Harnessing the Power of Generative AI to Optimize Risk Management

Jagannadh Kanumuri
6 min readJun 30


Step into the mesmerizing world of generative AI chatbots, where technological marvels are reshaping the digital realm at an astonishing pace. At the forefront stands ChatGPT, a breathtaking creation that has enthralled users with its extraordinary talents, effortlessly assisting in everything from casual banter to intricate coding challenges. However, amidst this awe-inspiring innovation, a vital concern demands our undivided attention: security. While the vast benefits of generative AI chatbots are undeniable, we must not overlook the imperative need for robust security protocols to safeguard sensitive data and uphold privacy regulations. By striking the delicate balance between harnessing the boundless potential of chatbots and mitigating the looming security risks, businesses can fully embrace their transformative capabilities while preserving the sanctity of their networks and protecting invaluable information. In this dynamic landscape where innovation and security converge, let us explore the captivating world of chatbots and discover how data protection takes center stage.

Generative AI is Here to Stay

Since their inception in the 1960s, chatbots have undergone significant advancements. Originally limited to responding to basic user inputs, modern chatbots now employ reinforcement-based AI learning techniques. They possess the capability to scour the Internet or specified databases for information, enabling them to generate extensive pieces of writing, tackle coding problems, and simplify complex subjects. This is in reference to the subject proposal, following are our POINT WISE Replies to your observations.

Among the popular chatbots today, ChatGPT stands out as a prominent example. However, there are other AI counterparts available as well. Bard, an experimental AI chatbot developed by Google, differentiates itself by having access to Google’s search engine. This feature potentially enhances Bard’s accuracy and currency of information compared to ChatGPT. As further advancements continue to refine chatbot capabilities, they will increasingly benefit businesses seeking to keep pace with rapid content creation and address security vulnerabilities. Nevertheless, businesses must also be mindful of the potential risks associated with chatbot usage.

Overall, the evolution of chatbots has revolutionized various industries, offering valuable assistance to businesses while simultaneously necessitating a comprehensive understanding of the potential risks involved.

Utilization of generative AI poses challenges in terms of security and compliance

While ChatGPT itself doesn’t browse the Internet for data, users interact with it through the Internet. This means that any sensitive information provided by users to ChatGPT, or other generative AI models could potentially be at risk of exposure. Moreover, generative AI systems that do web crawling, such as Bard and similar counterparts, might come across sensitive data that was not intended for unencrypted software to access. Organizations lacking knowledge about the storage locations of their data or having inadequate security measures may find that chatbots can access and utilize that data to generate responses.

In situations where an insecure network connection or malware is utilized by an attacker to intercept the messages entered a chatbot, there exists a significant risk of exposing proprietary information or code. It is crucial to recognize that any personal information shared with a generative AI contributes to its learning, thereby increasing the potential for unauthorized access to sensitive data such as a company’s code, personally identifiable information, or private data. Such exposure not only poses a threat to data security but also raises concerns regarding compliance with regulations like GDPR and CCPA. In fact, it has been reported that approximately 11% of the content posted in ChatGPT by employees consisted of sensitive company information, a clear violation of these standards. Non-compliance could result in severe penalties and fines.

While chatbots are designed to assist with various tasks, they are not infallible. For instance, if one were to request a chatbot to generate code, it is essential to thoroughly assess it for potential vulnerabilities. Unfortunately, this crucial step is often overlooked due to overconfidence in AI capabilities. However, neglecting to verify the generated code can create an avenue for attackers to identify and exploit vulnerabilities, potentially leading to the exposure of sensitive data. Therefore, it is imperative to remain vigilant and conduct proper vulnerability checks to mitigate the risks associated with utilizing chatbot-generated code. By doing so, organizations can better protect their data from compromise and unauthorized access.

Securing Corporate Data Against Generative AI

Undoubtedly, human error plays a significant role in the challenges associated with generative AI. Instances where users input sensitive data or fail to adequately secure their systems can create vulnerabilities and potential entry points for attacks. Consequently, training employees becomes crucial in enhancing security measures. It is essential for employees to understand what data can be shared with generative AI and to be aware of the necessity to proofread or test its responses before implementation. Without proper training, employees are more prone to unintentionally compromise their organization’s data.

