AI tools are transforming how small and mid-sized businesses operate, from automating tasks to enhancing customer experiences. But with great efficiency comes great responsibility.

Before you integrate any AI tool into your workflows, it’s critical to assess its impact on your cybersecurity. One overlooked vulnerability could compromise your entire business.

Here are five essential questions every SMB should ask before deploying any AI solution:

1. What data does the AI tool collect and how is it stored?

AI tools often process sensitive customer or internal data. Before using them, ask:

  • What type of data is being collected?

  • Where and how is the data stored?

  • Is it encrypted during storage and transmission?

Quick win: Avoid tools that store data indefinitely or lack transparency around their data handling policies.

2. Is the tool compliant with relevant regulations (like GDPR, HIPAA, or CCPA)?

Using a non-compliant tool can expose your business to fines, lawsuits, and reputation loss — even if you’re not in a regulated industry.

Ask the vendor for:

  • Documentation of compliance

  • Certifications or audits

  • Data privacy practices by region

3. Can I control who has access to the AI tool and its data?

Not everyone in your company should have full access to AI tools or the data they generate. Look for:

  • Role-based access controls

  • Activity logs and user audits

  • Multi-factor authentication support

4. Has the tool been tested for security vulnerabilities?

Make sure the platform has undergone rigorous security testing. You should be able to access:

  • Results of penetration tests

  • Independent security audits

  • Their vulnerability disclosure process

5. What’s the vendor’s response plan if they experience a breach?

No system is 100% immune. Ask:

  • Will we be notified immediately of any incidents?

  • What is their breach response time?

  • Do they offer customer support in the event of a security issue?

Secure Before You Deploy

As tempting as it is to jump into AI for efficiency or innovation, rushing in without proper evaluation can lead to security risks, legal issues, or costly downtime.

Protect your business by doing your due diligence and don’t assume every tool is secure by default.

Need help vetting your current tools or setting up a secure AI strategy?

Call us at +1-843-900-4576 or visit temp123.knowlogix.com/ to book your free security readiness consultation.
Let our experts help you identify risks before they become problems.