From bans to conditional approval
In April 2023, Samsung Electronics confirmed internally that engineers in its semiconductor division had entered source code and meeting notes into ChatGPT. In early May, the company restricted generative AI use on company devices and its internal network, and several global financial companies and other businesses took similar steps around the same time.
The bans did not last. On August 13, 2024, Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS) announced the Financial Sector Network Separation Improvement Roadmap, opening the way for financial companies to use generative AI and SaaS. On November 27 of the same year, they designated the first 10 innovative financial services using generative AI, from 9 financial companies, and 74 companies filed 141 applications during the application period alone. Each designation is conditional on complying with security measures.
The question has changed. It is no longer “Should we block generative AI?” but “Should we allow it while controlling what data goes where, and under which account?”
Shadow AI in numbers
Shadow AI refers to AI tools that employees use for work without the organization’s approval or security review.
| Metric | Figure | Source |
|---|---|---|
| Share of security incidents involving shadow AI | 20% (2025) → 43% (2026) | IBM Cost of a Data Breach 2026 |
| Average cost of breaches involving shadow AI | $5.39 million (previous year: $4.63 million) | IBM Cost of a Data Breach 2026 |
| Share of breached organizations without an AI governance policy | 68% | IBM Cost of a Data Breach 2026 |
| Share of generative AI pastes made from unmanaged (personal) accounts | 82% | LayerX Enterprise AI & SaaS Data Security Report 2025 |
The IBM report is based on a Ponemon Institute study of 602 organizations across 17 industries in 16 countries that experienced a breach between March 2025 and February 2026. The LayerX figure is based on browser telemetry from that company’s customers, so interpret it with the sample’s characteristics in mind.
Both sources point in the same direction. Data is leaving not as files but as snippets of text, through browser input fields.
Three gaps existing control layers miss
1. Traffic exempted from decryption
Network DLP and an SWG (Secure Web Gateway) need TLS decryption before they can inspect what is being sent. Traffic exempted from decryption for operational reasons, such as personal banking and healthcare sites or apps that use certificate pinning, is not inspected for content. As the exception list grows, the blind spot widens with it.
2. QUIC (HTTP/3) traffic
HTTP/3 runs on QUIC, and QUIC uses UDP rather than TCP (RFC 9000, RFC 9114). In environments that run only TCP-based proxies, UDP 443 traffic can bypass the inspection path. The Chromium issue tracker has a 2015 request to add a policy for this reason, and the QuicAllowed policy was introduced afterward.
If your proxy does not support QUIC inspection, the simplest measure is to turn off QUIC in managed browsers. In environments that do not use Windows Group Policy, the following registry values apply the same setting.
Windows Registry Editor Version 5.00
[HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Google\Chrome]
"QuicAllowed"=dword:00000000
[HKEY_LOCAL_MACHINE\SOFTWARE\Policies\Microsoft\Edge]
"QuicAllowed"=dword:00000000
You can confirm the setting at chrome://policy or edge://policy. If you also control UDP 443 at the perimeter firewall, the browser falls back to TCP-based HTTP/2 or HTTP/1.1. Some services may feel slower as a result, so apply the change through your change management process.
3. Same domain, different accounts
Many SaaS and generative AI services use the same domain for personal and enterprise accounts. A policy based only on the destination domain has difficulty distinguishing “input into an approved enterprise tenant” from “input into a personal account.” The figure in the table above, that 82% of pastes came from unmanaged accounts, shows how large this blind spot is.
Visibility by control layer
| Control layer | Visibility available | Areas prone to blind spots |
|---|---|---|
| Network (SWG, CASB, network DLP) | Destination domain, decrypted HTTP requests | Decryption-exempt traffic, unhandled QUIC traffic, telling accounts apart within the same domain |
| Endpoint DLP | File movement, OS clipboard, storage media | Context: which web app, and which account, the input is going to |
| Browser layer | Plaintext of input, paste and upload events; tab URL and signed-in account context | Unmanaged browsers, desktop-only apps, API and CLI calls |
No single layer closes these gaps on its own. The browser layer’s strength is that it has access to the plaintext before encryption, along with the service and account it is being entered into.
