AI Updates

How Small Businesses Can Protect and Secure Data in the Age of AI


Don’t you think you’re lucky to run a business now, in the age of AI? Think about it: chatbots can answer customer questions at 2 A.M., AI tools can draft your emails, and data can tell you exactly what your customers want. 

That is cool, no doubt. But with all that powerful tech comes a new level of responsibility, especially when it comes to protecting your data. 

Hackers aren’t just going after the giants. Small businesses are now major targets, too. 

Here are some practical tips that can help you keep your data safe, your customers’ trust intact, and your business rolling strong. 

1 Implement Data Anonymization Techniques

Never store or use that data in its raw form unless you absolutely have to. Raw data, especially if it includes sensitive information like personally identifiable information (PII), is a prime target for cyberattacks and data breaches. 

Eliminate specific private details from data that could identify individuals. This is known as data anonymization. 

Why does this matter? AI tools learn from whatever data you feed them. If that data includes customer names, emails, or other PII, the AI might learn patterns that could accidentally reveal that private information later on.

Using anonymized data helps stop the AI from memorizing or leaking secrets while letting you get insights without risking individual privacy. 

There are a bunch of ways to do this. One common method is data masking, where you replace sensitive data with modified values. Partially hiding an email address or showing only the last four digits of a credit card are examples. 

Pseudonymization—swapping out real names or identifiers for fake ones or codes—is another technique. Replacing “Jane Doe” with “Customer_567” or a random string like “A1C329SG” is an example. 

2 Be Careful When Using PII For Training

Whether it’s for building their own tools or fine-tuning models to better fit their business, many businesses use customer data in training sets. 

Carelessly including PII in AI training can lead to significant legal and ethical problems, however. 

Why? That is because once that data is in the training set, it can’t be easily pulled back out. And in worst-case scenarios, that data could leak through model outputs later.

Case in point—ChatGPT data breach. In May 2023, a vulnerability in an open-source library led to a data breach affecting OpenAI’s ChatGPT chatbot. The breach exposed sensitive user data, including social security numbers, phone numbers, and geographic locations. 

Moral of the story? Don’t use customer data for AI training. This is seriously the best defense. 

If you absolutely must use PII with AI, you need to be crystal clear about it. Spell out exactly what you’re doing, why you need the PII, and how you will use it for AI in your privacy policy. Use plain English, not legalese. And don’t just quietly update your policy, hoping no one notices—that is a big no-no according to the FTC. 

3 Build a Cyber-Resilient Culture 

Technology is great, but your biggest security asset (or liability) is often your team. You can have the fanciest firewalls on the planet. But if someone on your team clicks a sketchy link, the game’s over. 

So what do you do? Build a culture where security is a part of everyday life. 

Have basic security policies that are easy to understand and follow. Teach things like locking your computer when you step away, using secure Wi-Fi for work, and how to handle customer data. Make sure everyone can easily find these rules.

Run security training regularly. Cover the essentials that people encounter every day. Use real stories, interactive quizzes, short videos, or even run practice phishing tests, but make it a learning moment. 

Teaming up with cybersecurity providers can be a wise move to safeguard your business data. Cybercriminals are employing increasingly advanced tactics, such as ransomware and phishing scams, to target both individuals and businesses.

According to Cyber Protect, partnering with an expert cybersecurity provider can fortify your defenses against the latest threats and safeguard your business’ future. 

Plus, these professionals can help tailor training and monitor risks without overwhelming your crew.

4 Take A Zero-Trust Approach

Forget the old ‘castle-and-moat’ network security model where once you’re inside the network, you’re trusted. That worked back when everyone sat in the same office and used the same computers.

But in this era of remote work, cloud tools, and ubiquitous AI systems, that strategy leaves you highly exposed and practically invites security breaches.

Instead of assuming that everything behind your firewall is safe, implement a zero-trust approach. CSO Online explains that this principle effectively locks down data and limits the scope of security breaches.

Strong authentication, especially multi-factor authentication (MFA), is key here. Use the principle of least privilege. Give people and software only the bare minimum permissions they need to do their specific job, and ideally, only when they need it—sometimes called Just-in-Time or Just-Enough-Access. 

Why? If an account gets hacked, the attacker can only access a small slice of your stuff, not the whole pie.

If you’re a small business using AI, the goal isn’t to be scared of technology but to use it wisely. And part of that is being a good steward of the data you collect, store, and analyze.

You don’t need a huge IT department or a million-dollar budget to keep things secure. Just a few solid habits, a bit of training, and the right cybersecurity service provider in your corner can beef up your data security. 

So, put these tips into action and you’ll keep your business’ data safe and secure.

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