1 in 12 Employees Use at Least One Chinese GenAI Tool at Work Reveals New Analysis of 14,000 End Users
Among the 1,059 users who engaged with Chinese GenAI tools, Harmonic Security detected 535 incidents of sensitive data exposure. The majority of exposure occurred via DeepSeek, which accounted for roughly 85% of the total, followed by Moonshot Kimi, Qwen, Baidu Chat and Manus.
In terms of what sensitive data was exposed, code and development artifacts represented the largest category, making up 32.8% of the total. This included proprietary code, access keys, and internal logic. This was followed by mergers & acquisitions data (18.2%), personally identifiable information (PII) (17.8%), financial information (14.4%), customer data (12.0%), and legal documents (4.9%). Engineering-heavy organizations were found to be particularly exposed, as developers increasingly turn to GenAI for coding assistance, potentially without realizing the implications of submitting internal source code, API keys, or system architecture into foreign-hosted models.
Alastair Paterson, CEO and co-founder Harmonic Security comments: 'All data submitted to these platforms should be considered property of the Chinese Communist Party given a total lack of transparency around data retention, input reuse, and model training policies, exposing organizations to potentially serious legal and compliance liabilities. But these apps are extremely powerful with many outperforming their US counterparts, depending on the task. This is why employees will continue to use them but they're effectively blind spots for most enterprise security teams.'
Paterson continues: 'Blocking alone is rarely effective and often misaligned with business priorities. Even in companies willing to take a hardline stance, users frequently circumvent controls. A more effective approach is to focus on education and train employees on the risks of using unsanctioned GenAI tools, especially Chinese-hosted platforms. We also recommend providing alternatives via approved GenAI tools that meet developer and business needs. Finally, enforce policies that prevent sensitive data, particularly source code, from being uploaded to unauthorized apps. Organizations that avoid blanket blocking and instead implement light-touch guardrails and nudges see up to a 72% reduction in sensitive data exposure, while increasing AI adoption by as much as 300%."
The data for this analysis was collected using insights from Harmonic Security Protect, which monitors user behavior around SaaS-based GenAI apps. All data was anonymized and sanitized prior to analysis. The dataset included file upload volumes, app usage frequency, and prompt-level detections of sensitive content exposure.
To read the full report, please go to: http://www.harmonic.security/resources/code-red-analyzing-chinese-based-app-use
About Harmonic
Harmonic Security lets your teams adopt AI tools safely by protecting sensitive data in real time with minimal effort. It gives you full control and stops leaks so your teams can innovate confidently.
For more information, visit
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNN
a few seconds ago
- CNN
Watchmaker Swatch apologises for ‘slanted eye' ad after online backlash in China
Swiss watchmaker Swatch has issued an apology and pulled ads featuring images of an Asian male model pulling the corners of his eyes up and backwards in a 'slanted eye' pose. The images for the Swatch Essentials collection were widely condemned online in China, where many comments said they appeared to mimic racist taunts about Asian eyes. In an apology posted in both Chinese and English on its official account on the Weibo social media platform Saturday, Swatch said that it has 'taken note of the recent concerns' and removed all related materials worldwide. 'We sincerely apologise for any distress or misunderstanding this may have caused,' the statement said. It also posted the same apology on Instagram. Swatch Group did not immediately respond to a Reuters request for further comment. Swatch, which also makes Omega, Longines and Tissot watches, is heavily exposed to China for revenue, with around 27% of the group's sales last year coming from the China, Hong Kong and Macau region. Revenue for the watchmaker last year slumped 14.6% to 6.74 billion Swiss francs ($8.4 billion) in 2024, hit by a downturn in demand in China, where Swatch said it was seeing 'persistently difficult market conditions and weak demand for consumer goods overall'.
