The New AI Governance Model That Puts Shadow IT on Noticeh2>
Artificial intelligence (AI) tools are spreading rapidly across workplaces, reshaping how everyday tasks get done. From marketing teams drafting campaigns in b>ChatGPTb> to software engineers experimenting with code generators, AI is quietly creeping into every corner of business operations. The problem? Much of AI adoption is happening under the radar without any oversights or governance.p>
As a result, b>shadow AIb> has emerged as a new security blind spot. The instances of unmanaged and unauthorized AI use will continue to rise until organizations rethink their approach to AI policy.p>
The Challenge for CIOsh3>
For b>CIOsb>, the answer isn’t to prohibit AI tools outright, but to implement flexible guardrails that strike a balance between innovation and risk management. The urgency is undeniable as b>93%b> of organizations have experienced at least one incident of unauthorized shadow AI use, with b>36%b> reporting multiple instances. These figures reveal a stark disconnect between formal AI policies and the way employees are actually engaging with AI tools in their day-to-day work.p>
Strategies for Addressing AI Risksh3>
Establishing Governance and Guardrailsh4>
To get ahead of AI risks, organizations need AI policies that encourage AI usage within reason – and in line with their risk appetite. However, they can’t do that with outdated governance models and tools that aren’t purpose-built to detect and monitor AI usage across their business.p>
Identify the Right Frameworkh4>
There are several frameworks and resources available, including guidance from the a href=”https://www.gov.uk/government/publications/implementing-the-uks-ai-regulatory-principles-initial-guidance-for-regulators”>b>Department for Science, Innovation and Technology (DSIT)b>a>, the a href=”https://www.gov.uk/government/publications/ai-playbook-for-the-uk-government/artificial-intelligence-playbook-for-the-uk-government-html”>b>AI Playbook for Governmentb>a>, and the a href=”https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/artificial-intelligence/guidance-on-ai-and-data-protection”>b>Information Commissioner’s Office (ICO)b>a>. These resources can help organizations build a responsible and robust framework for AI adoption.p>
Invest in Visibility Toolsh4>
As businesses establish the roadmap for AI risk management, it’s crucial that the security leadership team starts assessing what AI usage really looks like in their organization. This means investing in visibility tools that can analyze access and behavioral patterns to find generative AI usage throughout the organization.p>
Establish an AI Councilh4>
With the data collected, the b>CISOb> should consider establishing an AI council made up of stakeholders from across the organization – including IT, security, legal, and the C-suite. This council can discuss risks, compliance issues, and the benefits arising from both unauthorized and authorized tools already permeating their business environments.p>
For example, the council may identify a shadow AI tool that has gained traction but is not safe, while a safer alternative exists. A policy can then be established to explicitly ban the unsafe tool while recommending the safer option. These policies will often need to be paired with investments in both security controls and alternative AI tools.p>
Update AI Policy Trainingh4>
Engaging and training employees will play a crucial role in obtaining organizational buy-in to mitigate shadow AI risks. With better policies in place, employees will need guidance on the nuances of responsible AI use, the rationale behind certain policies, and data handling risks. This training can help them become active partners in innovating safely.p>
In some sectors, the use of AI in the workplace has often been a taboo topic. Clearly outlining best practices for responsible AI usage can eliminate uncertainty and mitigate risk.p>
Governing the Future of AIh2>
Shadow AI isn’t going away. As generative tools become more embedded in everyday work, the challenge will only grow. Leaders must decide whether to view shadow AI as an uncontrollable threat or as an opportunity to rethink governance for the AI era. Organizations that thrive will be those that embrace innovation with clear guardrails, making AI both safe and transformative.p>
