Cyber security specialists in the East Midlands are warning businesses about the rapidly growing threat of Shadow AI – the use of artificial intelligence tools by employees without approval or oversight.
Shadow AI activity has increased as employees use publicly available and unvetted AI tools to speed up workflows, generate content and automate tasks. However, this unsanctioned use is creating serious exposure risks for sensitive company information such as client data and financial records.
Nottinghamshire-based IT support and cyber security specialists Your IT Department are urging small and medium sized businesses to minimise the dangers of Shadow AI by establishing clear AI-use policies.
“We’ve noticed that Shadow AI has become a growing concern,” says the Managing Director of Your IT Department, Lee Hewson. “The gap between AI usage and governance is widening. Organisations must implement responsible AI practice or face serious security, compliance and reputational risks.
“As AI becomes more accessible, sensitive corporate data is increasingly being entered into public and unvetted systems, creating serious exposure, compliance and security concerns.”
A report from IBM* found that one in five organisations globally had reported a breach due to Shadow AI. Only around a third had policies to manage AI or detect Shadow AI.
Lee added that Shadow AI often emerges from good intentions, with employees seeking faster workflows, automated content creation or quick data analysis.
“But when sensitive information, such as client data, financial records or source code is fed into some unvetted AI tools, it can leave the organisation’s control and lead to significant risks,” said Lee.
Businesses are urged to implement transparent AI‑use policies, provide secure approved tools, train staff on safe practices and use monitoring technologies capable of detecting unauthorised AI activity.
The award-winning team at Your IT Department offers an AI readiness assessment to help companies tackle the ever-changing AI landscape and reduce the risk from Shadow AI.
