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Navigating the Risks and Realities of Shadow AI in Modern Organizations
This article explores the risks associated with Shadow AI, which is the use of AI tools and solutions within organizations without IT department approval, and presents strategies to minimize these risks.
Introduction
“Shadow AI” refers to artificial intelligence (AI) tools or solutions used within an organization without the approval or knowledge of the IT department. The illegal use of AI can lead to a variety of risks, including data breaches and compliance issues, and these tools do not go through the usual validation and security protocols.
The rise of shadow AI is a major challenge for enterprise IT. According to Gartner, by 2022, nearly one-third of organizations using AI to make decisions will perceive shadow AI as a major obstacle. This makes it imperative for organizations to develop an AI strategy that mitigates the risks of shadow AI while reaping its benefits.
Risks of Shadow AI include the following
- Compliance issues: Shadow AI tools may not be compliant with data privacy regulations such as GDPR and CCPA. This can lead to heavy fines and damage to a company’s reputation.
- Data security concerns: Shadow AI tools often may not have information about protective measures such as…
