Shadow IT and the Rise of Shadow AI

Have you ever downloaded a cool new app on your phone without asking your parents first? Or maybe used a friend's streaming account to watch a movie? That's kind of like what Shadow IT is, but for businesses. It's when employees use software, apps, or devices for work without their IT department knowing or approving.

Think of IT like the parents of a company: they make sure everyone is safe online and that everything runs smoothly. But when employees use things without telling IT, it creates security holes, kind of like leaving the door open for someone to sneak in.

Why is Shadow IT a Problem?

Imagine someone uses a free file-sharing app to send a really important work document. That app might not be secure, meaning someone could steal the information. Or maybe an employee uses an AI tool to help them make decisions. If IT doesn't know about this tool, they can't make sure it's using information correctly and not making biased decisions.

These are just a few examples of why Shadow IT can be a big problem. It can lead to:

• Security risks: Hackers could get into the company's systems and steal information.
• Data loss: Important information could be lost or accidentally deleted.
• Compliance violations: The company might be breaking rules about how they handle data.
• Wasted money: The company might be paying for software they don't need because employees are using free alternatives without telling anyone.

Shadow AI: A New Challenge

Shadow AI is a new and growing problem within Shadow IT. This is when employees use AI tools without IT knowing. AI can be really helpful, but it can also be dangerous if not used properly.

For example, imagine an employee uses an AI chatbot to help them write marketing copy. If the chatbot is trained on biased data, it might write copy that is offensive or discriminatory.

Here are a few reasons why Shadow AI is particularly worrying:

• Fast development: AI is changing so quickly that many IT departments struggle to keep up with all the new tools.
• Lack of control: When employees use AI tools without permission, IT can't make sure they are being used safely and responsibly.
• Increased security risks: AI can be used by hackers to create more sophisticated attacks.

Why Does Shadow IT Keep Happening?

Even though everyone knows Shadow IT is bad, it's still really common. Why?

• People want to work quickly: Sometimes employees just need to get things done, and they don't want to wait for IT to approve a new tool.
• IT is busy: IT departments are often overloaded with work, and they might not have the time or resources to track down every single app that employees are using.
• Lack of communication: Sometimes there's just a disconnect between IT and the rest of the company. Employees might not understand why they can't use certain tools, and IT might not understand the needs of the employees.

What Can Companies Do?

There are a few things companies can do to combat Shadow IT and Shadow AI:

1. Better communication: IT departments need to talk to employees about the risks of Shadow IT and explain why it's important to use approved tools. They should also try to understand the needs of employees and find secure solutions that meet those needs.
2. Stronger security measures: Companies need to put strong security measures in place to protect their data. This includes things like firewalls, antivirus software, and strong passwords.
3. AI governance: Companies need to develop clear guidelines for how AI tools can be used. This includes things like data privacy, bias detection, and ethical considerations.
4. Discovery tools: IT departments can use special software to find out what apps and tools are being used on their network, even if they haven't been approved. This can help them identify and address potential security risks.

The Future of Shadow IT

The good news is that more and more companies are starting to take Shadow IT seriously. They are realizing that it's not just a minor inconvenience – it's a serious threat to their security and their bottom line.

By taking steps to address Shadow IT and Shadow AI, companies can create a safer and more productive work environment for everyone.

AlphaSaaS empowers you with complete visibility into all the applications and tools being used, even those outside of IT's purview. Gain control, mitigate risk, and ensure compliance. Contact us today to learn more about how AlphaSaaS can help your organization.