THE BAD: AI & Data Security
Gekko Team
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Artificial Intelligence is everywhere. From writing emails and analysing spreadsheets to marketing content and customer support, AI tools promise speed, efficiency, and a competitive advantage. But there’s an uncomfortable downside many organisations are overlooking: Data Security!
AI can quietly become a data security nightmare.
As organisations adopt more AI tools, strong managed IT security controls become essential for maintaining visibility, governance, and data protection. In this post, we’ll explore the risks of fragmented AI usage, and why Microsoft Copilot stands out as a safer, more secure approach, especially if you’re already using M365.
The Hidden Risk of “AI Sprawl”
Many organisations now use a mix of AI tools:
- A platform for writing
- One for coding
- Another for research
- Yet another for data analysis
On the surface, this looks innovative, but the reality is AI sprawl, a situation where data is being shared across numerous third‑party platforms with little visibility or control of your data.
Each AI service typically requires you to:
- Upload prompts, documents, or datasets
- Agree to different terms of use
- Trust that your data won’t be stored, reused, or used for model training
The problem? Not all AI providers treat your data equally.
Where it can all go wrong…
When AI tools are used without proper data security oversight, organisations expose themselves to serious risks, including:
1. Data Leakage
Employees may unknowingly paste into AI tools that store or reuse that data beyond your control, things such as:
- Client information
- Financial data
- HR records
- Intellectual property
2. Regulatory and Compliance Breaches
For UK and EU businesses, many governing practices place strict obligations on how personal and sensitive data is processed. Using consumer‑grade AI tools can easily put organisations in non‑compliance. You might be at risk if you’re adhering to policies within frameworks such as:
- GDPR
- DPA 2018
- Industry‑specific compliance requirements
3. Loss of Intellectual Property
Some AI platforms reserve the right to use submitted data to improve their models. That means your business IP could be at risk if absorbed into someone else’s AI engine, for things such as:
- Internal processes
- Strategic plans
- Proprietary knowledge
4. Shadow IT and Lack of Governance
Without a formal AI policy in place, businesses often struggle to track AI usage, enforce controls, or manage organisational risk effectively.
- Track where data is going
- Audit usage
- Enforce controls
Why “Free” or Public AI Tools Are Often the Biggest Risk
Public AI tools are designed for convenience, not enterprise security. These tools typically:
- Operate outside your existing identity systems
- Bypass device and access controls
- Lack contractual guarantees around data residency or retention
This doesn’t mean these tools are “bad”, but they’re often wrong for business‑critical data or sensitive data.
Where Microsoft Copilot Changes the Conversation
For organisations considering secure AI adoption, a practical Microsoft Copilot guide can help teams understand how to deploy AI within Microsoft 365 securely. Microsoft Copilot takes a fundamentally different approach to AI and data security. Rather than sitting outside your environment, Copilot is built into Microsoft 365, working within the security, compliance and identity controls you already use.
Key Security Advantages of Microsoft Copilot: -
1. Your data remains your data
- Uses your Microsoft 365 data (emails, files, chats)
- Does not train large language models on your tenant data
- Honours existing permissions, you can’t see what you couldn’t already access
2. Enterprise‑Grade Security and Compliance
Copilot inherits your Microsoft 365’s security framework, including:
- Microsoft Entra ID (identity and access control)
- Data Loss Prevention (DLP)
- Sensitivity labels and information protection
- Audit logs and eDiscovery
This is critical for regulated industries and security‑conscious organisations.
3. Reduced AI Sprawl
By giving users powerful AI capabilities inside the tools, they already use (Outlook, Teams, Word, Excel), Copilot:
- Reduces the need for multiple third‑party AI tools
- Keeps data within a known, governed ecosystem
- Makes AI adoption easier to control and standardise
4. Clear Governance and Policy Control
IT and security teams can:
- Define who can use Copilot
- Apply policies consistently
- Monitor usage and risk
This transforms AI from a shadow IT risk into a managed service.
The Real Risk Isn’t AI, It’s Uncontrolled AI
AI itself isn’t the enemy. The danger lies in:
- Fragmented tools
- Poor data awareness
- Lack of governance
- “Quick wins” that ignore long‑term security impact
Businesses who rush into AI without a data security strategy may achieve short‑term productivity gains, only to pay for it later in loss of data, control of data, data breaches, or even reputational damage.
A Smarter Way Forward
Before adopting more AI tools, businesses should ask themselves:
- Where does our data go when AI is used?
- Who owns it?
- Who can access it?
- Is it compliant with our security and regulatory obligations?
For many organisations, Microsoft Copilot provides a safer, more responsible entry point into AI, one that balances innovation with control.
Final Thought
AI can unlock enormous value, but only when it’s built on a secure foundation. The future belongs not to the businesses that adopt the most AI tools, but to those that adopt AI wisely, securely, and strategically.
You can read our other blog posts relating to AI and CoPilot here: https://gekko.co.uk/blogs/
Alternatively, if you would like to discuss AI further, you can book a meeting with Kristian here: