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Navigating AI Security: Challenges and Best Practices

Navigating AI Security: Challenges and Best Practices

Ed Keck Withum
Date: July 9, 2026

As AI becomes embedded in everyday business processes, organizations must address AI security risks that traditional security programs were not designed to manage.

Every prompt is a potential exit door for sensitive information. Staff may paste source code, client records or trade secrets into tools that retain or train on what they receive. Once data leaves your boundary, you cannot recall it.

Employees adopt free, consumer-grade AI tools without IT’s knowledge, creating Shadow AI that operates outside established security controls. You cannot protect what you cannot see, and unsanctioned tools rarely meet enterprise data, security or retention standards.

AI is confident even when it is wrong. It can produce insecure code, fabricated facts or “hallucinated” software components that attackers are ready to exploit. Output accepted without review becomes tomorrow’s vulnerability.

AI introduces new techniques — such as prompt injection, where malicious instructions hidden in a document or web page hijack the tool, and autonomous “agents” that can take real actions with too much latitude.

Regulators, clients and insurers increasingly expect a named owner, a documented policy and an audit trail for AI use. “The AI did it” is not a defense.

Organizations can reduce AI security risks by implementing practical AI security best practices focused on governance, data protection and oversight.

  • Establish AI governance and ownership. Name an accountable executive and stand up a small, cross-functional AI committee spanning security, legal, privacy and business. Define your risk appetite and decide which tools are approved for use.
  • Set a clear, readable policy. A short acceptable-use policy — stating which tools are sanctioned, what data may and may not be entered and the consequences of misuse — often does more good than any single piece of technology.
  • Protect your data. Use enterprise-grade tools that contractually do not train on your data and offer no-retention options. Classify your data, and keep secrets, regulated information (such as PII and PHI) and confidential client material out of prompts. Apply data-loss-prevention monitoring.
  • Keep a human in the loop. Treat AI output as a draft, not a decision. Require review of AI-generated code and content, never allow it to merge or act automatically and scan generated code for vulnerabilities as you would any other.
  • Control access. Put AI tools behind single sign-on and multi-factor authentication, grant least-privilege access and maintain an approved-tool allow list. Tightly scope what any autonomous agent is permitted to do.
  • Monitor and prepare to respond. Log AI usage, feed it into your existing security monitoring and extend your incident-response plan to cover AI-specific events such as data leaks or compromised output — then rehearse it.
  • Anchor to recognized frameworks. You do not have to invent this. Align to established standards — the NIST AI Risk Management Framework, ISO/IEC 42001 and the OWASP Top 10 for LLM Applications — so your program is defensible and auditable.
  • Train your people. Your staff are the first line of defense. Brief, recurring training on what AI can and cannot be trusted with prevents most incidents before they start.

AI rewards organizations that move quickly — but only those that move securely will keep the trust of their clients and regulators. The goal is not to slow innovation; it is to govern it. Start with clear ownership and policy, protect the data that flows into these tools, hold people accountable for what AI produces and measure as you go. Done well, security becomes the foundation that lets your organization adopt AI with confidence rather than caution.