Overcoming Risks from Chinese GenAI Tool Usage

Brownie2019

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A recent analysis of enterprise data suggests that generative AI tools developed in China are being used extensively by employees in the US and UK, often without oversight or approval from security teams. The study, conducted by Harmonic Security, also identifies hundreds of instances in which sensitive data was uploaded to platforms hosted in China, raising concerns over compliance, data residency, and commercial confidentiality.

Over a 30-day period, Harmonic examined the activity of a sample of 14,000 employees across a range of companies. Nearly 8 percent were found to have used China-based GenAI tools, including DeepSeek, Kimi Moonshot, Baidu Chat, Qwen (from Alibaba), and Manus. These applications, while powerful and easy to access, typically provide little information on how uploaded data is handled, stored, or reused
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Interesting report highlighting how quickly Chinese GenAI tools are being adopted without approval. Even if the features are impressive, uploading sensitive enterprise data to a platform with unclear data handling policies can create compliance and IP risks. Organizations should establish clear AI‑usage policies, vet and approve trusted tools, and educate staff on data residency and confidentiality. Has anyone here rolled out guidelines for employees on generative AI usage?