How organizations can mitigate shadow AI without stifling innovation (www.techradar.com)

A recent examination of "shadow AI," or the use of unapproved AI tools by employees, reveals significant challenges for organizations. A study from MIT found that over 90% of employees utilize personal AI tools, yet only 40% of companies monitor their usage. Meanwhile, a report from IBM indicated that 97% of organizations faced AI-related cybersecurity incidents, highlighting a critical lack of governance. This scenario poses a dilemma: should firms restrict AI to control risk, potentially stifling innovation, or allow unchecked use that could lead to exploitation? To address these issues, experts suggest finding a middle ground that balances innovation with security. Organizations need greater visibility into AI activities, potentially employing strategies such as network logs and enhanced data loss prevention. Additionally, establishing an AI governance group could facilitate oversight of AI agents, ensuring they perform tasks safely without constant supervision. By implementing clear usage policies and fostering a thorough review process for new tools, companies can mitigate risks while empowering employee creativity. Ultimately, achieving a harmonious balance between harnessing AI's potential and safeguarding against its inherent risks is essential for future organizational success.