Source: The National Law Review

The National Law Review discusses the findings of a recent survey of managers that reveals a significant and growing trend of "shadow AI" in the workplace. This term refers to the use of Artificial Intelligence tools by employees without the official approval or oversight of their employers. The survey highlights that while many companies are still in the process of developing formal AI policies and procuring enterprise-level solutions, their employees are already widely using publicly available generative AI platforms to assist with their daily tasks. This discrepancy creates substantial risks for businesses, as the use of unsanctioned tools falls outside of corporate governance and security protocols.

The article details the primary risks associated with this unauthorized AI usage, including data privacy breaches, the potential for intellectual property leakage, and cybersecurity vulnerabilities. When employees input sensitive company or client information into unvetted AI tools, that data can be exposed or used by the AI provider in ways that violate confidentiality agreements and data protection regulations. Moreover, the output from these tools may be inaccurate or biased, leading to poor business decisions or the creation of flawed work product. The survey's findings serve as a stark warning to organizations, underscoring the urgent need to establish clear and comprehensive AI usage policies, provide employee training on acceptable use, and implement sanctioned, secure AI solutions to mitigate these significant risks.