By NHI Mgmt Group Editorial TeamDomain: AI SecuritySource: VirtueAIPublished May 26, 2026

TL;DR: GPT-4.5 reduces hallucinations and improves privacy resilience, according to VirtueAI’s red-teaming analysis, while Claude 3.7 performs better on regulatory compliance, adversarial prompt resistance, and blocking malicious code generation. The practical issue is no longer model quality alone, but how organisations govern misuse, refusal behaviour, and multi-modal attack surfaces across AI deployments.


At a glance

What this is: This is a comparative red-teaming analysis of GPT-4.5 and Claude 3.7 that maps strengths and weaknesses across hallucination, compliance, privacy, code generation, multi-modal attacks, and bias.

Why it matters: It matters because AI governance teams need to test models against misuse, policy violations, and data leakage before deployment, not after users and attackers expose those gaps.

👉 Read VirtueAI's analysis of GPT-4.5 vs Claude 3.7 red-teaming results


Context

AI red-teaming is the process of intentionally probing a model to see where safety, compliance, privacy, and security controls fail under realistic misuse. In this case, the key issue is not whether a model can answer questions well, but whether its behaviour stays within acceptable governance boundaries when prompted in harmful, indirect, or multi-modal ways.

For practitioners, the article sits at the intersection of AI governance, model risk, and security operations. It also has a clear identity dimension where models are embedded into agentic workflows or connected to tools and data sources, because those integrations turn model behaviour into an access and data-governance problem rather than a purely product-quality issue.

The starting position in this article is typical of enterprise AI adoption: teams test for quality first, then discover that safety, privacy, and policy controls vary sharply by model and prompt pattern. That sequencing is increasingly inadequate once AI systems are allowed to generate code, process sensitive data, or influence decisions.


Key questions

Q: How should organisations test frontier models before production use?

A: They should test frontier models against the actual risks their workflows create, not just benchmark scores. That means separate evaluations for hallucination, privacy leakage, harmful code generation, refusal behaviour, and multi-modal prompt injection. Results should feed deployment approval, monitoring thresholds, and escalation paths. A model that looks safe in one test can still be weak in a different risk class.

Q: Why do AI governance programmes need separate tests for code and privacy risk?

A: Because a model can fail in one domain while appearing strong in another. Privacy testing asks whether the model reveals sensitive data, while code testing asks whether it can be induced to produce harmful or exploitable instructions. Those are different control problems, so they need different test cases, review criteria, and sign-off owners.

Q: What do security teams get wrong about AI safety testing?

A: The common mistake is treating AI safety testing as if it were just another security scan. It is not. Safety testing is about proving how a model or agent fails under pressure, while traditional security tooling is about who can access the system. Those are different governance questions and need different evidence.

Q: How should teams govern AI-assisted coding when the model writes most of the implementation?

A: Teams should govern the specification first, then the code. The PRD should define architecture, constraints, tests, and acceptance criteria before generation begins, because that is where ambiguity is controlled. Once work starts, the document must stay current so reviewers can validate decisions, not just inspect output after the fact.


Technical breakdown

How red-teaming exposes model-specific failure modes

Red-teaming is structured adversarial testing, not casual prompt experimentation. It measures how a model behaves under conflicting instructions, misleading context, policy boundary tests, and adversarial content designed to trigger unsafe outputs. In practice, the method should cover refusal behaviour, factual accuracy, privacy leakage, code generation, and multi-modal inputs, because each risk class fails differently. A model that is strong in one dimension can still be weak in another, which is why red-teaming needs scenario diversity rather than a single benchmark. The article’s results show that governance cannot rely on a general safety label; it has to be evidence-based and use-case-specific.Practical implication: Build red-teaming around the highest-risk deployment paths, not generic model scoring.

Practical implication: Build red-teaming around the highest-risk deployment paths, not generic model scoring.

Why code generation and privacy risks diverge

Code generation risk and privacy risk are related but not identical. A model can resist direct privacy attacks while still producing harmful code, just as it can refuse malicious code while remaining vulnerable to indirect data extraction. The difference lies in the type of policy boundary being tested. Code safety depends on whether the model can be induced to produce executable or exploitable instructions, while privacy safety depends on whether it reveals sensitive training, prompt, or user data. For agentic systems, the risk becomes sharper because generated code or extracted content can be acted on by downstream tools without additional human review.Practical implication: Test privacy and code safety as separate control domains.

Practical implication: Test privacy and code safety as separate control domains.

Multi-modal prompts expand the attack surface

Multi-modal attacks use images, layout artifacts, embedded text, or cross-modal instructions to bypass text-only safety assumptions. That matters because many governance programmes still test chat interfaces as if the prompt were the only input channel. Once a model can ingest images or documents, the attack surface includes hidden instructions, misdirection, and prompt injection carried through non-text content. The article suggests that visual robustness can lag behind text robustness, which means enterprises need controls that inspect all inbound modalities before model execution. For security teams, this is the same structural problem seen in other trust-boundary failures: the input channel is broader than the policy engine.Practical implication: Treat every supported modality as a separate control boundary.

Practical implication: Treat every supported modality as a separate control boundary.


NHI Mgmt Group analysis

Model red-teaming is becoming a governance control, not a lab exercise. The article shows that safety, compliance, privacy, and code-generation weaknesses can diverge sharply between two frontier models. That means AI risk management has to be evidence-led and scenario-specific rather than based on brand reputation or generic benchmark performance. For AI governance teams, red-teaming results should feed approval, monitoring, and escalation decisions before deployment.

AI systems now need identity-aware controls when they can generate actions or access data. Once a model is connected to tools, files, APIs, or internal workflows, its behaviour becomes part of the enterprise access model. That creates an identity bridge into agentic AI security: model outputs can trigger privileged actions, and model inputs can expose sensitive context. Practitioner conclusion: treat AI tool access, prompt context, and downstream permissions as one control surface.

