AI and Security: Why Free Tools Can Be Risky for Your Business
Artificial Intelligence (AI) is transforming how businesses operate—from automating workflows to enhancing decision-making. But as organizations increasingly adopt AI tools, a critical question arises: how secure are these tools, especially the free ones?
I used my extensive experience in AI, focused on the Microsoft platforms, to write this blog. However, the concepts apply to most other platforms as well. Open AI, Google, xAI, Anthropic, and IBM all offer security tools as well.
The Hidden Risks of Free AI Tools
Free AI tools are widely accessible and often powerful, but they come with significant security concerns:
Data Leakage: Many free AI platforms process user inputs on shared infrastructure. If sensitive company data is entered, it may be stored or used to train models, potentially exposing proprietary information.
Lack of Compliance: Free tools may not meet industry-specific compliance standards like GDPR, HIPAA, or ISO 27001, putting organizations at legal and regulatory risk.
Limited Transparency: Users often have little visibility into how data is handled, stored, or shared. Terms of service may allow vendors to retain or analyze inputs without explicit consent.
No Enterprise Controls: Free tools typically lack admin controls, audit logs, or integration with identity management systems—making it difficult to enforce usage policies or monitor activity.
Why Paid AI Tools Are Safer for Businesses
Enterprise-grade AI solutions like Microsoft Copilot for Microsoft 365 and Copilot in Edge are designed with security and compliance at their core.
If need this, ask your IT Department or consultant what you need to implement the security.
Be careful with paid tools. Some just provide more resources and no security.
Microsoft Copilot for Microsoft 365
The primary advantage of this license is it fully integrates Microsoft applications so that Copilot lights up in Word, Excel, Outlook, PowerPoint, Teams, etc.
Data Residency and Privacy: Your data stays within your Microsoft 365 tenant. It’s not used to train public models and is protected by Microsoft’s enterprise-grade security.
Compliance-Ready: Copilot inherits Microsoft 365’s compliance framework, including support for GDPR, HIPAA, and FedRAMP.
Access Controls: IT admins can manage access, monitor usage, and apply data loss prevention (DLP) policies.
Audit and Logging: Activities are logged for compliance and security auditing, giving organizations full visibility.
Copilot in Microsoft Edge
To use Copilot in Microsoft Edge with Enterprise Data Protection (EDP), your organization must have a Microsoft 365 subscription that supports Microsoft 365 Copilot and meets certain licensing prerequisites.
Context-Aware Security: When used in Edge, Copilot can interact with enterprise content securely, respecting organizational boundaries and permissions.
Browser-Level Protections: Edge offers built-in security features like SmartScreen, sandboxing, and integration with Microsoft Defender for Endpoint.
Licensing Required: Edge has a free version and a paid version. They are quite different in security.
What Enterprise Data Protection (EDP) Includes
When using Copilot in Edge with a supported license:
Prompts and responses are protected under Microsoft’s enterprise terms.
Web queries (via Bing) are anonymized and not used to train models.
Data is encrypted at rest and in transit.
Copilot respects organizational policies, including sensitivity labels, retention policies, and access controls.
No data is used to train foundation models
Look for the green check mark and the Work/Web sector to see if you have Edge EDP
Other Secure AI Alternatives
While Microsoft leads in enterprise AI security if you are using Microsoft platforms (Microsoft 365 or Azure), other vendors also offer secure options:
Google Duet AI (Workspace): Integrated with Google Workspace, Duet AI offers enterprise-grade security, data encryption, and admin controls.
OpenAI Enterprise ChatGPT: Offers enhanced privacy, SOC 2 compliance, and no data retention for prompts or responses.
Anthropic Claude for Business: Claude’s enterprise version includes data isolation, encryption, and customizable access controls.
IBM Watsonx.ai: Built for regulated industries, Watsonx.ai supports secure deployment models and integrates with IBM’s governance tools.
Grok for Business, a dedicated offering for companies that need enterprise-grade AI capabilities.
Final Thoughts
AI can be a game-changer—but only if it’s deployed securely. Free tools may be tempting, but they often lack the safeguards needed for business use. Investing in paid, enterprise-grade AI solutions ensures that your data stays protected, your compliance obligations are met, and your teams can innovate with confidence.