Shadow AI on the rise: the underestimated risk and the right strategy

‍Employees are increasingly using shadow AI

Your employees are using AI to be more productive. That is good news. The bad news: They often do it secretly, using freely available tools from the Internet. This is exactly what now even warns Microsoft and speaks of serious damage caused by this “Shadow AI”. The phenomenon is in Present to almost every company and represents a ticking time bomb for your data security and compliance. Our article explains in just a few minutes what you need to know and do now.

What is shadow AI anyway?

Imagine that they don't have a contractual agreement or additional protection with an AI provider. However, your employees use it and, under this constellation, the provider potentially withdraws the right to store and use the data, for example:

• A salesperson loads a customer list into ChatGPT to create email templates.
• A developer copies internal program code into an online AI assistant to find errors.
• A marketing manager uses a free AI image generator for the next PR campaign.

That is exactly what shadow AI is: The use of AI applications by employees without knowledge, testing, or approval from the IT department. Similar to the well-known “shadow IT,” this creates uncontrollable risks because sensitive data leaves your company unsecured.

The 3 biggest risks: Why you need a strategy now

The well-intentioned increase in the efficiency of your employees can quickly become a nightmare for your company.

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The main hazards are:

1. The data protection disaster: As soon as sensitive data, including customer information, strategy papers, financial data, is loaded onto external servers by AI providers without clear regulations, you potentially lose control. This is a clear violation of the GDPR and secret information receives an additional owner.
2. The safety gateway: Unsecured AI tools are a popular target for hackers, for example due to prompt injection or lack of content filters and security scans. Even worse: Your confidential information can flow into AI providers' training data and thus potentially become public.
3. The legal time bomb: Who is liable if an AI creates copyrighted texts or images or passes on customer data through you? Without clear regulations, you are exposing your company to incalculable legal and financial risks.

The solution: From shadow to light in 3 steps

Bans alone don't work. They only drive employees deeper into the shadows. A proactive approach is the only way to regain control and make innovation secure.

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Step 1: Empower employees instead of unsettling
The most common reason for shadow AI is ignorance. Your employees need clear knowledge of the risks and rules for using AI safely.
‍Our recommendation: Invest in professional AI competency training. On our platform certrady.eu Learn your teams under the guidance of renowned AI legal experts Dr. Jur. Thomas Schwenke  (Expert and legal advisor in data protection, AI and marketing law.) practical how they use AI tools productively AND securely. This is how you turn uncertainty into sustainable competence.

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Step 2: Provide clear game rules and secure tools
Create an official AI policy (AI Governance). Define which tools are allowed and which are not. More importantly, offer your employees a secure, company-internal alternative. With our AI platform nele.ai Give your teams a proven and powerful tool that ensures data protection and compliance from the ground up.

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Step 3: Create a culture of trust
Encourage your employees to openly address new ideas and tools. Create a process in which innovations can be securely tested together with the IT department. This is how you channel your employees' drive in a positive, safe direction.

Your next step: Take action now!

In your company, shadow AI is not a question of “if,” but only of “when” and “how strong.” Waiting is not an option. The risks are too high, but the opportunities are enormous if done the right way.

Take control now. Turn shadow AI risk into a strategic advantage

Our experts from nele.ai support you in doing so. Whether by quickly implementing AI competency training for your employees with certrady.eu or the development of a comprehensive AI strategy for your company — we have the right solution.

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Contact our experts today for a non-binding strategy discussion and protect your company before damage occurs.