Workers are secretly using ChatGPT, AI and it will pose big risks for tech leaders
Lionel Bonaventure | Afp | Getty Images
Soaring investment from big tech companies in artificial intelligence and chatbots — amid massive layoffs and a growth decline — has left many chief information security officers in a whirlwind.
With OpenAI’s ChatGPT, Microsoft‘s Bing AI, Google‘s Bard and Elon Musk’s plan for his own chatbot making headlines, generative AI is seeping into the workplace, and chief information security officers need to approach this technology with caution and prepare with necessary security measures.
The tech behind GPT, or generative pretrained transformers, is powered by large language models (LLMs), or algorithms that produce a chatbot’s human-like conversations. But not every company has its own GPT, so companies need to monitor how workers use this technology.
People are going to use generative AI if they find it useful to do their work, says Michael Chui, a partner at the McKinsey Global Institute, comparing it to the way workers use personal computers or phones.
“Even when it’s not sanctioned or blessed by IT, people are finding [chatbots] useful,” Chui said.
“Throughout history, we’ve found technologies which are so compelling that individuals are willing to pay for it,” he said. “People were buying mobile phones long before businesses said, ‘I will supply this to you.’ PCs were similar, so we’re seeing the equivalent now with generative AI.”
As a result, there’s “catch up” for companies in terms of how the are going to approach security measures, Chui added.
Whether it’s standard business practice like monitoring what information is shared on an AI platform or integrating a company-sanctioned GPT in the workplace, experts think there are certain areas where CISOs and companies should start.
Start with the basics of information security
CISOs — already combating burnout and stress — deal with enough problems, like potential cybersecurity attacks and increasing automation needs. As AI and GPT move into the workplace, CISOs can start with the security basics.
Chui said companies can license use of an existing AI platform, so they can monitor what employees say to a chatbot and make sure that the information shared is protected.
“If you’re a corporation, you don’t want your employees prompting a publicly available chatbot with confidential information,” Chui said. “So, you could put technical means in place, where you can license the software and have an enforceable legal agreement about where your data goes or doesn’t go.”
Licensing use of software comes with additional checks and balances, Chui said. Protection of confidential information, regulation of where the information gets stored, and guidelines for how employees can use the software — all are standard procedure when companies license software, AI or not.
“If you have an agreement, you can audit the software, so you can see if they’re protecting the data in the ways that you want it to be protected,” Chui said.
Most companies that store information with cloud-based software already do this, Chui said, so getting ahead and offering employees an AI platform that’s company-sanctioned means a business is already in-line with existing industry practices.
How to create or integrate a customized GPT
One security option for companies is to develop their own GPT, or hire companies that create this technology to make a custom version, says Sameer Penakalapati, chief executive officer at Ceipal, an AI-driven talent acquisition platform.
In specific functions like HR, there are multiple platforms from Ceipal to Beamery’s TalentGPT, and companies may consider Microsoft’s plan to offer customizable GPT. But despite increasingly high costs, companies may also want to create their own technology.
If a company creates its own GPT, the software will have the exact information it wants employees to have access to. A company can also safeguard the information that employees feed into it, Penakalapati said, but even hiring an AI company to generate this platform will enable companies to feed and store information safely, he added.
Whatever path a company chooses, Penakalapati said that CISOs should remember that these machines perform based on how they have been taught. It’s important to be intentional about the data you’re giving the technology.
“I always tell people to make sure you have technology that provides information based on unbiased and accurate data,” Penakalapati said. “Because this technology is not created by accident.”
Hinge Health’s Enso product.
Courtesy: Hinge Health
Hinge Health, a provider of digital physical therapy services, filed to go public on Monday, the latest sign that the IPO market is starting to crack open.
Hinge Health uses software to help patients treat musculoskeletal injuries, chronic pain and carry out post-surgery rehabilitation remotely. The company’s revenue last year increased 33% to $390 million, according to its prospectus, and its net loss for the year narrowed to $11.9 million from $108.1 million a year earlier.
The IPO market has been quiet across the tech sector for the past three years, but within digital health it’s been almost completely silent, as companies have struggled to adapt to an environment of muted growth following the Covid-19 pandemic. No digital health companies held IPOs in 2023, according to a report from Rock Health, and last year the only notable offerings were Waystar, a health-care payment software vendor, and Tempus AI, a precision medicine company.
“We have many decades of work ahead,” Hinge Health CEO Daniel Perez said in the filing Monday. “We hope you join us on this journey.”
The company plans to trade on the New York Stock Exchange under the ticker symbol “HNGE.”
Perez and Gabriel Mecklenburg, Hinge Health’s chairman, co-founded the company in 2014 after experiencing personal struggles with physical rehabilitation, according to the company’s website.
