AI tools like ChatGPT are capturing sensitive company data. CEOs and CFOs need to act now before these AI conversations become legal evidence that costs their company millions. 

You have a problem happening inside your company right now. 

Your team is using AI tools like ChatGPT every single day. They are asking these tools to write emails, draft proposals, brainstorm strategies, even get advice on personal and company issues. They believe they are talking to a private assistant. They are not. 

What they type into AI tools is stored. It is analyzed. It is part of a database that can be accessed, subpoenaed, and used in court. And none of it is covered by legal privilege. 

This is not a future risk. It is a present danger. 

AI is not private 

When Sam Altman, the CEO of OpenAI, warns that your conversations with ChatGPT are not protected, you should take that seriously. Everything typed into an AI tool leaves your control the moment it is submitted. It does not matter if the intention is harmless. 

Think about the kind of information employees are typing in. Notes about stalled projects. Details about internal weaknesses. Draft language about cybersecurity plans. Budgeting and cost-cutting strategies. Even confidential details about customers and vendors. 

It feels like a safe chat. It is not. 

Once a lawsuit hits, those chats can be pulled into evidence. That is when you discover the truth: your company has been leaving an open trail of information that anyone can follow straight back to you. 

Evidence can become a weapon 

In my experience helping businesses recover from ransomware and breaches, the companies that get hurt the most are the ones that lose control of their evidence. 

Everything your team says in writing becomes part of the story. That includes AI chat logs. 

Now imagine a lawyer going through months of employee conversations with an AI tool. Imagine them finding a note that says “we never fixed the backup issue because it was too expensive” or “we know our security is weak but we are hoping nothing happens.” 

That single chat is enough to cost you a lawsuit. And it will not just hit your company. It will hit you personally. 

The new blind spot in risk 

You already understand that cyberattacks are a major financial risk. The headlines prove it. What many do not realize is that employees using AI tools can be just as damaging as an actual breach. 

AI has opened a new blind spot. It is now possible for your company to be perfectly compliant on paper but still leak sensitive data every single day through AI conversations. 

This is why cyber insurance carriers are beginning to look at AI usage as part of their investigations. If a claim comes in and they can show that sensitive information was given away through AI, they will use it to deny the claim. 

This is not paranoia. It is already happening. 

The cost of doing nothing 

It is tempting to think this will not affect you. That is the same thing most business leaders thought about ransomware five years ago. Today, ransomware is a billion-dollar industry that has shut down hospitals, manufacturers, law firms, accounting firms, and everything in between. 

The same wave is building with AI. Businesses that do nothing will discover the cost in courtrooms. 

The legal costs alone are staggering. And the reputational hit when private internal information becomes public will last years. 

What you need to do 

If you are reading this, you are already ahead of most leaders. The first step is recognizing that this is happening. Right now. Inside your walls. 

You must take three actions immediately. 

First, you need an AI policy that tells employees what they can and cannot share. This is not optional. Without clear rules, every person on your team is making their own judgment about what is safe. That is not a risk you can afford to take. 

Second, you need monitoring. Your IT team or your MSP needs to know which AI tools are being used. You cannot manage what you cannot see. 

Third, you need to make sure this risk is documented in your liability planning. If your company does not have evidence that you have addressed AI usage, you are taking all of the risk on yourself. 

The fastest way to start 

You do not need a complex compliance program to take control. You need something simple to get your team aligned. 

We recommend starting with a Cyber Liability Essentials program. It is the easiest way to get your organization on board with policies fast. This program does three things that matter right away. 

It gets you a basic AI usage policy. It documents that policy so that you can prove you acted. And it gives you a starting point for monitoring and improving. 

Most importantly, it shows that you are not ignoring the problem. 

Waiting is the worst decision you can make 

The risks from AI tools are growing every day. Waiting six months means six months of conversations that could be used against you. 

AI is not a private advisor. It is a public record. Treat it that way before it costs you a client, a contract, or your company itself. 

It is your job is to manage risk. AI is now one of the largest, fastest-growing risks you face. It does not matter how strong your security stack is. If you ignore what your people are typing into AI tools, you are giving away your strategy to anyone who wants it. 

The companies that move now will be ready when the legal wave of AI-related lawsuits hits. The companies that wait will be in the headlines for the wrong reasons. 

Which one will your company be?