Todd A. Jacobs | Pragmatic Cybersecurity#FrameChallenge: #ShadowAI is no different from any other form of #ShadowIT.
Shadow IT is a fancy way of saying "individuals or teams doing stuff without going through channels." It can be a headache for #cybersecurity, #datagovernance, and #riskmanagement groups in heavily-regulated environments. However, self-serve IT is also a great "canary in the coal mine" for identifying areas where a company's processes have failed to deliver value to customers or internal stakeholders, or where current tools and processes are seen internally as blocking innovation or limiting productivity.
Compliance doesn't equal security, and security for its own sake doesn't usually deliver market value—unless you're selling security products or services, of course. So, if people are bypassing routine channels to implement solutions directly rather than requesting new centrally-managed capabilities, it's probably time to review and improve your current policies, standards, and guidelines.
Good reviews address the current friction points of your existing processes. More importantly, they shine a light on the perceived value proposition of the solutions that people are implementing themselves to solve day-to-day work challenges. During reviews, remember that the goal is to facilitate value creation within the organization's risk tolerance, not to avoid adaptation!
The risks of "shadow AI" are absolutely identical to the other risks inherent in data and systems protection, including the risks of #BYOD. These things are inevitable when business units respond to market change faster than the larger organization can adapt. The controls to successfully address those risks are all exactly the same, too.
Shadow AI Is Already Inside Your Business, and It’s a Ticking Time… | Pradeep Sanyal | 18 comments
Shadow AI Is Already Inside Your Business, and It’s a Ticking Time Bomb Employees aren’t waiting for IT approval. They are quietly using AI tools, often paying for them out of pocket, to speed up their work. This underground adoption of AI, known as Shadow AI, is spreading fast. And it is a massive risk. What’s Really Happening? • Employees are pasting confidential data into AI chatbots without realizing where it is stored. • Sales teams are using unvetted AI tools to draft contracts, risking compliance violations. • Junior developers are relying on AI-generated code that might be riddled with security flaws. The Consequences Could Be Devastating ⚠️ Leaked Data: What goes into an AI tool does not always stay private. Employees might be feeding proprietary information to models that retain and reuse it. ⚠️ Regulatory Nightmares: Unapproved AI use could mean violating GDPR, HIPAA, or internal compliance policies without leadership even knowing. ⚠️ AI Hallucinations in Critical Decisions: Without human oversight, businesses could act on false or misleading AI outputs. This Is Not About Banning AI, It Is About Controlling It Instead of playing whack-a-mole with unauthorized tools, companies need to own their AI strategy: ✔ Deploy Enterprise-Grade AI – Give employees secure, approved AI tools so they do not go rogue. ✔ Set Clear AI Policies – Define what is allowed, what is not, and train employees on responsible AI use. ✔ Keep Humans in the Loop – AI should assist, not replace human judgment in critical business decisions. Shadow AI is already inside your company. The question is, will you take control before it takes control of you? H/T Zara Zhang | 18 comments on LinkedIn