Securing adoption in the era of shadow AI

Artificial intelligence is increasingly infiltrating workplaces, with employees turning to AI tools for greater efficiency. However, this push for faster processes has given rise to shadow AI - the unapproved use of AI outside established controls. While executives feel confident about AI visibility, a majority of employees admit to using AI without permission. This discrepancy creates a gap between AI adoption and governance.

Shadow AI can bypass oversight, leading to errors, regulatory breaches, and data leaks. Risks intensify as AI influences critical business functions like customer service and software development. As we move past large language models to action models and agentic systems, the possibility of harmful actions increasing quickly becomes a concern. Future AI systems may also be trained on poorer-quality data, weakening their effectiveness.

To mitigate these risks, organizations must adopt governance that balances innovation with clear guardrails. This includes a trusted AI tool stack, risk-based policies, and training to ensure employees understand the importance of responsible AI use. The best approach is to make responsible AI adoption the most convenient choice, rather than simply restricting access to unauthorized tools.

Companies that provide AI skills development and support employees in finding ways to meet their needs are likely to see stronger adoption of approved tools, reducing reliance on shadow AI and maintaining productivity.