AI Security, Intellectual Property (IP) & Privacy Gaps – What is confidential to AI?

31 Oct. 2024 - - Total Reads 354

AI Security and IP

Why AI doesn’t know what’s confidential — and how to protect your business from exposure

AI models are not inherently secure. They’re not aware of what’s private, regulated, or commercially sensitive. When you pass confidential information into ChatGPT or other large language models, they don’t have built-in filters to protect your IP, redact private user data, or comply with privacy frameworks like GDPR or HIPAA. That’s your job — and in regulated industries, failing to do so can trigger serious consequences.

Why This Is a Problem

LLMs don’t understand security boundaries. If you give them sensitive content — a legal contract, internal strategy doc, or a patient file — they’ll happily analyse, summarise, and even remix that data. Worse, if you don’t properly clean the inputs and outputs, the model can:

  • Leak confidential info in its responses
  • Include identifying data when responding to unrelated prompts
  • Misclassify, hallucinate, or suggest actions that violate compliance rules

Does OpenAI Train on Your Data?

By default, yes — inputs into ChatGPT may be used to improve the model. This includes prompts and content submitted through the public web interface (chat.openai.com). However, API usage is opt-out by default — OpenAI states that API inputs are not used for training unless explicitly enabled.

Still, if your data is proprietary or sensitive, it’s safest to:

  • Assume all external model use is untrusted
  • Treat prompts as if you’re publishing to the internet

Mitigation Strategies

1. Redact and Mask Data Before Sending to the Model

Remove or replace identifiable fields before sending prompts;

user_prompt = “Customer John Smith at ACME Corp requested refund.”
safe_prompt = user_prompt.replace(“John Smith”, “[REDACTED_NAME]”).replace(“ACME Corp”, “[REDACTED_ORG]”)

Use token-based masking for more granular protection.

2. Hash Identifiable Fields (for reversible matching)

If you need to link back to original data later:

You can store this hash as a reference key — the model sees only anonymised input.

3. Use Internal LLMs or Isolated Environments

For highly sensitive work (IP, legal, R&D), consider:

  • Running LLMs in a private cloud or on-prem
  • Using open-source models like LLaMA or Mistral inside firewalled environments
  • Wrapping models with policy enforcement, logging, and audit tools

4. Filter and Post-Process AI Output

Even if input is safe, the model can still generate unsafe responses. Use regex filters, classification models, or human review to scrub outputs before they’re exposed to users.

When This Matters Most

  • Legal: Leaking case files or privileged communications
  • Healthcare: Exposing patient info, violating healthcare codes
  • Finance: Sharing transaction history, insider data
  • Tech: Revealing product roadmaps, code, or strategies

Final Thought

LLMs don’t protect your data — they process what you give them. That means security and privacy need to be enforced before and after the model, not just inside it. With smart redaction, structured pipelines, and enterprise-grade access control, AI becomes powerful and safe.

Need help deploying AI without risking your IP? AndMine can help you design secure, scalable AI systems that protect your data and reputation.

Michael Simonetti, BSc BE MTE
Posted by:

Post Reads: 354

Share this

Go on, see if you can challenge us on "AI Security, Intellectual Property (IP) & Privacy Gaps – What is confidential to AI?" - Part of our 183 services at AndMine. We are quick to respond but if you want to go direct, test us during office hours.

