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Unauthorized artificial intelligence (AI) tools are infiltrating businesses, creating significant security and compliance risks that demand immediate action. This “shadow AI” phenomenon is not a future concern—it’s a present reality that threatens data integrity, operational consistency, and regulatory compliance across industries.
Think of shadow AI as the new “bring your own device” (BYOD) challenge, but with far greater implications. Just as BYOD policies had to evolve to manage the risks of personal smartphones and laptops in the workplace, organizations now face a similar but more complex challenge with AI. Instead of personal devices, we’re dealing with powerful AI algorithms that can process sensitive company data—often without proper oversight or security measures.
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Imagine a scenario where your sales team is using an AI-powered tool to generate personalized proposals without IT approval, or your document processing staff is leveraging unauthorized AI for data extraction. These are not hypothetical situations—they’re occurring daily across industries, often flying under the radar of IT departments and governance teams.
Recent data from Keypoint’s AI Readiness Survey paints a stark picture: While more than 85% of organizations are already using some form of AI, only 65% have an AI use policy in place. In the print and document solutions sector, where we handle sensitive client information daily, this gap is particularly alarming.
The risks are significant and immediate. Unauthorized AI usage can lead to data breaches, compromising client confidentiality. This can result in inconsistent document processing that could potentially damage your reputation for reliability. Moreover, in a highly regulated industry, shadow AI could lead to compliance violations with hefty financial and legal consequences.
However, it’s crucial to recognize that the rise of shadow AI also signals a genuine need for AI-powered solutions. Employees turn to these tools because they see the potential for significant improvements in their daily work. As leaders, you face a dual challenge: You must address the risks of shadow AI within your own organization and for our clients, while also harnessing the power of AI to drive innovation and efficiency.
The first step is to conduct an AI audit in your organization. You might be surprised to discover the extent of unauthorized AI use. From there, developing a comprehensive AI policy is crucial. This isn’t just about restriction; it’s about creating a framework for responsible AI adoption that can drive your business forward. For our clients, we need to position ourselves as partners in their AI journey. This means offering AI readiness assessments; helping to implement governance structures; and providing secure, compliant AI alternatives that meet the needs currently being filled by shadow AI. The financial implications of ignoring shadow AI can be severe. While addressing the issue requires investment, the cost of a data breach or compliance violation far outweighs the proactive measures needed to manage AI use effectively.
Keypoint Intelligence Opinion
Don’t wait for potential crises to act. Begin by assessing your organization’s AI use and governance today. Conduct an internal audit, develop a comprehensive AI policy, and offer your clients AI readiness assessments. By taking these steps, you’ll not only mitigate risks, but also position your business to leverage AI's benefits securely and effectively. Our upcoming analysis report will provide further insights, but the time to address shadow AI is now. Your proactive approach will safeguard your business and clients while driving innovation in print and document solutions.
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