Picture this: your employees, bright-eyed and eager, are embracing the latest AI tools. Increased productivity and innovative solutions sound great so what’s the problem? Well, beneath the surface of this AI enthusiasm lurks a potential threat: Shadow AI. This isn’t some futuristic sci-fi concept; it’s the reality of employees using unauthorised AI applications, often without the knowledge of their IT or governance teams.
“It’s easier to get forgiveness than permission,” is a common phrase we here. These are not employees who have gone rogue and installed an unauthorised printer. We’re talking about employees using AI tools without the knowledge or consent of their IT or governance teams. And it’s happening more than you might think.
A recent survey revealed that a staggering half of all knowledge workers are using personal AI tools, often bypassing company-approved options. The reasons are varied: a perceived lack of internal AI solutions, a preference for specific tools, or simply the allure of convenience. One developer even admitted to using an unapproved coding assistant because it was “too much hassle” to go through the official channels. Sound familiar?
While these tools can undoubtedly boost individual productivity – imagine the equivalent of adding a fraction of an extra employee to your team – they also open a Pandora’s Box of risks.
One major concern is data security. Many AI tools are trained on massive datasets, and some even incorporate user-provided information. This raises the spectre of sensitive company data being inadvertently exposed. While the risk of direct data extraction might be low, the fact remains that this data is being stored and processed outside of your organisation’s control. A data breach at a third-party AI provider could have devastating consequences.
Ethical considerations are another critical factor. Without proper oversight, it’s difficult to ensure that AI tools are being used responsibly. Are they perpetuating biases? Are they compliant with relevant regulations? These are questions that need answers.
So, what can leaders do to address this growing challenge? Ignoring it is not an option. We recommend three key steps (and of course you can invite us in to help you with this!):
- Investigate and Discover: Don’t assume you know the extent of Shadow AI in your organisation. Conduct a thorough investigation – but not a witch hunt! Talk to your employees. Understand what tools they’re using, why they’re using them, and what problems they’re trying to solve. This discovery phase is crucial for developing an effective strategy.
- Craft a Smart Policy: Develop a clear and comprehensive policy on AI usage. This should outline acceptable tools, data protection guidelines, and ethical considerations. Communicate this policy effectively to all employees and ensure it’s regularly reviewed and updated to keep pace with the rapidly evolving AI landscape.
- Educate and Empower: Provide your employees with the training and resources they need to use AI responsibly. Educate them about data sensitivity, potential risks, and company policies. Empower them to make informed decisions and foster a culture of open communication about AI usage.
The rise of Shadow AI is a call to action for leaders. It’s time to bring this hidden activity into the light and develop strategies to manage the risks while harnessing the potential benefits. After all, you don’t want your organisation to be left behind in the AI revolution, do you?
