AI has caused numerous unexpected issues, ranging from bias and discrimination in critical decision-making systems to misinformation and security threats. These problems often stem from the technology’s complexity and reliance on human-biased data.
However, one challenge is all too predictable: shadow AI. Employees are using an array of AI tools that aren’t sanctioned, monitored or managed by the IT department.
In one recent survey, more than 80 percent of workers admitted to using unapproved AI tools. Executives and managers were more likely than rank-and-file workers to use shadow AI as part of their day-to-day workflows. Interestingly, 88 percent of IT security leaders reported using shadow AI tools and were most likely to use them regularly.
Another study found that shadow AI usage has more than tripled in some industries, exposing organizations to significant security, compliance and business risks. Unvetted tools may also produce inaccurate results and inconsistent outcomes.
The Causes and Risks of Shadow AI
The root causes of shadow AI are the same as for shadow IT. Employees are being pushed to increase productivity, but feel they don’t have the tools they need to meet those demands. Cloud-based AI tools are now readily available and easy to procure and use. Employees may adopt one tool to complete a specific task, then add others based on that success.
As with shadow IT, the IT team may bear some responsibility for the adoption of unvetted tools. Recognizing the risks of AI, IT professionals may take a cautious approach to its adoption, frustrating users who want access to the latest tools. Additionally, IT may not have the resources or budget to vet, adopt or develop AI solutions.
The risks of shadow IT are well known, and IT teams have been grappling with them for decades. Many organizations have tools and processes in place to mitigate those threats. However, shadow AI is considered worse than shadow IT because its risks are more pervasive and harder to control.
Amplified Security and Compliance Threats
Data loss or exposure is one of the most significant risks of shadow technology. Using unapproved channels to store and share sensitive information bypasses security policies, increasing the risk of unauthorized access. Shadow AI ups the ante. Employees may input sensitive data into public AI tools, which could be stored or used to train the model. Using AI tools with unclear licensing terms or for generating content can also expose the organization to legal risks.
Unauthorized hardware and software expand the attack surface and create vulnerabilities that attackers can exploit. Unsanctioned tools may have weak authentication, use insecure data transmission or be misconfigured by users who don’t have security expertise. Shadow AI can introduce new security vulnerabilities through third-party integrations or by attackers compromising the AI model itself.
Unapproved systems may fail to meet regulatory standards, potentially leading to fines and legal penalties. With shadow AI, the scale of potential non-compliance is larger, as it can affect data across many departments.
New Business and Financial Risks
Unmanaged technology can lead to duplicate services and inefficient resource allocation, increasing costs for the organization. Using a multitude of unintegrated AI tools can create data silos and fragmentation, hindering overall efficiency and data governance.
Shadow AI also introduces a unique set of risks. Without proper oversight, different teams may use AI tools in conflicting ways, leading to misaligned decisions, unreliable outputs or misinformation due to AI hallucinations. AI can operate with a degree of autonomy, and its internal processes can be a “black box.” AI outputs could influence business decisions without a human ever verifying the information.
The Verteks team can help you develop an AI strategy and adoption model that reduces the risk that users will resort to unsanctioned tools. We can also help you implement policies and controls to detect and manage shadow AI usage. Let us help ensure that your team uses AI-powered tools effectively and securely to drive the business forward.
