What are the Risks of Using AI?

Discover the risks of using AI for your business processes, find out how to avoid them, and analyze policies of AI code generation tools to check their safety.

Yuriy Koziy, Co-Founder & CEO

03.08.2026

Risks of using AI.jpg

Key Takeaways

In this blog post

  • What are the Risks of Using AI?
  • Company’s or user data leakage
  • Intellectual property issues
  • Wrapping Up
01

Why AI Risks Matter for Businesses

Using AI for process optimization is a new direction that opens up endless opportunities for businesses of all sizes. As companies increasingly integrate artificial intelligence into their routines, there are more and more talks arising about the risks of AI. According to the survey from Deloitte 82% of generative AI users worry the technology could be misused (up from 74% in 2024). 64% worry tech companies may not protect their data. Only 27% are confident their data is protected.

Currently, many countries are working on legal changes to adapt to the new realities of using artificial intelligence. However, there are still lots of challenges we need to overcome.

Does this mean that you need to avoid artificial intelligence in work and daily routine? Of course not. To take advantage of innovative solutions without harming your company, you need to be aware of the risks in using artificial intelligence and ways to overcome them. Read more about them in this article.

02

Company’s or user data leakage

It’s important to highlight that AI is the simulation of human intelligence processes. Computer systems analyze huge datasets, collect insights on specific patterns, and then use this information to provide you with necessary results.

From design to content writing, from code generation to customer service - the AI-based solution always needs data input. And this is one of the main risks of AI technology.

Most big tech companies have databases with confidential information, including PII (Personally Identifiable Information) and IP (Intellectual Property). This can include data about their clients, technology information, contacts of providers and partners, etc. To make AI work effectively and integrate it into your processes, you need to share this information. As a result, this may lead to data leakage, as AI development companies get your confidential data stored on their servers.

Another reason to improve risk management while using AI is that employees can delegate their work to artificial intelligence. In this case, the situation gets out of your control. Business owners don’t know what information is shared and face commercial threats that can harm their reputation and processes in the company.

So, how to get benefits and avoid the risks of AI?

  1. Define what data can be shared with AI

Start with a data policy before anyone starts using AI tools. Classify information into what’s safe to share (public docs, generic code), what needs care (internal processes, anonymised data) and what must never leave your systems (customer personal data, credentials, source code under NDA, financials). Clear rules prevent most leaks, which usually come from well-meaning employees providing the wrong thing to an agent.

  1. Train employees to use AI safely and effectively

Tools don’t create value on their own. People do. Run short practical sessions on writing good prompts, recognising when AI output is wrong, and following your data policy. Teams that are trained get much better results and make far fewer risky mistakes than teams left to figure it out alone.

  1. Choose the right AI services

Not all AI tools treat your data the same way. Prefer business or enterprise plans that don’t use your data for training, offer data-retention controls, and support compliance needs such as GDPR, SOC 2 and data residency. Check where data is processed, read the terms, and keep a short approved list instead of letting every team pick its own tools.

  1. Set up an internal AI gateway for all models

If your scale allows it, route every AI request in your organnization through one internal gateway instead of letting each app call models directly. A gateway gives you one place to:

  • enforce data rules automatically, for example masking personal data before it reaches a model
  • log requests for audit
  • control costs and usage limits per team
  • switch between providers without changing your applications

It turns AI from scattered individual use into managed company infrastructure.

  1. Keep a human in the loop and review AI output

Treat AI output like work from a fast but junior colleague: useful, but it needs checking. Check licences and originality to avoid intellectual-property issues. For any customer-facing or business-critical decision, make sure a person reviews and signs off.

Rectangle 1333 (2).png
03

Intellectual property issues

When it comes to the question ‘What are the risks of AI?’, there’s one more important problem. If artificial intelligence produces something valuable, who is its owner? The question is kept unanswered.

57% of CEOs say AI ethics challenges, including transparency and intellectual property, are among their hardest to manage (KPMG, 2026). To avoid IP issues with AI-written code, start with the tool’s terms of service (output ownership, training on your data, IP indemnity), and back that up with licence scanning and code review before anything reaches production.

For you to avoid the risks of AI and keep calm about your business privacy and data safety, we’ve analyzed the 4 most popular artificial intelligence tools for code generation and collected data from their terms and conditions.

NameIntellectual PropertyData Privacy
Claude Code by AnthropicYou retain ownership of all Outputs. Anthropic assigns all of its right, title, and interest (if any) in and to the Outputs to the customer, subject to compliance with the terms.Anthropic doesn’t train on code or prompts sent under commercial terms, unless your organisation opts in, for example through the Development Partner Program.
Codex by OpenAIYou retain your ownership rights in Input and own the Output. The company assigns to you all rights, title, and interest, if any, in and to Output.OpenAI may use user-generated content to provide, maintain, develop, and improve services, ensuring compliance with laws and terms.
GitHub CopilotGitHub does not claim any ownership rights in Suggestions. You retain ownership of Your Code.GitHub Copilot collects personal data from three categories of data: User Engagement Data, Prompts, and Suggestions. Prompts and Suggestions are used only to provide the service and are not retained. User Engagement Data is used to provide the service and to enable improvements.
Cursor by AnysphereYou retain all of your right, title, and interest that you have in Inputs and Outputs. But Cursor does not defend you against third-party IP claims over generated code.Cursor does not use Content to train, or allow any third party to train, any AI models, unless you’ve explicitly agreed.
04

Wrapping Up

AI can make software development dramatically faster, but its risks are real. The good news is that these risks are manageable when AI is governed rather than banned.

Thus, we recommend being diligent in deploying artificial intelligence development tools within your business. Always consider these risks of using AI and organize your in-house team to apply it responsibly, checking the terms of use. You can also collaborate with a trustworthy development partner that will take care of your data safety and intellectual property.

At Quontex, we build AI into our engineering process with these safeguards in place. We also help companies set up their own secure AI infrastructure, from LLM integrations to internal gateways and MCP servers.

About the Author

Yuriy Koziy

Co-Founder & CEO at Quontex

Connect via LinkedIn

Related Resources

Jose Espinoza, Head of Business Development
Jose EspinozaHead of Business Development25 years in Telecom architecture

Need help implementing AI in your business? Our team is ready to audit your data.

Contact Our AI Experts