It’s standard practice in the workplace these days: using AI to execute everything from writing and research, to coding, customer service, and even building websites. For many, it has made a great impact on efficiency.
But, while we celebrate its usefulness, it’s crucial to keep in mind its potential dangers.
Sure, employees are using AI tools to get more done, faster. But many are doing it without permission or oversight. This creates hidden security gaps that could put your business at risk without you even realising it.
Shadow AI is a growing issue. These tools can leak confidential information, breach compliance rules, or let in cyber threats. By the time IT finds out, the damage might already be done. But with the right approach, you can get ahead of the problem.
What Is Shadow Ai And Why Is It A Cybersecurity Risk?
Shadow AI is when employees use tools like ChatGPT without IT’s knowledge. This unsanctioned use can cause data leaks, trigger compliance issues, and increase the risk of cybersecurity incidents that businesses may not detect in time.
What is Shadow AI?
Jay Upchurch, CIO of data analytics platform SAS, has referred to Shadow AI as AI use within a business that occurs “in dark corners” (CNBC). In a nutshell, it happens when employees use AI tools that haven’t been reviewed or approved by IT. It’s similar to shadow IT but focused on artificial intelligence platforms and apps.
- Staff may use AI tools to write emails, code, or analyse data
- These tools often store or process inputs in ways users don’t understand
- Without IT oversight, these tools may mishandle sensitive data
Shadow AI usually comes from good intentions. But without control, it can quietly create serious risks that go unnoticed for too long.
➤ Bonus Resource: Artificial Intelligence (AI) has shaken the cyber security world, leaving businesses struggling to keep up. For a closer look, read our article: AI in Cyber Security: How It’s Changing the Game—and What It Means for Your Business
How Shadow AI Introduces Cybersecurity Threats
These tools may seem harmless, but they can act as a backdoor for hackers or lead to data loss. Shadow AI gives attackers new entry points that many systems aren’t prepared to defend against.
- Sensitive data may be exposed when typed into public AI platforms
- AI tools can be manipulated by attackers using prompt injection
- Use of these tools may break industry rules or privacy regulations
Your cybersecurity defences only work if you know what you’re protecting. Shadow AI makes it hard to spot and stop threats in time.
➤ Insight: An October 2024 study by Software AG found that half of employees are using Shadow AI: The Shadow AI Surge: Study Finds 50% of Workers Use Unapproved AI Tools
Reveal the “Dark Corners”: Identifying Shadow AI in Your Business
The first step is to know what tools your staff are using and how. Once you have that visibility, you can start to set boundaries and offer safer options.
- Monitor traffic for connections to popular AI tools and platforms
- Use DLP (Data Loss Prevention) systems to detect risky data sharing
- Ask staff directly through surveys or team discussions
People usually want to use AI to help their work, not harm it. When you involve them early, they’re more likely to follow guidelines.
➤ Pro Tip: According to Verizon’s 2022 Data Breach Investigations Report, 82% of data breaches have been linked to human error. That’s why raising security awareness in your team is crucial. For more, read our article: How Cyber Security Training for Employees Protects Your Business
Mitigating the Risks of Shadow AI
Putting the right policies in place makes it easier for staff to use AI safely. Instead of banning tools, offer guidance and approved platforms.
- Create an AI usage policy and explain it clearly to your team
- Offer approved tools that meet your data privacy standards
- Use filtering tools to block risky or unknown AI apps
Managing shadow AI doesn’t mean saying no to everything. It means creating clear guardrails so staff can use AI responsibly.
➤ Insight: IBM found 68% of businesses don’t yet have an AI governance framework in place.
Conclusion: Stay Smart About Shadow AI
AI is changing how we work. But if it’s used without checks and balances, it can quietly open your business to avoidable risks. Shadow AI isn’t just a trend—it’s a security concern.
Start by having conversations, reviewing policies, and putting the right tools in place. With help, you can turn a potential threat into a secure advantage for your business.
Need help managing AI tools in your business? Contact One Cloud IT Solutions today for a safer AI strategy.
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