Trade secrets when using AI are a risk that arises from entering sensitive company information into a third-party tool. Calculations, contracts, technical documentation, customer lists, and undisclosed plans lose their protection if they get outside the company's control – a trade secret is protected only for as long as the company takes reasonable measures to keep it confidential. Before deployment, the provider's terms need to be checked: whether the entered data is used for further training, how long it is retained, and where it is processed. Business versions of tools generally handle these questions better than free accounts. It is equally important to specify to employees what must not be entered – without this rule, shadow use arises outside any control.
See also: Shadow AI, Internal AI usage policy, Data processing agreement.
