Reap the benefits of AI without compromising your organisation’s security.
We know Artificial Intelligence (AI) has changed everything for everyone who has embraced it and adopted it into their personal lives, work habits and business operations. Faster decision-making, improved customer experiences, and streamlined workflows are now all at your fingertips, and it’s becoming more apparent that we can’t live without it in our daily lives. Couple this AI dependency with “free”, “low-cost”, and “readily available”, it’s tempting for organisations to jump right in, sometimes without fully understanding the security implications. The recent buzz around platforms like DeepSeek—and the cyber attack that hit its service—brings these concerns sharply into focus.
In this article, we unpack the main risks associated with AI apps and third-party websites and how you can implement robust security measures to stay protected.
So, are AI apps safe to use? The short answer: They can be—if deployed with the proper controls.
Addressing the Growing Concerns AI Apps and Security.
Free Apps vs. Enterprise-Ready Solutions
Free or low-cost AI apps often lack enterprise-grade security and comprehensive support. While these apps can deliver quick wins and cost savings, they may not have undergone rigorous security testing. This creates potential gateways for cybercriminals, especially as threats. Undoubtedly, the biggest issue with Free Apps and websites is the requirement for users to register and provide their details. This could enable others to collect valuable information to leverage maliciously.
So, is there even a safe way to use these free and low-cost solutions? Yes. And can they be used in an enterprise? Yes! Now, we know Enterprise-ready solutions are expensive and often positioned as the only option, but this is not the case. Installed correctly, solutions such as Ollama and OpenWebUI are both free/open source and can be adopted, used, and secured with Active Directory (AD) integration.
“The recent cyber attack allegedly affecting the DeepSeek platform—along with the availability of free apps to access it—highlights the pressing need to consider private, secure AI deployments. While these freely available apps and third party websites can be tempting, the real question is whether they provide sufficient safeguards for sensitive organisational data.” – Daniel Cox, Chief Technology Architect, Blue Crystal Solutions.
Data Sovereignty and Privacy
Some AI apps and third-party websites store data in different jurisdictions or have vague privacy terms. You could face data sovereignty and compliance risks if they route your data through servers in regions with lax regulations. Additionally, once you feed sensitive information into a publicly accessible AI, it may be stored, processed, or even used to improve the platform’s model. Depending on the AI provider’s policies, your data could be analysed for other purposes, potentially exposing proprietary or confidential details.
Beware of the “Hidden Costs”
While a free AI tool might seem attractive, the hidden costs can be enormous. And here are the top 3: Legal and compliance violations if you inadvertently expose customer data or violate privacy laws, the fines and legal ramifications can dwarf any savings. Then, there’s also reputational damage from data breaches, which erode customer trust and can impact business partnerships. Operational Disruptions are another big one, as recovering from a breach often involves downtime and costly remediation efforts. Just take a moment to consider if your organisation can genuinely withstand these costs for what could be a short-term gain.
Why the Right Controls Matter
Privacy Policies and Data Retention
When evaluating an AI solution—free or otherwise—carefully review:
- Privacy Policy: Some platforms retain user data indefinitely or share it with third parties.
- Terms of Use / Service: Some platforms outline restrictions on how their AI tools can be used, including limitations on commercial use, content generation, and liability disclaimers.
- Data Retention Policies: How long is your data stored, and for what purpose?
- Encryption Standards: Check whether your data is encrypted in transit and at rest, if available. Weak or missing encryption makes intercepting sensitive information much easier for adversaries.
Our Advice? Always request a Data Processing Agreement (DPA) or equivalent documentation to confirm how data is protected, especially if your organisation must comply with the Privacy Act 1988, GDPR, HIPAA, or other regulations.
“As generative AI continues to make headway across industries, it’s crucial to have robust guardrails in place. These measures aren’t about stifling creativity but rather about ensuring that the technology operates safely, ethically, and transparently. By setting clear boundaries, we can minimise risks like misinformation, bias, or the unintentional generation of harmful content, which in turn helps maintain public trust in these systems. While some might worry that too many restrictions could hinder innovation, a well-calibrated framework paves the way for more responsible and sustainable advancements in AI.” – Michael Kubik, Delivery Lead – Cloud Services, Blue Crystal Solutions.
Access Controls and Authentication
One of the most effective ways to secure any AI app is to limit who can access it and what they can do:
- Role-Based Access: Grant permissions according to job functions. Not everyone needs admin-level privileges.
- AD Integration: Tie user authentication to your centralised directory services. This enforces strong password policies, multi-factor authentication (MFA), and single sign-on (SSO) where possible.
- Audit Logs: Maintain detailed logs of who accessed the AI, when, and what data they interacted with. This helps with both security investigations and compliance audits.
Our Advice? Align your AI access control with existing identity management frameworks to streamline security and reduce credential sprawl.
