Monday, October 13, 2025

Unseen Risks: How Chatbots Could Endanger Your Company’s Intellectual Property | Shumaker, Loop & Kendrick, LLP

Agentic AI is revolutionizing business efficiency, but it poses hidden risks related to data confidentiality. While these autonomous agents excel at task completion, they often prioritize performance over data security, leading to potential leaks of sensitive information. Common leakage methods include context dumps, where unnecessary data is shared, fuzzy retrieval that inadvertently includes unrelated documents, and over-permitted access to systems. Additionally, shared memory without segmentation can lead to cross-contamination of confidential information.

To mitigate these risks, organizations should implement strict security measures, such as data minimization, clear access protocols, and task-specific credentials. Using structured templates for information exchange and separating memory by sensitivity can further enhance data protection. Monitoring content and ensuring compliance with contractual obligations regarding AI data handling are crucial for safeguarding intellectual property. By adopting a security-first approach, businesses can harness Agentic AI’s potential while minimizing the risk of data breaches.

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