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Is AI The Next Shadow IT?

Sep 18, 2023 - forbes.com
The article discusses the potential benefits and risks of artificial intelligence (AI) in organizations, comparing it to the phenomenon of Shadow IT. Shadow IT refers to the use of software tools within an organization without the knowledge or oversight of the IT department, which can lead to innovation but also security risks. Similarly, AI can increase efficiency and speed up value creation, but it can also introduce significant risk if mismanaged.

The author suggests that organizations should strike a balance by setting controls and policies around the use of AI products, providing guidance and training to employees, and continuously monitoring their portfolio. While AI and Shadow IT both require full visibility and policy establishment, the author argues that AI holds more potential and should not be stopped in the same way as Shadow IT. Instead, organizations should build a comprehensive strategy that includes an assessment of apps and ongoing discovery to ensure safety.

Key takeaways:

  • Artificial Intelligence (AI) has gone mainstream and is being used in both professional and personal lives. However, while it promises big benefits, it must be governed wisely to balance the benefits and risks.
  • The pros and cons of AI are similar to that of Shadow IT. AI presents a huge opportunity to increase efficiency and the speed of value creation, but it can also introduce significant risk to the organization if the wrong information is given to these models.
  • Governance is key to achieving the balance of freedom and responsibility for both Shadow IT and Generative AI tools. It is important to set controls and policies around the use of AI products, deliver guidance and training to employees, and monitor the portfolio on an ongoing basis.
  • Full visibility is foundational to managing both AI and Shadow IT. It is imperative to understand what SaaS applications are in use at your organization and which leverage AI to shed light on any risks that may be lurking in the shadows.
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