Safeguarding the Future: Addressing Fraud, Misuse, and Ethical Vulnerabilities in AI-Driven Knowledge Management

Abstract While the integration of artificial intelligence into knowledge management holds transformative potential for businesses, it also introduces a range of ethical risks, security vulnerabilities, and opportunities for misuse. As AI-generated knowledge becomes an asset, it also becomes a target—susceptible to manipulation, misinformation, and bias. This chapter offers a sobering yet constructive analysis of what can go wrong in the evolution of AI-driven KM, including fraud, opacity, misuse of organizational data, and algorithmic bias. It also explores safeguards—technical, human, and institutional—that can protect enterprises. Emphasis is placed on the pivotal role of knowledge managers, AI governance boards, ethical design practices, and regulatory compliance in maintaining trust and integrity in AI-powered knowledge ecosystems.