Shadow AI: What is it?
Shadow AI, the unauthorised use of AI tools within organisations, has become a growing topic of discussion as AI technologies become more accessible and user-friendly. Employees are increasingly adopting these tools to enhance productivity and solve problems, often without the explicit knowledge or approval of their IT departments. While this trend presents certain risks, it also unveils valuable opportunities for organisations to accelerate and improve their AI implementation strategies.
The Prevalence of Shadow AI
The adoption of Shadow AI has seen a significant surge in recent years.
• According to Microsoft and LinkedIn research, 78% of AI users are already bringing their own tools to work.
• According to a Netskope study the use of generative AI applications within organisations rose from 74% to 96% between 2023 and 2024.
• Over one-third (38%) of employees admit to sharing sensitive work information with AI tools without their employers' permission according to research from CybSafe and the National Cybersecurity Alliance.
Common Examples of Shadow AI
Shadow AI manifests in various forms across organisations, including:
• Using unauthorised AI chatbots for customer service enquiries
• Employing external machine learning models for data analysis.
• Utilising AI-powered marketing automation tools without approval.
• Adopting AI-driven data visualisation tools for business intelligence.
Opportunities and Risks
Whilst there are undeniable risks with the proliferation of Shadow AI around data security and privacy, compliance and legal issues, as well as wider operational and reputational risks, a more significant opportunity remains for organisations to harness the AI skills and knowledge of their employees to enable a speedier and wider organisational AI transition.
At Datnexa we specialise in implementing innovative AI solutions for organisations, from frontline service delivery to supporting strategic organisational objectives. This experience has taught us that the more informed and knowledgeable an organisation’s staff are about AI, the easier and quicker an organisation’s transition to AI will be.
Accelerating AI adoption is not the only potential benefit however from the use of Shadow AI, others include:
• Identifying unmet needs.
• Discovering innovative use cases.
• Gathering real-world user feedback.
• Data-driven decision making.
Making Shadow AI work for you
By addressing Shadow AI proactively, organisations can mitigate risks whilst harnessing the transformative potential of AI technologies. The key lies in striking a balance between innovation and governance, ensuring that AI adoption aligns with organisational goals and security standards. Recognising and leveraging the opportunities presented by shadow AI can significantly accelerate and improve an organisation's overall AI implementation strategy.
If your organisation is looking to transition to AI or you need more information about how a transition to AI could look, then email me - delivering Big Ideas and Bold Tech for a Better Tomorrow is what Datnexa does best!