Members of Hinge Health can access virtual exercise therapy and an electrical nerve stimulation device called Enso. The company claims its technology can help users improve their pain, reduce the need for surgery and cut down health-care costs.
The San Francisco-based company has raised more than $1 billion from investors including Tiger Global and Coatue Management, and it boasted a $6.2 billion valuation as of October 2021. The biggest outside shareholders are venture firms Insight Partners and Atomico, which own 19% and 15% of the stock, respectively, according to the filing.
Hinge Health’s dual class stock structure gives each share of Class B common stock 15 votes. Almost all of the Class B shares are owned by the founders and top investors.
Employees across more than 2,250 organizations, including Morgan Stanley, Target and General Motors, can access Hinge Health’s offerings. The company had more than 532,000 members as of Dec. 31, and more than 20 million people are eligible to enroll, the filing said.
Hinge Health declined to comment.
People wait in line for t-shirts at a pop-up kiosk for the online brokerage Robinhood along Wall Street after the company went public with an IPO earlier in the day on July 29, 2021 in New York City.
Spencer Platt | Getty Images
It was a bad day for tech stocks, and a brutal one for fintech.
As the Nasdaq suffered its steepest decline since 2022, some of the biggest losers were companies that sit at the intersection of Wall Street and Silicon Valley.
Stock trading app Robinhood tumbled 20%, bitcoin holder Strategy fell 17% and crypto exchange Coinbase lost 18%. Much of the slide in those three stocks was tied to the drop in bitcoin, which fell almost 5%, continuing its downward trajectory. The price of the leading cryptocurrency is now down 19% in the past month, falling after a big-post election pop in late 2024.
Beyond the crypto trade, online lenders and payments companies also fell more than the broader market. Affirm, which popularized buy now, pay later loans, dropped 11%, as did SoFi, which offers personal loans and mortgages. Shopify, which provides payment technology to online retailers, fell more than 7%.
JPMorgan Chase fintech analysts on Monday highlighted declining consumer confidence as a potential challenge for companies that rely on consumer spending for growth. In late February, the Conference Board’s Consumer Confidence Index slipped to 98.3 for the month, down nearly 7%, the largest monthly drop since August 2021. Walmart recently reported a shift away from discretionary purchases, underscoring the potential trouble.
“Our universe has modestly outperformed the S&P 500 since the election, but sentiment has soured of late on declining consumer confidence and signs of slowing discretionary spend,” the JPMorgan analysts wrote.
The fintech selloff follows a strong rally in the fourth quarter, driven by Fed rate cut expectations and hopes for a more favorable regulatory environment under the Trump administration.
WATCH: PayPal CEO Alex Chriss on opportunities for consumers and small businesses
Larry Ellison, chairman and co-founder of Oracle Corp., speaks during the Oracle OpenWorld 2017 conference in San Francisco on Oct. 1, 2017.
David Paul Morris | Bloomberg | Getty Images
Oracle issued quarterly results on Monday that trailed analysts’ estimates, but the company offered bullish comments on its cloud infrastructure segment.
Here is how Oracle did compared to LSEG consensus:
- Earnings per share: $1.47 adjusted vs. $1.49 expected
- Revenue: $14.13 billion vs. $14.39 billion expected
Revenue increased 6% from $13.3 billion in the same period last year. Net income rose 22% to $2.94 billion, or $1.02 a share, from $2.4 billion, or 85 cents a share, a year earlier. Revenue in Oracle’s cloud services business jumped 10% from a year earlier to $11.01 billion, accounting for 78% of total sales.
The company’s cloud infrastructure segment, which helps businesses move workloads out of their own data centers, has been booming due to demand for computing power that can support artificial intelligence projects. Oracle said revenue in its cloud infrastructure unit increased 49% from a year earlier to $2.7 billion.
“We are on schedule to double our data center capacity this calendar year,” Oracle Chair Larry Ellison said in a release. “Customer demand is at record levels.”
In January, President Donald Trump announced plans to invest billions of dollars in AI infrastructure in the U.S. in collaboration with Oracle, OpenAI and SoftBank. The first initiative of the joint venture, called Stargate, will be to construct data centers in Texas — an effort that is already underway, Ellison said during the announcement at the White House.
Oracle’s cloud and on-premises licenses business contributed $1.1 billion in revenue during the quarter, down 10% year over year.
Oracle also said it is increasing its quarterly dividend to 50 cents a share from 40 cents.
As of Monday’s close, the stock is down almost 11% year to date.
Oracle will hold its quarterly call with investors and will share its outlook at 5 p.m. ET.
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