Design principles for browser-layer control
1. Decide per event, before transmission
Paste, keyboard input, file upload and drag-and-drop are separate events. You need to evaluate each event before the request is sent to the server to avoid after-the-fact response, where data is detected only after it has already left.
2. Combine account and tenant context
The same sentence should be allowed when it is entered into an approved enterprise tenant, and should trigger a warning or a block when it is entered into a personal account. The basic unit of policy is not the “domain” but the combination of “service + account + data type.”
3. Tiered responses, not blocking alone
| Response | Example | Expected effect |
|---|---|---|
| Allow + record | Approved enterprise tenant, no sensitive data detected | Keeps the workflow intact, makes usage visible |
| Warn + justification | Unapproved service, or text likely taken from internal documents | Prompts users to make the call themselves, reduces the incentive to work around controls |
| Masking | Identifier patterns such as resident registration numbers or account numbers detected | Removes only the identifying data so the task can still be done |
| Block | Bulk paste of source code or customer data, file upload to a personal account | Closes high-risk leak paths |
Block across the board, and users move to personal devices while the organization loses visibility.
4. Log metadata, not raw prompts
Storing raw prompt text as is turns the log server into a new store of sensitive data. It is safer to log detection type, action taken, target service, user and time by default, and to keep raw text only as an exception, with controlled retention periods and access rights.
5. Close bypass paths as well
Browser-layer control is effective only inside managed browsers. Apply network policy so that generative AI domains are reachable only from managed browsers, and cover desktop-only apps and API call paths with endpoint and network policy.
Rollout order: visibility, coaching, enforcement
Turn on blocking policies from day one, and false positives and user complaints pile up all at once. The order below is a recommended flow that spreads the operational load so the controls can take hold.
| Stage | Operating mode | Goal | Output |
|---|---|---|---|
| 1. Visibility | Record only | Understand which AI services are used, with which accounts and which data types | Usage records by service, account and data type |
| 2. Coaching | Warn + justification | Steer users to approved services and make them aware of the policy | Approved service list, exception request flow |
| 3. Enforcement | Masking, block | Control high-risk data types and personal-account paths first | Enforcement policy by data type |
| 4. Operations | Regular tuning | Tune out false positives, add new AI services | Quarterly policy review records |
Stage 1 results give you an evidence base for designing the policies in stage 2 onward. Blocking policies built without usage records mostly end up either excessive or leaving gaps.
In closing
Generative AI has moved from something to ban to something to manage. The key to managing it lies in the moment before data is encrypted and sent out over the network, the moment the user presses paste. The browser is the closest point to that moment.
ZensLab offers BrowZen, a client-based secure browser that makes the browser a policy enforcement point (PEP). For the basic concept of a secure browser and how it differs from other approaches such as VDI and RBI, read What a Secure Enterprise Browser Is.
References
- Bloomberg, Samsung Bans ChatGPT, Google Bard, Other Generative AI Use by Staff After Leak (2023-05-02) - https://www.bloomberg.com/news/articles/2023-05-02/samsung-bans-chatgpt-and-other-generative-ai-use-by-staff-after-leak
- Financial Services Commission, Press release: Announcement of the Financial Sector Network Separation Improvement Roadmap (2024-08-13) (in Korean) - https://www.fsc.go.kr/no010101/82885
- Financial Services Commission, Press release: Innovative Financial Services Using Generative AI Get Underway (2024-12-09) (in Korean) - https://www.fsc.go.kr/no010101/83554
- IBM, Cost of a Data Breach Report 2026 - https://www.ibm.com/reports/data-breach
- LayerX, Enterprise AI and SaaS Data Security Report 2025 - https://go.layerxsecurity.com/hubfs/LayerX_Enterprise_AI_and_SaaS_Data_Security_Report.pdf
- IETF, RFC 9000 QUIC - https://www.rfc-editor.org/rfc/rfc9000
- IETF, RFC 9114 HTTP/3 - https://www.rfc-editor.org/rfc/rfc9114
- Google, Chrome Enterprise Policy QuicAllowed - https://chromeenterprise.google/intl/en_us/policies/quic-allowed/
- Chromium Issue 41159437, Disable experimental QUIC protocol via Group Policy - https://issues.chromium.org/issues/41159437