CNBC
a few seconds ago
- CNBC
Pop Mart's Labubus boost China's soft power as Beijing brands find global appeal
For years, China had an image problem it couldn't shake off — synonymous with cheap exports, heavy censorship, and a state shrouded in secrecy and scandal. That has been changing as the country strives to burnish its image, rising in soft power rankings, with domestic businesses helping Beijing secure a significant facelift. Chinese coffee chains are popping up in New York. Chinese video games are generating billions in revenue. Even Chinese makeup, or "c-beauty," companies are expanding into global markets. But the most surprising factor boosting China's cultural rise isn't a flying car, an AI model, or a bestselling game — it's a toy. Labubus are everywhere: Pop Mart's ugly-cute $30 keychain has been spotted on the bags of Rihanna and K-pop band Blackpink's Lisa, with the plushie attracting hundreds of thousands of fans worldwide. Just a few weeks ago, Pop Mart opened its first store in Germany — the latest addition to its more than 500 stores across the globe. Pop Mart's viral blind boxes — items sealed in mystery packages — have become the hallmark of one of China's most aggressive international growth stories. The company has forecast a 350% year-on-year jump in profit in the first half of the year. Goldman Sachs estimates that over the long term, Pop Mart's sales could reach $11.3 billion globally, the same level as Lego sales. The company is even taking on Japanese legacy brands such as Sanrio and Bandai. In 2024, Pop Mart sales rose 107%, while Sanrio, home to Hello Kitty, reported a 45% jump. Pop Mart's success isn't a fluke. It's part of a deliberate strategy that's been capturing consumers' hearts. With several proprietary offerings and the addictive appeal of the blind box, the brand has tapped into the sweet spot of emotional spending at a time of geopolitical and economic uncertainty. "One of the key themes is IP, or chasing small pleasures," said Michelle Cheng, co-Lead of the Asia consumer research team at Goldman Sachs. "It's something the young generation loves — not just in China or Asia, but globally." Pop Mart isn't alone in boosting China's soft power. Video games, once tightly regulated by China's government, are now exploding in popularity. Black Myth Wukong, based on the Chinese folk story "Journey to the West," sold 20 million units in its first month globally, making it one of the fastest-selling titles of all time. Genshin Impact, a "gacha" game, where players spend in-game currency or real-world money to obtain virtual goods (named after Japanese "gachapon"), made $2 billion in its first year on the market, according to market intelligence firm Sensor Tower. It now generates more revenue outside China than at home, with players in Japan and the U.S. leading the charge, according to data by Statista. Home-grown innovators are transforming China's image. Consultancy Brand Finance ranked the country second in its global soft power index this year, up a spot from 2024, overtaking the UK for the first time and sitting just behind the U.S. Brand Finance attributed the jump to China's strategic efforts at enhancing its global image, focus on sustainable development, stronger brands, as well as the country reopening to visitors after the pandemic. "Finally, China has become visible, and young people are no longer attaching negative brand perceptions to China," said Yaling Jiang, a consumer analyst. "The best outcome of these consumer products is that people can see through the negative filter of them being Chinese and see them for what they are." While the perceptions about the country are changing fast, it remains to be seen if a state that has historically taken a top-down approach to reshaping its image can allow its brands to speak for themselves.
Business Wire
29 minutes ago
- Business Wire
500 Global and UNDP Launch New Innovation Programs to Boost Africa's Ecosystem
BUSINESS WIRE)-- 500 Global, one of the world's most active venture capital firms 1, today announced the launch of their first founder programs in Nairobi, in collaboration with the United Nations Development Programme (UNDP), to support the pan-African ecosystem 2. Together, 500 Global and UNDP hope to provide African founders the insights and expertise to navigate the evolving global landscape and capitalize on opportunities to scale, by providing support, mentorship, as well as their global network of resources. Share Nairobi will serve as host for three programs run by 500 Global in partnership with UNDP this year. The programs are co-designed to support startups at every stage—from early to growth—by offering tailored acceleration programs appropriate to each startup's level of maturity. The first program, the Pre-Acceleration Academy, will support founders at the earliest stage of their journey through an in-person program running October 6 - 12th. The second program, the Sustainable Innovation Seed Accelerator, will provide support for seed-stage founders who are developing sustainable innovation solutions. The third program, 500 Global's Bootcamp for Accelerator Managers, is designed to upskill accelerator managers and incubators within UNDP's timbuktoo initiative, who are committed to advancing innovation across Africa. The three programs aim to support continued ecosystem development while broadening opportunities to invest in African founders across the continent. 