Add Your Comment

Trusted by

intowork logo
CAN- Common Wealth Bank
Passage To India
Matchbox Homewares
skillhire logo
Mecca Brands
Cooper Mills
LBG Australia and New Zealand
intojobs logo
Grays Ecommerce
Microsoft Certified Azure Fundamentals
nextgenskills logo
Appstore
Grow Your Business
Novvi
21st Century Australia Party
QV Skincare
Rock Pool Group
Street Kitchen
AC/DC
Brisbane Times
CB Richard Ellis
Arthur Galan
Engine Swim
VISSF
Tribe
SunSense Digital Agency
Engineers Without Borders
HGG 
Gadens
Palace Cinemas
Coles
liberal
University of South Australia
Google
National Relay Services
nara logo
Jetstar
kestrel logo
Eway
Moov Head Lice
131 Pizza
ACTUATE IP
ctc logo
Federation University Australia
ADP Payroll
interact logo
Instant RockStar
Naturtint
Inferflora
Bolle Safety
CCI
Federation Square
Bostik
The University Of Melbourne
Loan Market
Herbert Smith Freehills
Etihad Stadium
Oakdale Meat Co
Sports Power
aga logo
Melrose MCT
OJAY
ABC
Hairhouse Warehouse
The Burger Cheese
The Fortune Institute
Ello
Tomorrow Stars Basketball
Sunday Creek
White Suede
James Buyer Advocates
Ebay
GPT Group
Plants
findstaff logo
mas national logo
DUSA, Deakin University Student Association
Castran Gilbert
Maxine
Van Egmond Group
ISO Certified
Mark Alexander Design
Craft CMS
Metricon
High Street Armadale
Chia
Scrum.org
BlackMores
Vendor Advocacy Australia
Telstra
DeeWhy Market
Bintani Australia
Movember
Australian Government
Florsheim Shoes
Atlantic Group of Companies
Viktoria & Woods
Grainshaker
King Wood Mallesons
MyAccount
Associated Press
Elucent
Acquia Certified Site Builder Drupal
Dinosaur Designs
Catholic Insurance
Fresh Cheese Company
Max’s
ATT logo
NGS Super
Melbourne Heart
Aqium Gel
Jalna
Focus On Furniture
Adobe Professional
Liveoneday
Globird
OMS – Order Management System
Drupal
The Age
Marshall White
Melrose Health
itfe logo
NMI Insurance
Windsorsmith
Toy World
Tek Ocean
Crumpler
GooglePlay
Peter Mac
Forbes
News
Macpherson Kelley
Think & Grow Rich Inc
ISO CERTIFIED 27001
McArthur Skincare
Fit My Car
Parker Lane
Kay&Burton
WTFN
The Royal Melbourne Hospital
Fairfax Media
Cleanfit
Amino Active
The Canberra Times
work and training logo
Hanover
Switzer Media+Publishing
Uber
National Museum of Australia
SwinBurne University of Technology
Toni&Guy
Cronos Australia
RMIT University
Beaumont
Bulk Nutrients
Xavier
Paypal
NextTech
Ego Pharmaceuticals
Carlton Football Club
Heat Holders
Celebrate Health
PranaOn
Arc One
Shell
Vitura Health
Ubertas Group
Passage Foods
Fast.co
French Tables
Melbourne Sports and Aquatic Centre – MSAC
Oracle
Wild Rhino Shoes
Cell Therapies
Schiavello
Madman Entertainment
Victorian Government
Magento
Bondi Sands
Tassal
Watches of Switzerland
Garmin
Australian Organic Food CO
Rydges
Magento Solution Specialist
TPP
One Shift
Bigcommerce
Australian Physiotherapy Association
Positive Poster
Dial Before You Dig
MAP
Unsw Australia
OpenAI
Smart Company
Kadac
Macmillan Publishing
POSTER Magazine
Boston Consulting Group
Royal Freemasons
help logo
Australian Anthill
Mamma Lucia
learning partners logo
Melbourne Central
Bank of Cyprus
Rackspace
Taylor Rose
Launtel
Thomson Geer
iPrimus
Natralus Australia
SMH – The Sydney Morning Herald
Gilbert+Tobin
Green St Juice CO
htn logo
Banki Haddock Fiora

Testimonials

We contracted &Mine to build a new website and a ‘real-life’ online tutorial. We found their work to be creative and technically competent, and their staff friendly, professional and flexible. We are happy to recommend them. Deborah Fullwood, Director, WestWood Spice

More Testimonials
AndMine-Google-Partner-Signature