Cyber insurance and data security: the hidden risks of AI

What is AI doing with your data?

Whether it is Deepseek, Claude or Sana or any of the other new platforms sweeping the world of work, it is easy to be wowed by AI and all the clever things it can do. But do you know what happens to the data you are feeding into it?

The answer is unsettling. AI has no boundaries in terms of how data is used or where it will end up. And with no limits in place, huge amounts of data are sent offshore and processed in data centres outside the UK.

In some cases, there is nothing in the way of security to stop bad actors gaining access to that data and potentially even using it to carry out cyber attacks.

Say your employee feeds a PowerPoint presentation into an AI agent and asks it to tidy it up for them. It seems an innocent enough instruction. But what if that presentation is filled with confidential data? There is no way of controlling where it gets processed and stored, or who might end up seeing it.

It is a sobering thought. And it is an issue even if you block AI agents in the office, as there is nothing to stop employees using AI platforms for work purposes on their personal laptops, which many will do if it means doing a better job or they are on a tight deadline.

Is your cyber risk insurance at risk?

Many businesses have cyber insurance these days, helping to mitigate the impact of cyber security breaches and attacks. But unsurprisingly, insurers are realising the security risks posed by AI and are growing wary of it. If you are worried that your AI use is putting your company's data and cyber cover at risk, help is at hand.

Steps to mitigate AI risks

We offer comprehensive support to help your organisation adopt AI securely and effectively. This includes auditing how your teams use AI, identifying unauthorised or unmanaged AI tools, planning enterprise-grade deployments, and delivering tailored staff training. Using Microsoft's Copilot Readiness Assessment, we will also help you implement robust controls aligned with your existing Microsoft 365 environment.

When configured correctly for business use, "Microsoft Copilot adheres to the same user authentication and encryption standards as your broader Microsoft 365 environment."

It also stores data within your organisation's own SharePoint site, ensuring full data sovereignty.