AI Is Everywhere—and Growing Fast
The annual Microsoft Ignite conference in San Francisco made one thing very clear: AI isn’t just a trend; it’s a tidal wave reshaping how we work. From Copilot in Microsoft 365 to advanced automation in Azure, AI is becoming deeply embedded in everyday tools. This promises incredible productivity gains—but it also introduces new risks that many organizations aren’t prepared for.
One of the most pressing risks? Shadow AI.
What Is Shadow AI?
Shadow AI refers to employees using AI tools without organizational oversight or approval. It’s the AI equivalent of “shadow IT,” where unsanctioned apps creep into workflows. Except now, the stakes are higher because AI tools can:
Process sensitive business data
Generate outputs that influence decisions
Store or transmit intellectual property outside your control
Why Shadow AI Is a Growing Problem
AI adoption is accelerating faster than governance frameworks. Employees are curious, and tools like ChatGPT, Copilot, and other AI assistants are just a click away. Without clear policies, staff may:
Paste confidential data into public AI tools
Use AI-generated content without validation
Introduce compliance and security risks unknowingly
It’s just as easy as performing a google search – you load up the webpage, pop in your question, and the AI agent will respond. I’ve seen examples, and indeed marketing, with prompts like “Rephrase this email so it’s more professional”, or “Shorten this text”. People are using AI as a proof-reader – how many of them know that – by default – any conversations with ChatGPT is saved to train future AI models, unless you opt out.
The Risks You Can’t Ignore
Data Leakage
Sensitive information shared with external AI services can leave your organization vulnerable.
Compliance Violations
AI usage without governance can breach GDPR, or industry-specific regulations.
Reputation Damage
Incorrect or biased AI outputs can lead to poor decisions or public embarrassment.
What Should You Do?
Educate Your Workforce
Train employees on safe AI practices. Make it clear what data can and cannot be shared.
Create AI Usage Policies
Define approved tools and outline acceptable use cases. Include guidance on data handling.
Monitor and Govern AI Usage
Implement solutions to track AI adoption and prevent shadow AI from becoming a security blind spot.
Shadow AI is already here, and ignoring it could lead to costly mistakes. Now is the time to act: educate your teams, set policies, and build a culture of responsible AI use.
There are tools you can use that can restrict popular AI tools before satisfying some of the privacy settings.
Want to learn how Odyssey can help with preventing Shadow AI? Give us a call, 01642 661888.
