Artificial Intelligence (AI) tools like Microsoft Copilot and ChatGPT are transforming how small businesses work. From drafting emails to analysing data, AI can save time, improve efficiency, and reduce costs. However, as with any new technology, businesses must also consider the cybersecurity risks before rolling it out across their teams.
Below we explore the key security considerations for small businesses when adopting AI tools, and how to use them safely.
1. Data Privacy and Confidentiality
One of the biggest risks of using AI tools is what happens to the data you input. If staff copy and paste sensitive client information, financial data, or intellectual property into ChatGPT or Copilot, there’s a risk that information could be stored, processed externally, or exposed.
Tip for small businesses:
- Train staff not to input confidential or personal data into public AI platforms unless you have a clear data processing agreement.
- Use enterprise versions (such as Microsoft Copilot for Microsoft 365) that include compliance controls, encryption, and data governance.
2. Compliance with Regulations (GDPR and Beyond)
Small businesses in the UK and EU must consider GDPR obligations when using AI. Sending personal data to an AI service hosted outside the UK/EU could potentially breach data transfer rules.
Tip for small businesses:
- Check whether the AI service is GDPR-compliant.
- Review the provider’s privacy policy and Data Processing Addendum (DPA).
- Keep an internal record of what tools are being used and for what purpose.
3. Accuracy and “Hallucinations”
AI tools can generate convincing but factually incorrect information. If staff rely on AI without verifying results, it could lead to mistakes in client communications, contracts, or financial reporting.
Tip for small businesses:
- Treat AI outputs as drafts, not final answers.
- Build a review process where a human validates all AI-generated work.
4. Security of Integrations
Microsoft Copilot integrates directly with services like Outlook, Teams, and OneDrive. While this can be powerful, it also raises security questions: does the AI have access to sensitive company files or emails?
Tip for small businesses:
- Limit AI access to “least privilege” — only allow it to read and process the data that’s necessary.
- Regularly review permissions within Microsoft 365.
5. Staff Training and Awareness
AI tools are easy to use, but without guidance, staff may misuse them (e.g., uploading client contracts or asking them to draft HR documents with personal details).
Tip for small businesses:
- Create an AI Acceptable Use Policy outlining what staff can and cannot do with AI tools.
- Provide regular cybersecurity awareness training.
6. Vendor Lock-In and Data Control
When your business starts depending on AI tools, consider what happens if the provider changes terms, raises costs, or suffers a breach.
Tip for small businesses:
- Have a clear exit plan.
- Avoid putting all your operational knowledge into one platform.
Final Thoughts
AI assistants like Microsoft Copilot and ChatGPT can give small businesses a real competitive advantage — but only if used with the right safeguards. By considering data privacy, compliance, accuracy, and staff training, you can enjoy the productivity benefits of AI while minimising the cybersecurity risks.
Here at IT-Pro Support, we help small businesses in North Wales adopt modern technologies securely. If you’re thinking about rolling out AI tools in your business, get in touch for expert advice on policies, compliance, and IT support.
