“The best way of keeping a secret is to pretend there isn’t one.” — Margaret Atwood.
Shadow IT refers to the use of technology, devices, software, or applications within an organization without explicit approval or oversight from the IT department. It often arises when employees seek faster or more flexible solutions than those officially provided, potentially leading to security and compliance risks.
Shadow AI is happening in workplaces right now. While businesses debate policies and boundaries, employees find ways to bring AI into their daily routines. It’s clever, creative, and often under the radar, but it comes with risks.
Are You Putting Your Company at Risk? Are you unknowingly allowing shadow AI to jeopardize your organization’s security and effectiveness?
If you don’t pay with money, you pay with your or your company’s data.
That’s the hidden cost of shadow AI, a price many companies don’t even realize they’re paying.
A Ban Is Not Enough
Many knowledge workers in companies that ban or prohibit AI continue to use it regularly, often relying on free AI tools with limited features, weaker privacy measures, and fewer security controls. These tools frequently provide less accurate answers while using your data to improve their models — creating significant risks for employees and organizations.
What Leadership Can Do About Shadow AI
- Create AI policies and guidelines: Clearly define permissible AI usage and data-sharing practices.
- Provide AI training: Equip employees with the knowledge to use AI tools safely and effectively.
- Communicate the approved tools: Encourage using paid, secure AI models to enhance performance and protect company data.
- Address widely used tools: If certain tools are popular among employees, either find a way to officially support them or ensure everyone understands they are not allowed. Transparency reduces risks and fosters compliance.
💡You could be unknowingly allowing shadow AI to harm your organization. Banning AI simply doesn’t work. Instead, empower your team with the right tools, policies, and training to stay competitive, secure, and ahead of the curve.
