If the first two months of the year are any indication of the rest of 2025, we are at the cusp of the Artificial Intelligence (AI) takeover. AI has rapidly become a driving force in business, revolutionizing industries by enhancing efficiency, streamlining operations, and offering data-driven decision-making. However, as with any powerful tool, AI also presents a set of risks that businesses must navigate carefully. Without the proper safeguards, organizations can expose themselves to data breaches, regulatory violations, and reputational damage. This is where a robust IT security strategy is essential.
The Growing Risks of AI in Business
AI presents both opportunities and challenges. While it can automate processes and detect patterns that humans might miss, it also introduces new risks that companies must mitigate. Some of the key threats include:
- Data Breaches and Privacy Concerns
AI systems rely on vast amounts of data to function effectively. If not secured properly, sensitive information—such as customer records, financial details, or proprietary business insights—can be exposed to hackers. A single breach can result in financial losses and erode customer trust. Consider the utility of AI: Just as you can use it in your business to improve processes, bad actors can also use AI to improve their processes. Your systems need to be on their highest alert.
- Cybersecurity Vulnerabilities
AI-powered automation can be exploited by cybercriminals if not properly protected. Attackers may use AI to launch sophisticated phishing scams, deepfake frauds, or automated hacking attempts. As AI becomes more integrated into business operations, the need for stronger cybersecurity defenses grows.
- Bias and Compliance Issues
AI models can inadvertently reflect biases present in training data, leading to discriminatory outcomes that can result in regulatory penalties or lawsuits. Businesses must ensure their AI systems adhere to ethical and legal standards, which often require continuous monitoring and adjustments. AI will impact administrative controls such as Acceptable Use or Mobile Device policies. Many businesses do not understand that AI can be considered fair game for lawsuits, data retention policies, eDiscovery, and insurance claims. AI platforms should be governed and controlled much like email and file systems.
- AI-Powered Fraud
Criminals are leveraging AI to commit fraud at an unprecedented scale. From AI-generated phishing emails to automated financial fraud, businesses must be prepared to defend against threats that are becoming more sophisticated by the day. Social engineering will be particularly damaging. Consider a scenario in which a bad actor can create a video of anybody doing anything and then extort the target!
- Operational Risks and AI Malfunctions
AI-driven automation can fail if models are not trained or updated correctly. Incorrect predictions, data errors, or AI system malfunctions can disrupt operations, causing downtime and financial setbacks. Businesses must ensure their AI is reliable and monitored for performance and accuracy. Much like technical and security controls, having the right people with the right skillset, knowledge, and experience is crucial in maximizing effectiveness and security of AI platforms.
Does Your Business Face These Risks?
If any of these concerns sound familiar, your business may be at risk. Are you handling large volumes of sensitive customer data? Do you rely on AI for automation, decision-making, or fraud detection? Have you experienced cybersecurity threats or compliance challenges in the past?
If you answered yes to any of these questions, it may be the perfect time to consider an IT risk assessment. Our introductory assessment provides valuable insights into the real risks facing your business, helping you take informed steps to protect it.
If you are interested in learning how ATA can help manage your AI risk, schedule a consultation with me.
By Jon Joyner, IT Advisory Services Leader, ATA