Artificial intelligence is changing the way we do everything, from driving and writing to brainstorming and forecasting. As businesses learn to leverage this resource, they must also learn what cybersecurity protections and responsibilities need to accompany it.
One growing concern is shadow AI—the use of unapproved and unmanaged AI tools. In this post, we’ll break down what shadow AI is and how your business can stay protected.
What Is Shadow AI?
Shadow AI is when an employee uses AI tools or systems within an organization without formal approval and direction from IT, management, or security teams. This often happens when team members try to enhance productivity or test out a new tool, but they neglect to confirm the security and validity of the AI platform and don’t get permission to use it.
Is Shadow AI the Same as Shadow IT?
Shadow AI and shadow IT are similar concepts, but they are slightly different. Shadow IT is a broader term that refers to the unauthorized use of any technology or software within an organization. Meanwhile, shadow AI specifically focuses on the use of unapproved AI tools.
What Are the Risks of Shadow AI?
Using AI tools that aren’t officially approved by the company may not seem like a big deal initially, but this practice presents significant risks for the entire organization.
Security Blind Spots
When an employee uses an AI tool that the cybersecurity team doesn’t know about, they can’t provide proper policies and protections, leaving easily exploitable gaps. Without visibility or oversight, teams may unknowingly introduce vulnerabilities, leaving sensitive systems and data exposed to potential threats.
Uncontrolled Data Flow
Using unapproved AI tools can result in uncontrolled data flow, where sensitive information or intellectual property is uploaded into open-access platforms. This data may unknowingly be used to train AI models, making it available to other users and leaving it vulnerable to any data breaches on the AI tool itself. A good example of uncontrolled data flow is email or calendar AI “assistants” that access your inbox, calendar, and contacts.
Exposure to Malicious Tools
Some AI models or extensions are completely fake, built for the sole purpose of tricking users into entering personal information that hackers can then exploit. If employees are not careful and intentional about which AI tools they use, they may fall into one of these traps, exposing the company to significant financial and operational damage.
Compliance Violations
Unauthorized AI usage can lead to inadvertent violations of industry standards, data protection laws, or regulatory requirements. This noncompliance can lead to serious penalties and jeopardize relations with customers and partners. An example of compliance violations is uploading a spreadsheet with confidential financial information to ChatGPT without the proper license and accidentally exposing the spreadsheet to the public data model.
Reputational Damage
The fallout from shadow AI can severely harm an organization’s reputation. Whether through data breaches, compliance issues, or security incidents, the loss of trust from clients, partners, and stakeholders can be incredibly difficult to recover from.
How Can My Company Detect Shadow AI?
Unfortunately, basic scanning and detection practices aren’t sufficient to fully monitor AI use within your company. Cloud-based AI tools and extensions that don’t require downloading any software often don’t appear on surface-level scans, making it difficult to identify any usage.
Instead, businesses should focus on running user-level monitoring, which tracks the activity of individual users within the company, making it easier to spot unsanctioned AI use.
This process should include network traffic analysis, browser and extension monitoring, evaluation of AI use on platforms like Microsoft 365 Copilot, and endpoint management for each person in the organization.
Following a zero trust approach with firewall limitations and application allowlisting can help ensure that any unauthorized AI is blocked where possible and addressed, maintaining the organization’s data security and compliance with established policies.
How Can I Minimize the Risks of Shadow AI?
Here are a few things your organization can do to limit the risks of shadow AI and maintain security throughout the company.
Establish Clear, Flexible Policies
AI policies should clearly outline approved tools but also leave room for exploration. Rather than banning AI or new apps and programs, they should include a process for employees to request approval for new AI tools. This promotes transparency and helps your organization evaluate and adopt new tech so you can take advantage of available resources.
Build Individual Risk Profiles
Assessing the risk levels posed by each employee based on their roles, access privileges, and interaction with AI tools helps you know who needs additional education or monitoring to stay safe. For instance, a finance team member with access to sensitive financial data may warrant stricter monitoring than a marketing intern using AI for creative purposes.
Evaluate Unsanctioned Tools
If you come across shadow AI in your audits, conduct trials to evaluate the security implications of the misuse, but also determine if the tool could be useful to your company. This can be a great opportunity to teach employees, understand what policy or cybersecurity improvements need to be made, or even adopt a new AI resource.
Develop a Secure AI Culture
The best way to encourage safe AI use is to make it part of your company’s culture. Promote awareness and accountability through ongoing AI training, and create an open dialogue between all departments about AI. This collaboration will help team members feel comfortable asking questions and accepting the responsibility to use AI correctly.
Get Trusted IT Help with Run Networks
The way we use AI in business settings will continue to evolve, creating new risks and new opportunities with every turn. Having a trusted IT advisor like Run Networks at your side will help you navigate these changes seamlessly and securely.
With over 18 years of industry experience, high-level tools, and a commitment to your long-term success, we’re more than ready to help protect your business. Fill out our simple form to get in touch with one of our techs and learn more.