While training is vital in addressing issues related to generative AI usage, there are additional strategies that can be employed to safeguard data. One such strategy is limiting employee access to data, ensuring they can only access the specific information required for their job responsibilities. Additionally, focusing on data organization and classification, as well as implementing data protection measures like encryption, can enhance data security. Employing data masking techniques, which conceal the values of input data, can also reduce the risk of exposing private information.

Although generative AI can assist organizations in optimizing their time and resources, it is important to recognize that chatbots are not designed to prioritize data security on their own. Organizations must take responsibility for protecting themselves against potential risks, such as incorrect or outdated information, flawed code, web crawling AIs, and attackers attempting to steal the information provided to the chatbots. It is crucial to approach chatbots with a mindset that acknowledges their potential security risks and to implement appropriate security precautions to mitigate those risks. By being prepared, organizations can reduce the likelihood of an attack and minimize the impact in the event of a successful data breach.

The new and amplified risks to manage

The active promotion of responsible AI, prioritizing trust-by-design over speed alone, is a crucial value proposition to customers, investors, business partners, employees, and society as a whole. Although every executive and user contribute significantly, the following key C-suite leaders will play a vital role in activating this responsible AI approach.

  • Chief information security officer

Generative AI poses a significant concern by lowering entry barriers for malicious individuals. The primary immediate risk to be concerned about is the emergence of highly sophisticated phishing techniques. These could involve the creation of more persuasive and personalized bait through various mediums such as chats, videos, or even live-generated “deep fake” content. These deceptive tactics may involve impersonating familiar individuals or authoritative figures.

For the Chief Information Security Officer (CISO), the inclusion of Generative AI introduces an asset that threat actors can target. Consequently, your organization must enhance its cybersecurity measures to effectively manage this new challenge. There is a potential for threat actors to manipulate AI systems in order to generate inaccurate predictions or disrupt services provided to customers. As a result, it becomes crucial to strengthen the cyber defense mechanisms protecting your proprietary language, foundational models, data, and newly generated content.

  • Chief data officer and chief privacy officer

Applications of Generative AI have the potential to amplify data and privacy risks. This is because large language models rely on extensive data sets and generate new data, which can be susceptible to biases, low quality, unauthorized access, and loss. Some companies already face significant challenges due to employees inputting sensitive information into publicly accessible generative AI models. Generative AI with its ability to store input data indefinitely and utilize it for training other models, may violate privacy regulations that limit the secondary use of personal data.

  • Chief compliance officer

Compliance officers may need to make significant adjustments to keep pace with the emerging nimble and collaborative approach to generative AI, which demands a regulatory-and-response mindset. They should stay vigilant in staying updated on new regulations and the intensified enforcement of existing regulations pertaining to generative AI.

  • Chief legal officer and general counsel

Insufficient governance and oversight of a company’s utilization of generative AI can lead to increased legal risks. Inadequate data security measures, for instance, may lead to the public exposure of the company’s trade secrets, proprietary information, and customer data. Failing to conduct thorough reviews of generative AI outputs can result in inaccuracies, non-compliance issues, contract breaches, copyright infringement, erroneous fraud alerts, flawed internal investigations, detrimental customer communications, and damage to the company’s reputation. To effectively address and defend against issues related to generative AI, legal teams will require a deeper technical understanding that is not typically possessed by lawyers.

In conclusion, unleashing the force of generative AI in risk management is a true paradigm shift. By unleashing the wizardry of automated risk assessment, real-time surveillance, and visionary simulations, organizations unlock the vault of priceless wisdom and fortuitous tactics to sail through tempestuous waters. The embrace of generative AI is more than a fleeting fad; it is an urgent call for strategic mastery in the face of an intricate and ever-changing universe. Seize this mystical power of generative AI now and unveil unparalleled competitive supremacy that will captivate the world.



Jagannadh Kanumuri

Global CEO — ACI INFOTECH & ACI GLOBAL Group of Companies Investor/Advisor- Lyft, Postmates, UserMind