AI tools are increasingly used in workplaces to enhance productivity but come with significant security risks. Workers may unknowingly breach privacy laws like GDPR or HIPAA by sharing sensitive data with AI platforms, risking legal penalties and job loss.

Experts warn of AI hallucinations where chatbots generate false information, highlighting the need for thorough human review. Bias in AI outputs, stemming from flawed training data or system prompts, can lead to discriminatory decisions and potential lawsuits.

Cyber threats like prompt injection and data poisoning can manipulate AI behaviour, while user error and IP infringement pose further challenges. As AI technology evolves, unknown risks remain a concern, making caution essential when integrating AI into business processes.