The Encryption Dilemma: Why Developers Avoid It—And Why That Needs to Change

18
March 2025

AI Security vs. AI Performance: The Impossible Choice?

AI security and performance are locked in a never-ending battle.

On one side, AI needs real-time data retrieval to function seamlessly. On the other, encryption—our best defense against data breaches—throws a wrench into the process by slowing everything down.

The result?

Developers cut corners on security—not out of recklessness, but out of necessity.
Traditional encryption methods introduce delays, add complexity, and make applications downright frustrating to use.

AI is advancing at breakneck speed, but security is still an afterthought. That’s a dangerous game to play, especially when sensitive data is on the line.

So, the real question is: Do we have to choose between speed and security? Or can we have both?

We can. Let’s talk about how.

Why Developers Avoid Encryption in AI Systems

Let’s be real — encryption is a headache. It’s complex, resource-hungry, and puts a speed bump right in the middle of AI’s high-speed highway.

For AI systems that rely on blazing-fast similarity searches, encryption throws up three major roadblocks:

  • Latency: Encrypted searches take longer, slowing down real-time AI responses like a laggy video call.
  • Complexity: AI models rely on lightning-fast similarity searches, but encrypting vector embeddings throws off these computations, slowing everything down.
  • Infrastructure Costs: Encryption demands extra computing power, meaning higher expenses and more strained resources.

And here’s the real problem: Traditional vector databases weren’t built for security — they were built for speed. They store query logs unencrypted, have weak backup protections, and practically roll out the red carpet for attackers.

AI models need to compare millions of vectors in real time, so when encryption starts dragging down performance, developers take the easy route: skip security now, figure it out later.

The problem? Later never comes — until it’s too late.

The Myth of “Optional Encryption” — Why It’s Just as Bad as No Security

Rushing AI development without built-in security is like constructing a skyscraper without fire exits—it works until disaster strikes.

By the time encryption becomes a priority, the damage is often already done.

  • Unprotected embeddings create a direct attack surface, making it easier for attackers to extract sensitive data.
  • If embeddings sit unencrypted in memory, attackers don’t need full database access — they only need to extract embeddings to reconstruct proprietary information.
  • Query logs without encryption expose metadata, user behavior, and business-critical insights, providing an attack blueprint for adversaries.

Once data is stored unencrypted, retrofitting security is often impractical—it disrupts workflows, breaks model compatibility, and leaves security gaps.

Meanwhile, AI threats like embedding inversion and adversarial queries are evolving fast.
Skipping encryption isn’t a shortcut — it’s an open invitation for breaches.

The Real Consequences of Skipping AI Encryption

Without solid encryption, AI systems are sitting ducks for cyber threats. Here’s what can go wrong — and fast:

  • Data Exfiltration Attacks: Hackers manipulate AI models to siphon off confidential business data, turning your own system into an intelligence leak.
  • Vulnerable Backup Systems: AI training datasets without encryption are prime targets for ransomware, making backups more of a liability than a safeguard.
  • Embedding Inversion Attacks: Attackers reverse-engineer stored embeddings to reconstruct private data, exposing sensitive information that should have been locked down.

TThe stakes are high. A single security lapse can result in data poisoning, AI model manipulation, and irreversible reputational damage.

Potential Data Breach Scenario: A Financial Institution’s AI Trading System

A multinational financial firm deployed an AI-powered algorithmic trading system to analyze market trends and execute trades in real time. The system relied on a vector database storing years of trade execution data, client investment patterns, and proprietary trading strategies to generate high-frequency trades.

But there was a problem — the vector database wasn’t encrypted.

Hackers exploited this oversight, extracting sensitive embeddings that revealed:

  • Trade Execution Strategies: Competitors gained insights into the firm’s trading algorithms, allowing them to anticipate and counter trades.
  • Client Investment Profiles: Confidential investor preferences and risk assessments were exposed, violating privacy regulations.
  • Market Manipulation Risks: Stolen AI-driven insights allowed bad actors to manipulate trades, leading to financial losses in the millions.

The breach triggered regulatory investigations, eroded client trust, and forced the company to rebuild its AI trading infrastructure from scratch.

Had vector encryption been applied at rest and in transit, the attack could have been mitigated.

Breaking the Trade-Off — Encryption That Doesn’t Kill Performance

Traditionally, encryption was seen as a speed killer. Today, new approaches allow AI to stay fast while keeping data locked down.

Modern encryption techniques now allow AI models to maintain speed while keeping data locked down at all times.

How?

By integrating encryption directly into AI workflows rather than bolting it on later. Key innovations include:

  • Client-Side Encryption: Encrypting data before it even enters the database ensures sensitive information is never exposed.
  • Homomorphic & Searchable Encryption: Enables similarity searches on encrypted data, eliminating plaintext vulnerabilities.
  • Security-First AI Infrastructure: Encryption is baked into the system architecture, rather than being an afterthought.

AI security platforms like VectorX encrypt vector data before storage, allowing high-speed similarity searches without decryption—keeping sensitive embeddings protected without performance trade-offs.

Encryption doesn’t have to be a bottleneck.

When built into AI from day one, it delivers both uncompromising security and high-performance computing, eliminating the outdated choice between speed and protection.

The Bigger Picture — Encryption Alone Won’t Fix AI Security

Encryption is essential, but it’s not the silver bullet for AI security. Even if an AI system is fully encrypted, it’s still vulnerable to:

  • Insider Threats: Unauthorized personnel misusing access.
  • Unsecured APIs: Attackers exploiting weak API endpoints.
  • Advanced Cyber Threats: Sophisticated adversaries finding new ways to manipulate AI models.

A truly secure AI system requires multi-layered protection, including:

  • Zero-Trust Architecture: No implicit trust; every access request is verified continuously.
  • Strict Access Control Policies: Ensuring only authorized users have access.
  • Continuous Security Audits: Because threats evolve, and security should too.

AI security isn’t just an IT problem — it’s a business imperative. Without a proactive approach, companies risk turning their AI systems into a liability rather than an asset.

AI Teams Must Rethink Security as Part of the Design

AI systems need to be secure by design, not patched up later.

The good news?

The old trade-off between encryption and performance no longer applies. Advanced techniques like encrypted vector search allow AI to stay both fast and secure—without compromise.

With pre-storage encryption, secure computations, and privacy-preserving AI techniques, modern AI systems can handle high-speed queries while keeping sensitive data locked down. Security isn’t a bottleneck anymore — it’s a competitive edge.

🔐 How is your AI security strategy evolving?

Let’s discuss how AI can be both fast and secure—without compromise.

Gaurav Nigam

CBO, LaunchX Labs