UK businesses unaware of how data is handled overseas AI tools

New research by Harbr Data indicates that most large UK companies are unaware of how sensitive data is handled when processed by artificial intelligence (AI) systems overseas. A survey of senior technology leaders at companies with revenues exceeding £100 million found that 61% do not fully understand international data-handling processes, posing a significant challenge for corporate boards.

International data transfers out of the UK are routine, with almost three-quarters of respondents reporting weekly data transfers and one-third reporting daily transfers. The lack of clarity creates regulatory and compliance risks, particularly concerning data residency, cybersecurity and data protection rules, while more severe threats include data leaks or the malicious use of information. 

The survey highlights that confidence in data management varies significantly by region: while 70% and 62% of business leaders are confident in UK and EU standards, respectively, these figures drop to 31% in North America and 12% in the Asia-Pacific region.

Additional concerns involve the use of open-source components and low-cost models of unclear origin, which may still connect to original source models despite being hosted on Western cloud providers. 

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