A common example of shadow AI is the unauthorized use of generative AI (gen AI) applications such as OpenAI’s ChatGPT to automate tasks like text editing and data analysis. Employees often turn to these tools to enhance productivity and expedite processes. However, since IT teams are unaware of these apps being used, employees can unknowingly expose the organization to significant risks concerning data security, compliance and the company’s reputation.

For CIOs and CISOs, developing a robust AI strategy that incorporates AI governance and security initiatives is key to effective AI risk management. By committing to AI policies that emphasize the importance of compliance and cybersecurity, leaders can manage the risks of shadow AI while embracing the benefits of AI technologies.