Turning Shadow AI into a Growth Opportunity

1 October, 2024 |

Shadow AI: The Hidden Challenge Facing Modern Businesses

Today’s businesses are immersed in a constant cycle of innovation, where artificial intelligence (AI) has become a crucial ally. However, as the excitement to implement AI to solve daily problems and enhance efficiency grows, a new challenge has emerged: Shadow AI. This phenomenon, though less visible, can seriously compromise the security and efficiency of organizations if not managed properly.

In this article, we will explore Shadow AI with key insights from Lucas Llarul, Infrastructure & Technology Head at Huenei, who shares his perspective on how to tackle this challenge.

“Shadow AI is a threat that can turn into an opportunity if managed strategically,” asserts Lucas Llarul.

The Nature of Shadow AI: Beyond Unauthorized Tools

Shadow AI reflects a trend where employees, in an effort to streamline their tasks or meet specific needs, resort to AI tools without the knowledge or approval of the IT team. Llarul explains: “Using unauthorized solutions, even with the intention of boosting efficiency, entails significant risks.” These unmonitored tools can process sensitive information without adequate security measures, exposing the organization to critical vulnerabilities.

A clear example is the case of Samsung, where employees leaked confidential information to OpenAI’s servers by using ChatGPT without authorization. “This incident illustrates how unregulated AI usage can compromise information security in any organization, even those with strict security policies,” adds Lucas.

The issue is not only technical, but also strategic: when each department selects its own AI solutions, information silos are created, disrupting workflows and data sharing across departments. This creates a technological disarray that’s difficult and costly to fix.

Solution Fragmentation: A Barrier to Scaling

Technological fragmentation is one of the biggest challenges growing companies face. Lucas emphasizes, “When AI tools aren’t integrated and each team adopts its own solutions, the company can’t operate smoothly.

This directly impacts the ability to make fast, data-driven decisions. Moreover, the costs associated with maintaining disconnected or redundant technologies can escalate rapidly, jeopardizing sustainable growth.”

The lack of technological cohesion not only hampers innovation but also creates barriers to internal collaboration, compromising a company’s competitiveness.

Avoiding the Chaos of Shadow AI: A Proactive Strategy

Llarul suggests that the key to avoiding the risks of Shadow AI lies in adopting a proactive strategy that prioritizes visibility and control over the tools used within the company. “The first step is to create a detailed inventory of all the AI tools in use.

This not only helps identify which technologies are active but also clarifies their purpose, which is crucial for managing security risks and ensuring that the chosen tools truly meet operational needs,” he explains.

From a technical standpoint, IT team involvement is essential to ensure that AI solutions are properly integrated into the company’s infrastructure and meet security and compliance standards.

Furthermore, it’s not about banning unauthorized tools but understanding why employees turn to them. “If the organization provides approved and customized solutions that address teams’ real needs, it can foster an environment where innovation occurs in a controlled, risk-free manner,” adds Lucas. By involving IT teams from the outset and aligning solutions with the company’s strategic goals, it’s possible to centralize control without stifling dynamism and efficiency.

The Value of Customized Solutions in the AI Era

Llarul emphasizes that the answer is not only to centralize control but also to offer tailored alternatives: “By developing AI solutions tailored to each department’s specific needs allows technology optimization without compromising security or operational efficiency.” This also helps avoid problems arising from tool fragmentation and redundancy, fostering technological cohesion.

“Companies that implement tailored solutions aligned with their objectives can scale without facing the challenges imposed by technological fragmentation. A personalized approach fosters innovation and enhances competitiveness,” he adds.