From facilitating things as complex as operations to tasks as routine as daily communication, IT is an integral part of all modern organizations. However, alongside an organization’s official IT infrastructure, there is a phenomenon known as “shadow IT.”
Shadow IT refers to the use of information technology systems, devices, software, applications, and services without explicit organizational approval. While shadow IT can offer immediate benefits, it also poses significant risks, especially in the context of artificial intelligence (AI).
What is Shadow IT?
Shadow IT encompasses any technology that employees use independently of the organization’s sanctioned IT department. This can include personal devices, cloud services, software applications, and even AI tools.
Why your staff may use Shadow IT
The allure of shadow IT lies in its ability to provide quick solutions to immediate problems, often bypassing the slower, more bureaucratic processes of official IT channels.
Unsanctioned IT of any kind poses a risk. And in some cases, there is no benefit to the risk–for example, a downloaded video game on an organization’s computer. What makes Shadow IT a particular challenge is that it tends to help employees do their jobs better. Shadow IT fills some gap in the sanctioned IT infrastructure.
For example, if a company has a sanctioned PDF viewer application that has limited functionality, an employee who needs to quickly edit PDFs might use a free online PDF editing tool that has not been sanctioned by the organization.
In many cases, staff do not realize they are using shadow IT. They may not be familiar with the concept of shadow IT and if an organization does not have an explicit policy in place, staff may think they’re just using whatever tools they can to get the job done.
Why Shadow IT can be a problem
While shadow IT can foster innovation and agility, it also introduces several risks that can undermine the security, compliance, and overall integrity of an organization’s IT infrastructure. Here are some key concerns:
- Security Risks: Unapproved IT resources are not subject to the same security protocols as official systems. This can lead to vulnerabilities such as data breaches, malware infections, and unauthorized access. For example, an employee using an unsecured cloud service might inadvertently expose sensitive company data to cyber threats.
- Compliance Issues: Many industries are subject to strict regulatory requirements regarding data handling and privacy. Shadow IT can lead to non-compliance, as unauthorized tools and services may not adhere to these regulations. This can result in legal penalties and damage to the company’s reputation.
- Data Management Challenges: Shadow IT can create data silos, where information is scattered across various unapproved platforms. This fragmentation makes it difficult for the IT department to manage and protect data effectively, leading to inefficiencies and potential data loss.
- Resource Duplication: When employees use shadow IT, they may inadvertently duplicate efforts and resources, leading to wasted time and money. For instance, multiple departments might subscribe to different project management tools, resulting in redundant costs and fragmented workflows.
Shadow AI
Artificial intelligence is transforming the business landscape, offering powerful tools for data analysis, automation, and decision-making. However, when AI tools are used as shadow IT, it can amplify the risks listed above and create some new challenges.
AI poses unique ethical and data security risks. Many organizations who officially adopt AI technology will also implement an AI Acceptable Use policy that outlines how AI should be used to help safely make staff more productive. Shadow AI will not necessarily adhere to policies and best practices and puts an organization at increased risk.
AI may also have access to private or proprietary organization data that users are not aware of. Because IT departments may not be aware of the shadow IT being used by staff, when shadow AI is introduced into an organization’s network, IT departments may not able to safely limit the AI’s access to sensitive data.
Mitigating Shadow IT risks
To address the challenges posed by Shadow IT, especially in the context of AI, organizations should consider the following strategies:
- Education and Awareness: Educate employees about the risks associated with shadow IT and the importance of using approved tools and services. Promote a culture of cybersecurity and compliance.
- Robust IT Policies: Develop and enforce comprehensive IT policies that clearly outline acceptable use of technology. Ensure these policies are regularly updated to keep pace with evolving technological trends.
- Centralized IT Management: Whether done internally or by your MSP, implementing centralized IT management systems that provide visibility and control over all technology used within the organization will make it easier to spot and stop shadow IT from developing.
- Encouraging Innovation: Foster an environment where employees feel comfortable proposing new technology solutions through official channels. This can help harness the benefits of shadow IT while mitigating its risks.
AT BSC Solutions Group we understand the tension that can sometimes develop between innovation and security. If you’d like to know more about how we can help you avoid shadow IT while boosting your organization’s productivity, contact us today.
