Reasons why AI should not be used to generate passwords
Artificial intelligence is now being used for everything from writing emails to generating code. It’s quick, convenient and often impressive. So it’s no surprise that some people are asking AI tools to generate passwords for them.
On the surface, it seems sensible. Ask for a “strong password” and you’ll usually get something that looks complex - upper and lower case letters, numbers, symbols. Job done?
Not quite.
When it comes to cyber security, how something is generated matters just as much as how it looks.
AI Works on Prediction - Not True Randomness
AI systems are built on predictive models. They analyse patterns in data and generate responses based on probabilities. That’s how they produce human-like text.
But passwords should not be predictable.
A secure password should be generated using cryptographic randomness - not pattern-based prediction. Even if the risk appears small, using a system designed to replicate patterns introduces unnecessary exposure.
If an attacker understands how certain AI models structure output, it may reduce the effective unpredictability of the passwords they generate.
When protecting business email accounts, Microsoft 365, finance systems, remote access tools and cloud platforms, “probably secure” isn’t good enough.
Public AI Tools Aren’t Password Managers
There’s another important issue: environment.
Public AI platforms are not designed to securely create and store credentials. They are not password vaults. They are not hardened security tools. They are general-purpose systems.
Generating business passwords inside shared AI environments raises questions such as:
- Where is that data processed?
- Is any of it logged?
- Is it tied to your account history?
- Could it be exposed through user error or reuse?
Even if the risk is low, there is simply no need to take it.
Dedicated password managers exist for a reason.
The Real Risk for Small Businesses
Weak password practices remain one of the leading causes of cyber incidents affecting UK small and medium-sized businesses.
Common problems include:
- Reusing passwords across multiple systems
- Creating “complex” passwords that follow predictable patterns
- Storing passwords in spreadsheets or notes
- Sharing credentials between staff
AI-generated passwords don’t fix these issues. In fact, they can create a false sense of security because they look technical and random.
Cyber security is not about appearances. It’s about reducing risk at every layer.
What You Should Be Doing Instead
If you want strong password protection for your business, the approach is straightforward:
- Use a reputable password manager
- Generate passwords using built-in cryptographic tools
- Store them in an encrypted vault
- Enable multi-factor authentication wherever possible
- Avoid password reuse across systems
When implemented properly, this dramatically reduces the likelihood of unauthorised access.
Password Security Is Part of the Bigger Picture
Passwords are often the first line of defence. If they fail, everything behind them becomes exposed.
At CED Technology, we help businesses strengthen their cyber security with practical, sensible protection. That includes secure password management, endpoint protection, Microsoft 365 security, data backup and ongoing IT support.

If you’re unsure whether your current password practices are protecting your business properly, now is a good time to review them.
Because when it comes to cyber security, convenience should never outweigh control.
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