Mitigating Risks of Using Chinese GenAI Tools

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Growing Concerns Over Unauthorized Use of Generative AI Tools

A recent examination of enterprise data reveals a worrying trend: employees in the U.S. and the U.K. are utilizing generative AI tools developed in China, frequently without the approval or oversight of their organizations’ security teams. This study, conducted by Harmonic Security, highlights the risks associated with the unauthorized sharing of sensitive information and raises significant concerns regarding compliance and data privacy.

Widespread Usage of China-Based AI Tools

Harmonic Security’s extensive analysis over 30 days monitored the activities of 14,000 employees across various companies. The results showed that nearly 8% of these employees accessed GenAI tools hosted in China—popular names like DeepSeek, Kimi Moonshot, Baidu Chat, Qwen (from Alibaba), and Manus—all of which are user-friendly and easy to access. However, they often lack clarity regarding the handling, storage, and potential reuse of uploaded data.

This discrepancy between the rapid adoption of AI technologies and the governing frameworks meant to regulate them is particularly pronounced in organizations with a heavy focus on development. In such environments, the push for quick outputs often overshadows the need for adherence to established protocols.

The Scale of Data Exposure

The assessment revealed an alarming volume of sensitive data uploaded to these platforms: over 17 megabytes by 1,059 users. Harmonic identified 535 instances where sensitive information, including source code and engineering documents, was exposed. Notably, nearly one-third of the uploaded material encompassed sensitive files related to mergers and acquisitions, financial reports, personally identifiable information (PII), legal contracts, and customer records.

DeepSeek emerged as the most commonly used tool, accounting for 85% of reported incidents. Other platforms like Kimi Moonshot and Qwen are also gaining traction. These applications are changing the landscape of generative AI within corporations, shifting from sanctioned solutions to grassroots, user-driven adoption.

Risks of Opaque Data Policies

Many of the Chinese generative AI services operate under unclear or lenient data handling policies. Some platforms even stipulate in their terms that uploaded content may be repurposed for further model training. For firms operating in regulated industries or managing proprietary information, understanding these risks is paramount.

Implementing Effective Policy Controls

In response to these challenges, Harmonic Security has developed tools designed to assist organizations in regaining control over generative AI usage within their workplaces. Their platform provides real-time monitoring of AI activities and enforces compliance at the precise moment of usage.

Companies can establish nuanced controls to limit access to specific applications based on their headquarters’ locations, restrict particular types of data from being uploaded, and educate employees through contextual prompts that appear during interactions with these tools.

The Necessity of Governance in AI Adoption

The issue of unauthorized use of generative AI within enterprises is no longer just a theoretical concern. Harmonic’s findings indicate that nearly one in twelve employees is already interacting with Chinese AI platforms, often without a clear understanding of the associated risks regarding data retention and jurisdictional issues.

Awareness of these risks may not be enough. Organizations must implement proactive controls to enable the adoption of generative AI responsibly, balancing innovation with compliance and security demands. As the capabilities of this technology advance, so too will the need for robust governance frameworks.

Harmonic Security makes it feasible for companies to harness the power of generative AI while safeguarding their sensitive data and maintaining compliance standards. Organizations seeking to refine their AI usage policies and protect critical information are encouraged to explore the solutions offered by Harmonic Security.

For further insights into enhancing AI policies and data protection, visit harmonic.security.


This topic is especially timely, given the increasing integration of AI into various business operations. As companies navigate this evolving landscape, understanding the risks and establishing clear policies will be essential in embracing technology without compromising security.

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