Do you and your employees use AI regularly, and if so, do you have a shadow AI policy in place? If the answers to this two-part question are “yes” and “no” respectively, it’s important to keep reading.
In this article, we explore the threats associated with unauthorised AI use and discuss how a stringent shadow AI policy focused on security and governance can help you mitigate these risks.
Shadow AI refers to the use of AI platforms and tools by employees, without prior approval from senior management or adequate monitoring by IT teams.
Although similar in nature to shadow IT, which involves the unsanctioned use of hardware, software, apps, and more, shadow AI specifically refers to the use of AI-assisted tools, such as chatbots, browser extensions, and Large Language Models (LLMs), without consent or oversight.
The key danger of shadow AI can be linked to one simple fact: businesses are keen to integrate AI into their day-to-day operations in an attempt to boost productivity and remain competitive, but unfortunately, all too often, these innovative systems are adopted without adequate education and caution.
A recent survey revealed that 87% of Irish employees now utilise AI tools to assist with a variety of work-related tasks, with 48% admitting to using them daily.
While reliance on this technology is increasing by the day, so too are the associated risks.
With 18% of respondents admitting to analysing confidential company data with the help of AI platforms, and a further 11% acknowledging that they have sent unreviewed AI-generated content to a customer, it appears businesses may be unwittingly expanding their unique threat surface while trying to keep pace with this evolving technology.
There are several pressing risks involved with operating without a well-structured shadow AI policy.
In cases where employees are using free AI tools to process company data, your intellectual property could be leaking into public AI models.
The unauthorised tools being used will often have specific vulnerabilities, such as weak security features and integrations. This leaves sensitive business data that is run through these AI platforms highly exposed, and could have serious repercussions for your organisation.
According to CTO Magazine, there are three areas where shadow AI undermines regulatory compliance, namely:
Each of the above is hugely problematic in an era where compliance with vital regulatory frameworks is a critical requirement.
The aforementioned risks lead us naturally to one of the most pressing threats of shadow AI: significant financial and reputational loss.
Whether as a result of a data breach or the inability to prove compliance, a business may be faced with costly penalties, thanks to the hidden dangers associated with shadow AI.
Any incident will also have a knock-on effect on a company’s reputation, with client, customer and stakeholder trust often undermined in the event of leaked data or credentials.
Startlingly, recent figures reveal that four out of five Irish businesses say responsible AI is not a priority. In the interest of safeguarding both the business and its people, this trend must change, and adopting a shadow AI policy is a great place to start.
Thankfully, given the accessibility of tailored IT security and compliance bundles through expert managed service providers (MSPs), such support is now accessible to businesses of all sizes and across all sectors.
An MSP can assist organisations with the creation of a shadow AI policy that prioritises both AI governance and security practices in equal measure.
This framework will establish:
Working with an expert IT partner to implement such a policy not only improves an organisation’s security prowess, but also provides valuable peace of mind.
With almost 20 years of experience, our team at Arbelos has built a reputation as an expert provider of managed IT services to businesses across Ireland. We have grown with the times, ensuring our IT solutions maintain pace with continuous technological innovation.
This is particularly true in the context of our IT security and compliance services.
From assessing vulnerabilities across your network, cloud and devices, to identifying gaps in GDPR and industry-specific compliance, our range of security-based services is designed to safeguard your organisation from the many digital threats that now exist.
With our expertise, we are also perfectly positioned to design a shadow IT policy that aligns with the unique needs of your business, while providing clear and actionable recommendations on other effective security protocols, minus the tech jargon.
If you’re ready to protect your business now and into the future with a comprehensive shadow IT policy, you’ve come to the right place. Contact us today to secure your free cybersecurity and compliance audit.
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