulnerabilities, monitoring for unusual behaviors, and reinforcing your endpoint security.

Don’t wait until the damage is done. The time to harden your AI system against these invisible threats is before it’s deployed, not after it’s exploited.

Cybersecurity professional managing AI system alerts in a control room

Risk #3 Bias and decision-making vulnerabilities

When you use AI to automate hiring, client screening, or customer service, you’re trusting it to make fair decisions. But what if those decisions are already flawed?

AI systems often reflect the biases hidden in their training data, whether it’s age, gender, ethnicity, or socioeconomic status. This means the outcomes of your AI model might unintentionally discriminate or misjudge situations, leading to compliance issues, reputational harm, or even legal trouble.

And it’s not just about ethics—it’s about risk management. Biased AI decisions can alienate clients, cause internal conflict, or result in missed business opportunities. This becomes an especially serious security risk when AI is used in fraud detection or security clearance processes, where biased AI could either flag the wrong person or ignore a real threat.

Understanding the characteristics of AI and how it learns is critical here. Incorporating explainable AI into your tools helps your team audit decisions and improve accountability. It’s not enough to automate—you need to ensure your systems align with your company’s values and regulatory standards.

Remember, AI can create efficiencies, but it can also magnify blind spots. The best protection isn’t just code—it’s clarity, oversight, and human sense-checking at every level.

Risk #4 Dependency on insecure third-party AI tools

From chatbots to automated scheduling, businesses increasingly use generative AI and plug-and-play tools to save time. But here’s the problem: not all AI products are built with your security and privacy in mind.

Many AI tools—especially free or low-cost ones—don’t offer transparency about how they store, process, or share your data. When you integrate these into your workflow, you may unknowingly expose sensitive information to cyber threats or foreign servers with weak security systems.

Even more concerning, these tools often bypass your IT department entirely. Your team might download a browser extension or start using a new AI chatbot without realizing it’s a cybersecurity liability. And since these tools operate outside your primary security information and event management systems, any breach could go undetected.

The solution? Build a solid artificial intelligence asset management strategy. Know which types of AI your business relies on, evaluate the risks associated with AI, and vet every third-party tool before use. Not all innovation is worth the exposure.

Your business depends on trust. Don’t trade it for convenience.

IT team discussing risk management strategy for generative AI tools

Risk #5 Intellectual property and model theft

One of the biggest risks of AI adoption? The very models and data your team has spent months refining could be stolen or replicated in minutes.

If you’ve trained a custom AI model to streamline operations, manage customer insights, or support internal processes, that tool is now a valuable business asset. And like any asset, it’s vulnerable. Without strong application security and access controls, competitors or threat actors can extract, duplicate, or reverse-engineer your proprietary AI algorithms.

The rise of generative AI also introduces new risks, where your own data, outputs, or ideas could unintentionally feed back into public models, blurring the line between internal IP and public content.

This is where artificial intelligence asset management becomes essential. Treat your AI not just as a tool, but as part of your IP portfolio. Encrypt access, limit exposure, and ensure your cloud environments are secured with zero-trust security principles.

Protecting your business means more than defending data. It means defending what makes you different—and making sure your AI development doesn’t become someone else’s shortcut.

Final thoughts

As AI technologies continue to reshape how businesses operate, it's easy to get caught up in the possibilities and overlook the very real security challenges that come with them. But here’s the truth: AI automation doesn’t just accelerate productivity—it also accelerates exposure.

From cyber attacks to data privacy and security failures, the risks specific to artificial intelligence aren’t hypothetical. They’re already here. And while AI has the potential to transform your business, it can just as easily disrupt it, if not guided with the right security measures and oversight.

By understanding the artificial intelligence security risks and benefits, investing in artificial intelligence risk management, and proactively managing your AI assets, you’re not just reacting to threats. You’re leading with resilience.

And you don’t have to navigate it alone.

For over 20 years, AlwaysOnIT has helped Oregon businesses strengthen their systems, secure their operations, and adopt emerging tech the smart way. Whether you’re experimenting with AI capabilities or already integrating AI into your workflows, our team offers tailored, proactive support that puts your business first.

Let’s make your technology as strong as your vision.

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Frequently asked questions

What are the biggest security risks when businesses use AI?

When businesses use AI, they open themselves up to a range of security risks, from data privacy leaks to adversarial attacks. Many of these threats stem from poor configurations, unvetted AI tools, and a lack of oversight over how AI is developed or trained. Businesses must be proactive in identifying potential risks before they become serious problems.

How does artificial intelligence impact cybersecurity?

Artificial intelligence can strengthen your cybersecurity strategy—but it also introduces new vulnerabilities. For example, machine learning models used in threat detection can be manipulated with bad data, while generative AI may unintentionally reveal confidential information. Understanding the risks of AI in cybersecurity helps your security teams take action early.

What are the privacy and security concerns associated with AI?

Many AI systems collect and process sensitive data, yet not all providers ensure compliance with data privacy and security standards. Businesses should be cautious of how their AI is developed and whether proper guardrails exist to protect user data. Prioritizing responsible AI practices and tight application security is key to maintaining customer trust.

Can AI replace human intelligence in cybersecurity?

No. While AI may enhance detection and automate some tasks, it cannot replace the critical thinking and adaptability of human intelligence. In fact, overreliance on AI can be a security risk in itself. The best approach combines human insight with AI capabilities to create a layered, effective defense.

What are the risks of using generative AI in business?

The use of generative AI can lead to accidental leaks of proprietary information, plagiarism issues, and compliance risks. When used by AI without oversight, content and decisions can reflect AI bias, creating reputational or legal challenges. Businesses must align their use of these tools with a broader risk management and cybersecurity strategy.

How can businesses improve AI security and reduce cyber security risks?

Start by creating a dedicated AI risk plan that includes threat hunting, regular audits, and clear usage policies. Partner with security professionals who understand how to secure AI systems, especially those built with artificial general intelligence in mind. Investing in standard cyber security practices while utilizing AI for detection can dramatically improve security and strengthen your overall security posture.