The Serious Professional’s Guide to Data Privacy in the Age of AI
Data privacy has always been a big deal for serious professionals – especially in industries like law and finance, where confidentiality is key. It's crucial for maintaining clients' trust, staying compliant with regulations, and protecting your business.
But AI (both traditional and generative) has created new data privacy risks. And the technology is evolving at a breakneck pace. That means it’s harder than ever to keep sensitive data safe from mishandling or theft.
The good news? With a few practical tips, you can more easily safeguard your data in today’s AI-driven world. We’ve got a few that can help.
Tip #1: Take Basic Data Privacy Precautions
Many professionals like using AI because it can help them work faster or uncover new insights from data. But bad actors can use the same tech to nefarious ends.
In the wrong hands, for instance, AI can generate sophisticated phishing emails that sound like an actual client or CEO. AI can also automate brute-force attacks to crack passwords. While many mainstream AI tools have protections in place to curb illegal usage, persistent actors have workarounds. And as the tech gets better and better, these security threats will become harder to evade.
You can mitigate your risk, though, with a few basic data privacy precautions. Make sure to…
Work from a secure network. Your office space should offer a members-only network that’s segmented from other user traffic. It should also give you the option to use ethernet connections for even more security.
Use strong passwords (and change them frequently). A strong password is your first line of defense against bad actors. Make sure each one you create has a mix of letters, numbers, and special characters. Update your passwords at regular intervals. And consider using an enterprise password manager (like LastPass, Dashlane, or 1Password) to keep your logins secure.
Invest in modern malware detection software. The best malware detection tools use AI to resist increasingly sophisticated viruses, ransomware, and other malicious attacks.
Stay on top of the latest phishing scams. Read up on new types of scams and make sure your team knows how to recognize them. Awareness, after all, is key to prevention.
By taking these basic data privacy precautions, you can better protect what matters.
Tip #2: Create a Responsible AI Use Policy
One of AI’s biggest data privacy concerns doesn’t come from outside companies, but from within.
Most employees use unauthorized or non-enterprise AI at work – from 74 percent of ChatGPT users to 95 percent of Gemini users. And the scariest part? Over 25 percent of the data entered is sensitive – from customer support info to legal documents.
This “shadow AI” problem is a major risk for companies. But a responsible AI use policy can help you set expectations about acceptable practices.
Generally speaking, an effective policy should…
Define authorized AI tools. Clearly specify which AI tools are approved for use. Enterprise applications will typically have more robust security standards than their consumer-facing counterparts.
Outline data handling protocols. Explain what type of data can be shared with an AI tool and note best practices for confidentiality (e.g., anonymizing personally identifiable information, redacting sensitive details from PDFs before uploading, etc.).
Establish monitoring and auditing practices. Plan to monitor AI use for compliance, and detail any consequences that may arise from violating your policy.
One last tip? Keep your policy flexible with regular updates so it stays aligned with evolving AI capabilities, use cases, and regulations. The Harvard Business Review has a great guide for more tips.
Tip #3: Use On-Device AI Platforms When Possible
Whether it’s a generative chatbot like ChatGPT or a transcription tool like Otter.ai, many AI platforms store the data you share in the cloud. While that does have advantages, cloud storage can also create serious data privacy risks.
For starters, your data could be more exposed to breaches. But perhaps more insidiously, vendors can use your data to train their models – a big concern if you handle sensitive or proprietary information. Just imagine using an AI chatbot to write up an internal financial report, only for it to leak specific details to a competitor researching your company with the same tool.
One emerging alternative to keep on your radar is on-device AI. These platforms run directly on your device, whether that’s a laptop or a smartphone. And many function similarly to cloud-based tools, but without the security drawbacks. In particular, on-device AI can…
Keep your data secure: With on-device AI, you have more control over your data – and it isn’t at the mercy of a cloud provider’s digital security. Your data also likely won’t be used to train future models.
Simplify compliance: Because data doesn’t leave your device, on-device AI likely carries fewer legal risks and can make it easier to comply with data privacy regulations.
Process data faster: On-device AI typically comes with faster processing, and you don’t have to worry about delays during high-traffic periods.
While options for on-device AI are relatively limited, the pool is growing. Apps like Krisp are great for secure audio transcriptions. And Apple Intelligence will bring on-device AI to new Apple products. Keep an eye on this space; as similar solutions crop up, they’ll likely enhance your data privacy in exciting ways.
Prioritize Data Privacy Throughout Your Business
AI is complicating the data privacy landscape. But with a robust strategy, you can proactively protect your and your clients’ most valuable information.
Where you work plays an important role in that effort. It’s important to choose a workspace that values privacy as much as you do.
That’s our ethos at Firmspace. We’ve equipped each proworking space with a range of digital and physical privacy measures, from penetration-tested, members-only networks to in-office sound masking tech and security cameras on every floor.
When it comes to protecting your data, we think a secure workspace is worth the investment. But don’t just take our word for it. Book a tour at a location near you and see the Firmspace difference for yourself.