Generative AI is transforming how businesses work. Teams are using it to draft emails, summarise meetings, generate content, and even write code. But if you’re responsible for IT, security or compliance, you already know the trade-off: more productivity can also mean more risk.

So, how do you safely adopt AI without creating security or compliance issues? Here are five practical steps to manage generative AI security risks for businesses.

1. What data is safe to use in AI tools?

Before your team starts using AI tools, you need clear data governance policies. Not all data should be entered into AI systems, especially public ones.

Avoid inputting:

  • Client or customer data
  • Business-sensitive information
  • Passwords or credentials
  • Strategic or confidential plans

Instead, define what is acceptable and ensure everyone understands it.

A safer approach is to use AI tools that integrate with your internal systems, so data stays within your control. Consider adopting a tool such as Microsoft Copilot that can integrate with your systems seamlessly to create a secure, information-generation workspace. 

2. Should businesses use enterprise AI tools instead of public ones?

Yes, enterprise AI tools are designed with security in mind, unlike many consumer platforms.

They typically include:

  • Data encryption
  • Access controls
  • Audit logs
  • Compliance support

If you’re already using Microsoft 365, enterprise AI tools are often built into your existing environment, meaning you can:

  • Apply existing security policies
  • Control data access
  • Maintain compliance standards

If your organisation uses Microsoft 365, you’ve got Microsoft 365 Copilot built right into that ecosystem with familiar security guardrails. For heavily regulated industries like healthcare, finance or legal services, this is often the difference between compliant and not. 

Plus, if you’re already paying for Microsoft 365 licenses, you may already have access to Microsoft Purview which works alongside AI to implement data sensitivity policies to stop people surfacing the information they shouldn’t and keep the outputs compliant with your security policies. With use of enterprise-grade AI, the output is purely defined by what you choose to input, making Purview a vital step in your approach to managing generative AI security risks.

Want to find out how to get more value from your existing M365 licenses? From simplifying licensing to avoiding common setup and adoption pitfalls, our webinar will leave you with practical ways to get more value from what you’re already paying for.

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3. Do you still need to review AI-generated content?

Absolutely. AI can produce content quickly, but it can also be confidently wrong…

That means:

  • Outputs may contain inaccuracies
  • Information can be fabricated (“hallucinated”)
  • Content may not meet regulatory requirements

Best practice? Build a human review step into every workflow involving AI. Make sure outputs are factually correct, align with your brand and messaging, and meet compliance and regulatory standards.

4. How do you train employees to use AI safely?

Technology alone isn’t enough: your team needs clear guidance and, without training, employees may unknowingly introduce risks.

Focus on simple, practical rules:

  • Don’t paste sensitive data into AI tools
  • Don’t share client information
  • Don’t assume AI outputs are always correct

Make AI security part of your company culture, not just an IT policy. When employees understand why it matters, they’re more likely to follow best practices.

5. How can you monitor AI usage across your business?

You need to know where AI is actually being used in your organisation. This sounds simple, but sometimes it’s not. One employee could be using it for a client proposal, whereas another could be using it for internal documentation and suddenly you’ve got AI-generated content everywhere with no visibility. 

If you’re already using Microsoft 365, you already have access to tools that can make this easier. Copilot includes audit logs that tracks where AI is being used so you can see which teams are relying on AI features and spot patterns and compliance violations quickly. 

Beyond this, you can use SharePoint and OneDrive retention policies to automatically flag or archive AI-generated documents, and Microsoft Purview will allow you to set up alerts for specific AI usage patterns.  

The benefit here is that you’re not bolting on another third-party tool to track things, you’re using what you already have and pay for.  

Final thoughts 

Generative AI is genuinely useful. It saves time, handles repetitive work and people enjoy using it, but it’s not a free pass to ignore security and compliance. When it comes to managing generative AI security risks for businesses, your organisation needs proper policies, to pick the right tools, to train your end users and to pay attention to what comes out the other end.  

The organisations winning at this aren’t the ones using the most cutting-edge AI. They’re the ones who figured out how to make it an asset and not a liability.