500 Global's Africa leadership aims to work with founders, investors, and institutions like UNDP, to become a more active participant within the African innovation ecosystem. ' With the launch of these programs, we are excited for 500 Global to deepen our work with African entrepreneurs and to help them adapt to this new global landscape. We are looking forward to working closely with partners like UNDP across the continent to provide the infrastructure for sustained innovation and growth. ' - Mareme Dieng, Partner, 500 Global Together, 500 Global and UNDP hope to provide African founders the insights and expertise to navigate the evolving global landscape and capitalize on opportunities to scale, by providing support, mentorship, as well as their global network of resources. ' At UNDP, we believe that Africa's future lies in the ingenuity of its people. Through this partnership with 500 Global, we are not just investing in startups, we are investing in innovators driving Africa's sustainable transformation. By equipping entrepreneurs with the tools, networks, and mentorship they need, we are building a resilient ecosystem that will power inclusive growth and deliver on the promise of the Sustainable Development Goals', said Ahunna Eziakonwa, Assistant UN Secretary General and Director of UNDP Regional Bureau for Africa. Applications are open for all three programs. Founders can learn more and apply through the Pre-Acceleration Academy and Sustainable Innovation Accelerator Program pages. About 500 Global 500 Global is a multi-stage venture capital firm with $2.1B in assets under management 3 that invests in founders building fast-growing technology companies. We focus on markets where technology, innovation, and capital can unlock long-term value and drive economic growth and development. We work closely with key stakeholders and advise governments on how best to support entrepreneurial ecosystems and economic development in emerging markets. 500 Global has backed over 5,000 founders representing more than 3,000 companies operating in 80+ countries. We have invested in more than 35+ companies valued at over $1 billion and 150+ companies valued at over $100 million (including private, public, and exited companies). Our 175+ team members are located in more than 25 countries and bring experience as entrepreneurs, investors, and operators from some of the world's leading technology companies. 500 Global made its first investment in Africa in 2011. Since then, 500 has invested in and supported 100+ portfolio companies headquartered in Africa, notably backing Chipper Cash, Smile Identity, Stitch, Money Fellows and Asaak. Beyond direct investment, 500 Global has been a partner in ecosystem development, working closely alongside governmental entities, like the Information Technology Industry Development Agency (ITIDA) and Gesellschaft fur Internationale Zusammenarbeit (GIZ), to develop education for accelerator managers, in addition to providing infrastructure and resources for an additional 150+ Egyptian founders since 2022. About UNDP UNDP is the leading United Nations agency fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and planet. timbuktoo is a pan-African initiative, led by UNDP, with a focus on unlocking Africa's innovation potential by supporting entrepreneurship and inclusive economic growth. It helps high-potential startups in key sectors through tailored funding, expert mentorship, and access to global markets. Learn more at or follow @UNDP and @UNDPAfrica on social media. THE CONTENT IN THIS PRESS RELEASE IS PROVIDED FOR GENERAL INFORMATIONAL OR EDUCATIONAL PURPOSES ONLY. 500 GLOBAL MAKES NO REPRESENTATIONS AS TO THE ACCURACY OR INFORMATION CONTAINED HEREIN AND WHILE 500 GLOBAL HAS TAKEN REASONABLE STEPS TO ENSURE THAT THE INFORMATION CONTAINED HEREIN IS ACCURATE AND UP-TO-DATE, NO LIABILITY CAN BE ACCEPTED FOR ANY ERROR OR OMISSIONS. UNLESS OTHERWISE STATED IN THIS PRESS RELEASE, ANY PREDICTIONS, FORECASTS, CONCLUSIONS, VIEWS OR OPINIONS EXPRESSED REPRESENT THE CURRENT VIEW AND THINKING OF 500 GLOBAL WITH REGARD TO THE SUBJECT MATTER THEREIN BASED ON INTERNAL DATA AGGREGATED ACROSS ALL 500 GLOBAL FUNDS AS OF OCTOBER 23, 2024 AND/OR ANALYSIS WHICH HAS NOT BEEN INDEPENDENTLY VERIFIED, AND WHICH IS SUBJECT TO CHANGE AT ANY TIME. UNDER NO CIRCUMSTANCES SHOULD ANY OF THE CONTENT IN THIS PRESS RELEASE BE CONSTRUED AS LEGAL, TAX OR INVESTMENT ADVICE FROM 500 GLOBAL OR ANY OF ITS AFFILIATES. 500 GLOBAL DOES NOT GUARANTEE ANY FUTURE RESULTS FOR ANY DECISIONS MADE BASED IN WHOLE OR IN PART ON THE CONTENT OR INFORMATION CONTAINED HEREIN. ALL READERS OF THIS PRESS RELEASE SHOULD CONSULT WITH THEIR OWN COUNSEL, ACCOUNTANT OR OTHER PROFESSIONAL ADVISORS BEFORE TAKING ANY ACTION IN CONNECTION WITH THIS PRESS RELEASE. UNDER NO CIRCUMSTANCES SHOULD ANY INFORMATION OR CONTENT IN THIS PRESS RELEASE, BE CONSIDERED AS AN OFFER TO SELL OR SOLICITATION OF INTEREST TO PURCHASE ANY SECURITIES ADVISED BY 500 GLOBAL OR ANY OF ITS AFFILIATES OR REPRESENTATIVES. FURTHER, NO CONTENT OR INFORMATION CONTAINED IN THIS PRESS RELEASEIS OR IS INTENDED AS AN OFFER TO PROVIDE ANY INVESTMENT ADVISORY SERVICE OR FINANCIAL ADVICE BY 500 GLOBAL. UNDER NO CIRCUMSTANCES SHOULD ANYTHING HEREIN BE CONSTRUED AS FUND MARKETING MATERIALS BY PROSPECTIVE INVESTORS CONSIDERING AN INVESTMENT INTO ANY 500 GLOBAL INVESTMENT FUND. UNDER NO CIRCUMSTANCES SHOULD ANY CONTENT BE INTERPRETED AS TESTIMONIALS OR ENDORSEMENT OF THE INVESTMENT PERFORMANCE OF ANY 500 GLOBAL FUND BY A PROSPECTIVE INVESTOR CONSIDERING AN INVESTMENT INTO ANY 500 GLOBAL INVESTMENT FUND. ____________________ 1 Based on PitchBook's 2024 Global League Tables. 2 The programs are supported by additional partners, such as Shell Foundation, in addition to UNDP. 3 ASSETS UNDER MANAGEMENT (AUM) CALCULATIONS ARE BASED ON INTERNAL ESTIMATES AS OF MARCH 31, 2025.
