Verax launches Protect to tackle AI data leak risks for firms

Verax AI has announced the global launch of Verax Protect, a solution designed for enterprise use to uncover and mitigate risks associated with Generative AI, with a particular focus on preventing the unintended leakage of sensitive data.

The adoption of Generative AI in workplaces is continuing to rise, with many businesses turning to such technology to enhance productivity. However, this rapid integration is exposing us to a number of significant risks, particularly the risk of data leakage. One key concern is that employees might input sensitive data or proprietary information into AI prompts, unintentionally sharing it with external third-party platforms.

Recent data shows that over 40% of businesses in the United States now have paid subscriptions to AI models, platforms, and tools, a substantial increase from just 5% in 2023. At the same time, 30% of organisations using AI have already experienced incidents related to AI security. These incidents are also becoming increasingly costly; the global average cost of a data breach reached an all-time high of USD $4.88 million in 2024, a 10% increase from the previous year.

Verax Protect is positioned to assist enterprises, including those operating in highly regulated sectors such as finance, healthcare, and defence, in harnessing the advantages of AI while maintaining compliance with data privacy and cybersecurity standards. The solution is designed to support these organisations in avoiding compromises in their stringent data protection regimes as they expand their use of AI.

Core features

Verax Protect features several core components designed to address key enterprise concerns. The solution aims to prevent proprietary and sensitive data from being inadvertently leaked into third-party AI tools. As AI platforms encourage users to input as much information as possible for optimal results, this has sometimes resulted in employees exposing confidential information to providers that their organisation has not fully vetted.

Another key capability is preventing AI tools from disclosing information to staff who are not authorised to access it. The growing use of AI for tasks such as generating reports and summarising company documents increases the risk that internal data could be overshared, placing sensitive material at risk of being viewed by unauthorised personnel.

Verax Protect also facilitates the enforcement of organisational AI policies by automating compliance measures. Traditionally, companies have relied on approaches such as employee training sessions and reminder pop-ups to ensure compliance, though these methods have proven largely ineffective. The automated approach aims to reduce the chances of both accidental and deliberate violations of internal policies.

In addition to these controls, the solution is designed to help organisations meet security and data protection certification requirements. Many regulatory frameworks, such as the General Data Protection Regulation (GDPR) in Europe or sector-specific laws in the United States, like HIPAA for healthcare and GLBA for financial services, mandate demonstrable efforts to safeguard sensitive data. The adoption of Generative AI presents new challenges around implementing and demonstrating such protections. Verax Protect provides tools to support compliance initiatives and document data safeguarding activities even as AI use increases.

Executive insight

The launch of Verax Protect is the latest step for the company, which was founded in 2023 by Leo Feinberg, Co-founder and Chief Executive Officer, and Oren Gev, Chief Technology Officer. The two previously founded CloudEndure, a cloud migration and disaster recovery business, was later acquired by Amazon Web Services for USD $250 million. 

Leo Feinberg, commented:

"Generative AI is a double-edged sword. It promises unprecedented gains in productivity, but it also introduces unprecedented risks. With Verax Protect, we're enabling enterprises to stay competitive by leveraging the power of AI without compromising the security, privacy, and compliance of their most sensitive data."

Verax AI also offers other products designed to govern AI usage, including Verax Explore and Verax Control. These tools are intended to help organisations monitor and manage both their internal and external use of AI technologies.

According to the company, Verax Protect operates as a real-time oversight and risk mitigation tool tailored to the requirements of modern enterprises. The system integrates with internal business systems and provides adjustable controls that reflect both technical and organisational policy requirements.

The increasing prevalence of AI adoption in regulated industries underlines the need for effective risk management and oversight. Verax Protect is designed with these requirements in mind, aiming to help businesses benefit from the productivity enhancements of AI while continuing to meet regulatory and security expectations.