“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.
- 41% of organizations report issues with unsanctioned AI (Gartner, 2022).
- 43% of professionals use ChatGPT or similar tools at work, bans be damned (Fishbowl, 2023).
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. Are You Putting Your Company at Risk?
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
1. Create AI Policies and Guidelines
Clearly define acceptable AI use and data-sharing practices.
2. Provide AI Training
Equip employees with the skills to use AI tools safely and effectively.
3. Communicate Approved Tools
Promote the use of secure, licensed AI tools to protect company data and enhance productivity.
4. Address Widely Used Tools
If certain tools are popular, either officially support them or clarify that they are not allowed. Transparency reduces risk and encourages compliance.
🎯 Remember
You can’t police every backdoor. You can build a highway that keeps everyone on the right path—or watch your data vanish into thin air. The choice is yours.
