How To Protect Your Business From Shadow AI

Businesses across a wide range of sectors are now using artificial intelligence (AI) tools and software everyday. It seems we can’t escape the technology now it is being backed by the government for certain uses, but many businesses are using it without proper control or concern about the security risks it poses.

Shadow AI is one of these risks, and can lead to disastrous consequences like data breaches, the use of incorrect information and the chance of protection regulations being violated.

What Is Shadow AI?

Shadow AI is defined as the deployment and use of any AI-specific tools, like ChatGPT, that have not been authorised by the company or IT teams. This can consist of inputting sensitive information and using AI tools to review it. The intent might not be malicious but it can result in data leaks, compliance issues and it can leave employers in the dark about what information has been shared. Shadow AI is also invisible to traditional security tools, making it a difficult risk to detect.

Why Shadow AI Is a Growing Risk

Shadow AI presents challenges that differ from typical IT problems. Sensitive data can be pasted into AI tools without the organisation’s knowledge. This can result in uncontrolled data sharing and potential GDPR breaches. A company can end up paying significant fines and face wider legal, financial and reputational consequences if personal data is misused.

Perhaps the most concerning factor is that activity can be taking place without the knowledge of the IT department as firewalls and DLP (Data Loss Prevention) tools would be unable to detect it.

A Real Example of Shadow AI Risk

Let’s face it, many employees use AI tools for different tasks. From summarising meetings to drafting proposals, it’s a useful time-saving tool. It almost feels second-nature in how it’s used in the workplace, but there lies part of the problem. The growing reliance on AI tools to complete tasks has made employees more likely to input sensitive information, including intellectual property, contracts, client briefs and other confidential data.

In one case, an employee used an AI tool to improve productivity by pasting in confidential information. Existing security systems failed to detect the data transfer. During an audit, the company could only show that an AI tool had been accessed, with no visibility into what was shared, leaving no way to track, control, or verify what happened.

Why Blocking AI Doesn’t Work

So, why aren’t employers just blocking AI tools? This may seem like an obvious solution, however, there are many easy workarounds. Employees tend to use personal devices to access AI tools, which can create separate issues of reduced visibility, weakened security and unmanaged data outside an organisation’s environment.

Blocking AI tends to create even more blind spots. In many cases, a better approach is to manage AI use rather than eliminate it. By allowing approved tools and putting controls in place, organisations can maintain visibility. This enables employees to still benefit from efficient AI tools but in a way that’s safe.

How To Protect Your Business from Shadow AI

1. Gain visibility

• Understand how AI is being used
• Identify what tools employees are accessing

2. Control access

• Allow approved AI tools
• Restrict the use of AI tools that have unclear data policies

3. Protect data

• Redact personal and confidential data
• Limit uploads and prompts

4. Continuously improve

• Review usage
• Adapt policies
• Inform employees of best practices

How DefensX Helps You Control Shadow AI

DefensX is a browser-level security solution that gives organisations full visibility and control over how AI tools are used. Rather than blocking AI, it allows businesses to benefit from increased productivity while maintaining proper governance, that way sensitive data remains protected.

By operating with DefensX, your business can benefit from enhanced efficiency, control over approved AI tools and improved compliance. Get in touch with Optimising IT to learn more about DefensX and arrange a consultation