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If you're leading a small to mid-sized business, AI is already part of your world, even if your company banned it. In this episode, Alec Crawford of AI. Risk joins Mike Montague to explore the real risks AI poses to SMBs: data privacy, prompt injection attacks, and brand reputation. But more importantly, they discuss the risk of doing nothing at all. From employee workarounds to unsecured AI tools, the conversation breaks down what’s already happening under the radar and how leaders can respond without overreacting.

This episode covers the practical middle ground between fear and blind adoption. You’ll hear about safe deployment options, where AI adds the most value, and why cybersecurity needs to be reimagined for generative tech. If you want to use AI without losing control of your data or your competitive edge, this one’s for you.

Key Takeaways

1. Privacy is the #1 risk for businesses using AI tools
Employees often input sensitive or confidential data into public tools like ChatGPT without realizing it could be stored, reused, or leaked.

2. Public AI tools may claim ownership of your input and output
Tools like Perplexity explicitly state in their terms that they can retain and repurpose user data, which can compromise IP and confidentiality.

3. The best defense is private deployment of AI models
For companies handling sensitive data, open-source models deployed on private cloud or on-prem systems offer control and security.

4. AI prompt attacks and "jailbreaks" are a rising threat
Prompt injection attacks can manipulate AI behavior or access training data, and most companies don’t yet have defenses for these threats.

5. Cybersecurity needs a new layer for generative AI
Traditional firewalls and endpoint protection don’t catch AI-specific attacks like prompt manipulation or LLM misuse; a new security layer is needed.

6. Zero trust and defense-in-depth are essential frameworks
Even inside your network, you need systems that validate identity and monitor behavior to prevent unauthorized AI access.

7. The biggest long-term risk is falling behind competitors
Companies that ignore AI may find themselves outpaced by those who integrate it strategically, missing out on massive productivity gains.

8. It’s safer to engage AI with rules than to ban it
If AI is blocked, employees will likely use it outside IT’s control; providing secure, sanctioned access is more effective than prohibition.

9. AI agents can offload low-value tasks and free up time
Daily agents that write follow-up emails or analyze portfolios already exist and can save leaders hours each day.

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