Artificial Intelligence (AI) can undoubtedly revolutionise various aspects of business operations, offering unprecedented capabilities that drive efficiency, innovation, and competitive advantage. Microsoft's introduction of Copilot has showcased the immense potential of AI in enhancing business performance and making everyday tasks much quicker to undertake. However, as AI tools become more prevalent, organisations must be vigilant about the phenomenon known as Shadow AI and the potential risks it poses.
What is Shadow AI?
Shadow AI refers to the use of AI applications and tools within an organisation without the formal approval or knowledge of the IT department. These AI tools are often implemented by individual employees or departments seeking to solve specific problems or enhance productivity.
While the intentions behind deploying Shadow AI might be positive, the lack of centralised oversight and governance can lead to significant risks. These tools are readily available and growing every day and are often open source, free of charge and simple to implement with a few clicks.
So, what should you and your organisation be concerned about? Let’s discuss some of the key problems we believe you face.
One of the most pressing concerns associated with Shadow AI is the potential compromise of security and data privacy. When AI tools are used without proper oversight, sensitive company data may be exposed to unvetted applications or services. This can lead to data breaches, intellectual property theft, and compliance violations, especially if the AI tools interact with external systems or cloud services.
Shadow AI often operates outside the walls of established governance frameworks and compliance protocols. organisations must adhere to various regulatory standards, such as GDPR, HIPAA, and Cyber Essentials. Unapproved AI tools may not comply with these regulations, putting the organisation at risk of legal penalties and reputational damage.
AI tools and applications must seamlessly integrate with existing systems and workflows to deliver their full potential. Shadow AI solutions, developed in isolation, may face integration challenges, resulting in data silos and interoperability issues. This can impede the flow of information and hinder cross-functional collaboration.
Precautions Organisations Should Take
To address the concerns associated with Shadow AI and harness the benefits of AI tools effectively, organisations should build a strategy for the adoption of AI into their organisation. You may currently have no plans to evaluate AI and its potential in your organisation, but we believe there are steps that everyone should build into their IT and security roadmaps to ensure the appropriate compliance, protection and understanding is instilled within the business.
Establish a Centralised AI Governance Framework
Organisations should create a centralised AI governance framework that outlines the policies, procedures, and guidelines for AI adoption and usage. This framework should involve key stakeholders from your organisation to ensure a holistic approach. Establishing clear approval processes and oversight mechanisms can help mitigate the risks associated with Shadow AI.
Promote Awareness and Training
Employees across all levels should be educated about the risks and implications of Shadow AI and the importance of protection organisational data. Conducting training sessions, workshops, and awareness campaigns can help employees understand the importance of adhering to approved AI tools and processes. Additionally, providing resources and support for AI literacy can empower employees to make informed decisions.
Implement Robust Security Measures
Security should be aligned to all aspects of your IT infrastructure, and with AI tools being able to undertake tasks and leverage information quickly and efficiently, its further extends the security controls you should have in place. Data security should be a top priority when adopting AI tools.
Organisations should implement robust data encryption, access controls, and monitoring mechanisms to protect sensitive information. Regular security audits and vulnerability assessments can help identify and address potential weaknesses in AI applications.
Regularly Review and Audit AI Applications
Organisations should conduct regular reviews and audits of AI applications to ensure compliance with governance frameworks and regulatory standards. Monitoring the performance, accuracy, and reliability of AI models can help identify potential issues early and implement corrective actions. Continuous evaluation and improvement are essential for maintaining the effectiveness of AI tools.
Seek External Expertise
For organisations with limited in-house AI expertise, seeking external assistance can be beneficial. Collaborating with a provider to help your organisation adopt, control and secure your environment for AI is essential and provides valuable insights and support in implementing and managing AI initiatives. They can also assist in conducting risk assessments and developing robust AI strategies.
Microsoft Copilot Consulting Services from Sharp
The advent of AI tools like Microsoft's Copilot has highlighted the transformative potential of AI in enhancing business operations. However, the rise of Shadow AI presents significant challenges and risks, particularly for organisations.
By understanding the concerns associated with Shadow AI and implementing the necessary precautions, organisations can harness the power of AI while safeguarding their data, ensuring compliance, and fostering a culture of collaboration and innovation.
Proactive measures, such as establishing governance frameworks, promoting awareness, and seeking external expertise, can help organisations navigate the complexities of AI adoption and realise its full potential.
If you’re interested in adopting Microsoft Copilot across your organisation, our Microsoft Copilot Consulting Services offer expert consultancy to help your teams adopt and onboard Microsoft Copilot in the most secure and efficient way. The process is split into 5 key stages and our expert team will support you every step of the way, ensuring you fully harness the benefits of using Copilot.