Regular Security Assessments
AI technology changes quickly, and so do the threats targeting it. Routine security assessments ensure you’re not falling behind:
- Vulnerability Scanning: Automated scans detect outdated software, misconfigurations, and newly discovered exploits.
- Configuration Reviews: AI solutions often come with default settings that aren’t secure by design. Periodic reviews ensure optimal configurations.
- Penetration Testing: Ethical hackers simulate real-world attacks to spot weaknesses.
Our advice? A one-time scan isn’t enough. Ongoing checks are essential to help you keep pace with evolving threats so you can address vulnerabilities before they become breaches.
Why Private AI Deployments are the safest path
With these AI models readily available for download and customisation, Blue Crystal Solutions is seeing a unique opportunity to spin up private, cloud-hosted or on-premises AI services that rival what you’d get from ChatGPT—at a fraction of the cost. Whether leveraging DeepSeek or an alternative open-source model, the concept remains the same: with a Private AI, you have complete control over your data, security posture, and scaling, all without paying a premium to traditional AI providers.
By hosting the same underlying models in a private environment—integrating robust security measures like network isolation, active monitoring, and Active Directory for user authentication—organisations can achieve the benefits of AI without compromising on security or trust. Ultimately, balancing innovation with rigorous data protection is key to leveraging AI safely and effectively.
Key advantages of private AI deployments include:
- Isolated, dedicated Environments: Host your AI models on separate, secured servers or virtual machines.
- Risk Containment: In the event of a breach attempt, attackers won’t have access to other critical business systems.
- Complete Visibility: Control and customise monitoring tools to detect unusual activity in real-time.
- Rapid Response: In-house teams can respond immediately to security incidents without waiting on external vendors.
- Flexible Encryption: Encrypt data at rest, in transit, and even at the application layer, using standards that meet specific industry or regional regulations.
- Advanced Access Management: Integrate solutions like Active Directory for single sign-on (SSO) and role-based access, ensuring strict oversight of who can access your AI environment.
“A private AI deployment reduces the risk of data leaks and allows for custom compliance with industry or regional regulations,” informs Kubik. “Balancing cost, convenience, and security is crucial. In many cases, it’s more effective to invest in robust security protocols or a private AI solution from the start, rather than scrambling after a security incident.” Kubik recommended.
The Public Sector and Deepseek
According to a CyberDaily.au report, the Chinese AI has been banned for use by public servants and has been blocked on government networks just 24 hours after the federal government made the same move.
This ban underscores broader concerns about foreign data access, especially given DeepSeek’s reported vulnerability to malicious requests that chatbots like ChatGPT would generally refuse. It further reinforces the value of private AI deployments—allowing government agencies and enterprises to maintain tighter control over their data, reduce potential exposure to foreign surveillance, and better protect internal and public information.
How a Managed Service Provider can ensure a safe AI Adoption
Electing to use a Managed Service Provider (MSP) to manage your AI environment is becoming the safest path forward for organisations wanting to adopt AI tools. An MSP can design, build, and manage these deployments end-to-end, ensuring that organisations can innovate confidently while maintaining cost efficiency and compliance.
Our Advice? Find an MSP that understands the promise and the pitfalls of AI. Just like us. Our services focus on operational excellence, efficiency and security:
- AI Architecture and Integration
- We help you design and deploy AI solutions—like DeepSeek or other open-source models—in secure, private environments, keeping AI solutions localised within the company away from cyber threats.
- Ensuring seamless AD/SSO integration and role-based access helps protect against unauthorised use.
- Routine Security Assessments
- Our specialised Database Security Assessment identifies vulnerabilities in the data layer.
- We address misconfigurations, privilege issues, and compliance requirements to safeguard your most critical asset: your data.
- Proactive Monitoring and 24×7 Support
- We implement round-the-clock monitoring to detect outage threats.
- Incident response plans ensure rapid containment and remediation if an outage occurs.
Check Point: How to take the next step toward a secure AI Adoption
AI can unlock tremendous opportunities for insight and efficiency—but only if you keep security at the forefront. Before deploying any AI app, ask yourself:
- Do I fully understand the app’s privacy policies and data handling practices?
- Have I set up robust access controls, ideally integrated with Active Directory?
- Am I conducting regular security assessments and using best practices for threat detection?
- Should I consider hosting my own AI environment for greater control?
Don’t leave your organisation exposed if you’re not confident in your answers. Partner with Blue Crystal Solutions to ensure a smooth, secure AI rollout—whether you integrate an external app or build a private AI solution tailored to your needs.
Contact Blue Crystal Solutions to discuss how we can help you install, implement, manage, and maintain your AI solutions so you can confidently innovate, knowing your data and systems are protected from emerging threats.
Resources
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