Are Your Subcontractors Feeding Client Data Into AI Tools? (2026/692)

What happens when a subcontractor feeds your client data into an AI tool without telling you?

Shadow IT has always been a risk, but AI tools have made it significantly more serious.

In this episode, Charly covers:

Why subcontractors using free-tier AI tools on client data is a growing problem
How the Australian Privacy Act makes you responsible for data your third parties handle
The difference between using AI as a reference and handing over actual business data
Practical steps to add AI usage clauses to your subcontractor agreements

The fix is not to ban AI. It is to ask the right questions, set clear boundaries and make AI usage part of your regular business conversations.

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