Shadow AI: Is Your Company Data at Risk?
Shining a Light on Shadow AI: Is Your Company Data at Risk?
Ever heard of “Shadow AI”? It’s when employees use AI tools for work without the official thumbs-up from the IT or security folks. Think of it like using your favourite app to get work done faster, even if it’s not on the company’s approved list.
This is becoming super common. One 2024 prediction said 60% of employees would likely use their own AI at work. Another study around the same time found that half of all employees are already doing it, and many said they’d keep using these tools even if their boss said no!
Why’s this a big deal? Data, data, data.
The amount of company information being fed into these unapproved AI tools has skyrocketed – up by a massive 485% in just one year (between March 2023 and March 2024). To make things trickier, a May 2024 report showed that 90% of AI use in companies happens on personal, unauthorised accounts.
When employees use AI tools that IT doesn’t know about, it creates big blind spots for security teams. They can’t protect what they can’t see. This massively bumps up the chances of:
- Data leaks
- Losing valuable company secrets (intellectual property)
- Breaking industry rules and regulations
Why are employees doing this? They’re trying to be productive!
Most employees using Shadow AI have good intentions. They turn to these tools to help with everyday tasks like:
- Drafting emails
- Summarising long documents
- Analysing data
- Creating content
They often find these tools quicker, easier, or more powerful than what the company officially provides. The problem is, this can lead to them sidestepping important security rules. Nearly half of office workers admit they’d keep using their favourite AI tools even if the company banned them.
It’s Not Just About Breaking Rules
The rise of Shadow AI often signals that employees aren’t getting the tech support they need. If the official tools are clunky, too restrictive, or slow to arrive, people will naturally look for better options to do their jobs well. This desire to be efficient (which is a good thing for the business!) ends up creating a hidden, uncontrolled digital world where company data is at greater risk.
So, What’s the Solution?
Just banning unauthorised AI isn’t enough. The reality is more nuanced, but broadly, organisations should focus on areas like these:
- Provide Good Alternatives: Offer effective, approved AI tools that are easy to use and actually help employees do their jobs.
- Detect Unseen AI: Get better at spotting when unapproved AI tools are being used.
- Prevent Data Loss: Put strong measures in place (like Data Loss Prevention, or DLP) to stop sensitive info from leaking out.
- Communicate Clearly: Talk openly about the risks of using unapproved tools.
- Train Your Team: Teach everyone how to use AI safely and responsibly.
Tackling Shadow AI means understanding why it’s happening and providing better, safer solutions for everyone in your organisation.