Shadow IT in the Age of AI

For years, Shadow IT has been a persistent challenge for organizations. Employees adopt unsanctioned tools and applications, leaving IT teams scrambling to maintain security, visibility, and compliance. But now, there’s a new twist: Shadow AI.

As AI tools become more accessible, employees are adopting them without IT’s knowledge or approval. In this Shadow AI era, the risks are escalating. AI tools, particularly generative AI, have the potential to analyze sensitive information, automate workflows, and even assist in decision-making. However, when these tools operate outside of IT’s oversight, they introduce more significant risks. From potential data security breaches to compliance violations, Shadow AI is an emerging challenge that organizations cannot ignore.

Reports show that 91% of security teams are already using generative AI, but 65% admit they don’t fully understand its implications. That lack of understanding poses a critical risk—AI tools may be unintentionally accessing confidential information or opening doors to cyberattacks.

The complexity of managing Shadow IT has now grown with the introduction of unsanctioned AI tools. Business users often move too fast for IT to keep up, and many organizations (32%) report they don’t even have the tools necessary to discover all the applications in use. Add AI into the mix, and the associated risks multiply.

To tackle Shadow AI, IT teams need to focus on a few key areas:

• Increased Visibility: IT must be equipped with the right tools to discover and monitor all AI and SaaS applications being used.
• Stronger Partnerships: A lack of communication between IT and business units often fuels Shadow IT and Shadow AI. Building these bridges ensures that employees can access the tools they need—within a secure framework.
• AI Governance: The use of AI tools must be regulated by a governance framework that not only enforces security measures but also addresses the ethical use of AI.

As organizations continue to navigate the complexities of digital transformation, AI tools are both a solution and a challenge. Without proper oversight, the very tools designed to increase productivity can become the source of an increased risk. The time to act is now, before the Shadow AI era grows beyond control.

Link to full article: The Increased Risk of Shadow IT in the Shadow AI Era?