Code-generation risk is a distinct operational hazard that many governance programmes under-measure. A model that produces harmful code does not need to be broadly unsafe to create material exposure. The issue is whether the model can cross the line from assistance into exploit enablement, insecure scripting, or automation of harmful activity. That should push security, application, and AI teams to test code output separately from content moderation. Practitioner conclusion: apply explicit controls around generated code before it reaches execution paths.

Multi-modal safety gaps point to a growing ‘input trust gap’. Many organisations still assume text prompts are the main attack vector, but images and document-based prompts can carry hidden instructions or adversarial framing. That is a governance failure because the model boundary is wider than the chatbot interface. Practitioner conclusion: review every model input channel as a potential policy bypass path.

Human-in-the-loop assurance: For regulated use cases, the most important question is not whether the model can answer, but whether a human review step still meaningfully constrains output before decisions or code execution. That is where model governance becomes operational risk control. Practitioner conclusion: require human approval for high-impact outputs and tool-triggering actions.

What this signals

AI governance teams should expect red-teaming to become a formal approval input, especially where models can generate code, process sensitive data, or connect to tools. The practical shift is toward continuous evaluation, not one-time model selection, because risk varies by prompt class, modality, and deployment context.

Input trust gap: The article reinforces a simple programme-level lesson. Once models accept images, documents, and tool calls, the control perimeter expands beyond the chat window, so security teams need policy checks at every intake point and lifecycle controls around any credentials or tokens the model can reach.

For identity-heavy AI deployments, the most relevant question is who or what can act on the model’s output. That is where lifecycle governance for NHIs and tool-scoped permissions become central to AI risk reduction, not just supporting controls.


For practitioners

  • Separate safety tests by risk domain Run distinct evaluation suites for hallucination, privacy leakage, code generation, refusal behaviour, and multi-modal prompt injection so one passing score does not hide another failure mode.
  • Gate tool access behind model-specific approvals Do not let every model connect to the same tools, files, or APIs. Tie each integration to a documented approval path, a least-privilege scope, and explicit logging for downstream actions.
  • Test generated code as untrusted output Treat model-produced scripts, snippets, and configuration as untrusted until they pass secure review, static analysis, and change-control checks.
  • Expand controls to image and document inputs Inspect non-text prompts for hidden instructions, suspicious overlays, or embedded content before the model processes them, especially in workflows that accept screenshots, PDFs, or uploaded files.

Key takeaways

  • GPT-4.5 and Claude 3.7 fail in different ways, which means model choice alone does not solve AI governance risk.
  • Red-teaming must cover privacy, code generation, refusal behaviour, and multi-modal inputs as separate control domains.
  • Enterprises need identity-aware approval and least-privilege controls wherever AI outputs can trigger data access or system actions.

Standards & Framework Alignment

This section maps relevant standards and security frameworks to the operational risks and controls described in this guidance.

OWASP Agentic AI Top 10 and MITRE ATLAS address the attack surface, NIST AI RMF and NIST AI 600-1 set the technical controls, and EU AI Act define the regulatory obligations.

FrameworkControl / ReferenceRelevance
NIST AI RMFMEASUREThe article is about evaluating model risks under adversarial testing.
OWASP Agentic AI Top 10The article covers misuse, prompt injection, and tool-risk patterns relevant to agentic AI.
EU AI ActArt.9The article discusses compliance and risk controls for AI deployment decisions.
NIST AI 600-1The article addresses generative AI misuse and safety evaluation.
MITRE ATLASTA0005 , Defense Evasion; TA0009 , CollectionAdversarial prompting and extraction attempts align with AI attack tactics.

Model red-teaming scenarios against ATLAS tactics to identify where prompts can evade safeguards or extract data.


Key terms

  • Red Teaming: Red teaming is structured adversarial testing used to find how an AI system fails under realistic misuse or attack conditions. In AI security, it is a discovery method, not a proof of safety, because probabilistic behaviour and changing models prevent any lasting guarantee.
  • Multimodal Prompt Injection: A prompt injection attack that arrives through non-text inputs such as images, audio, or video. The malicious instruction is hidden in content the system treats as ordinary user input, then surfaced by preprocessing or model interpretation and acted on by downstream tools or workflows.
  • Hallucination: An AI-generated response that is fluent and plausible but incorrect, unsupported, or fabricated. For identity and governance teams, hallucination is a control issue because users may act on it as if it were trusted system output, especially when the chatbot sits inside an operational workflow.
  • Refusal Behaviour: The tendency of an AI model to decline requests that it judges risky, harmful, or policy-violating. Refusal is useful in production, but it can limit safety research if the same model is expected to generate the scenarios needed to test itself.

What's in the full article

VirtueAI's full blog post covers the operational detail this post intentionally leaves for the source:

  • Test-by-test observations across safety, hallucination, privacy, and compliance scenarios for both models
  • Examples of harmful or rejected outputs used in the red-teaming process
  • Expanded discussion of VirtueRed's approach to model and application assessment
  • The vendor's own interpretation of where each model performs better or worse across specific misuse patterns

👉 VirtueAI's full post includes the detailed prompts, output examples, and comparative findings behind the summary above.

Deepen your knowledge

The NHI Foundation Level course, the industry's only accredited NHI security programme, covers NHI governance, identity lifecycle, and workload identity for practitioners building access controls around AI and automation. It helps security teams connect identity governance to the systems and workflows that depend on it.
NHIMG Editorial Note
Published by the NHIMG editorial team on August 18, 2026.
NHI Mgmt Group — the independent authority on Non-Human Identity, IAM, and Agentic AI security. nhimg.org