AI is already being used inside many businesses, and much of it is shadow AI that leaders cannot see.<\/p>\n
The problem is that business owners and IT teams may not always know where, how or by whom.<\/p>\n
An employee might use ChatGPT to summarise a document.<\/p>\n
A manager might use an online AI tool to draft a report.<\/p>\n
A team might install a meeting assistant to capture notes.<\/p>\n
Someone might subscribe to a browser extension, chatbot or AI writing tool because it helps them get work done faster.<\/p>\n
That behaviour is understandable.<\/p>\n
Most employees are not trying to create a cyber security risk. They are trying to save time, reduce admin and work more efficiently.<\/p>\n
But when AI tools are used without approval, security review or oversight, they create a new challenge for businesses.<\/p>\n
That challenge is called Shadow AI<\/strong>.<\/p>\n Shadow AI is the use of AI tools without an organisation\u2019s approval, security review or oversight.<\/p>\n It can include:<\/p>\n The activity may be invisible to the IT team, even when it becomes part of a real business process.<\/p>\n This is what makes it risky.<\/p>\n A business may believe it has not adopted AI because it has not formally purchased a platform or rolled out a company-wide strategy.<\/p>\n Meanwhile, employees may already be using AI tools every day to draft emails, analyse documents, summarise meetings or help with customer work. We explored this in more detail in your employees are already using AI<\/a>.<\/p>\n The organisation has adopted AI informally, whether it realises it or not.<\/p>\n Shadow AI does not usually begin with bad intentions.<\/p>\n It often begins with practical pressure.<\/p>\n Employees are expected to handle more information, respond quickly, maintain quality and keep work moving. When a tool can help them complete a task in minutes, waiting for a formal approval process may feel unrealistic.<\/p>\n If existing systems feel slow, difficult or limited, people will naturally look for their own solutions.<\/p>\n That might mean using AI to:<\/p>\n From the employee\u2019s point of view, this can feel sensible.<\/p>\n From the business\u2019s point of view, it creates a visibility problem.<\/p>\n If leaders do not know which tools are being used, they cannot properly assess what information is being shared, whether the tool is appropriate, or what risks are being introduced.<\/p>\n The main concern with Shadow AI is not the tool itself.<\/p>\n It is the information being entered into it.<\/p>\n Employees may copy and paste sensitive business information into AI prompts without realising the possible consequences.<\/p>\n That information could include:<\/p>\n Once information leaves an approved business environment, the organisation may not know where it is stored, how long it is retained, whether it is used to improve a model or who can access it.<\/p>\n That creates several connected risks.<\/p>\n Confidential information could be exposed.<\/p>\n Personal data could be processed without an appropriate legal basis. The ICO guidance on AI and data protection<\/a> is a useful reference for UK businesses.<\/p>\n Intellectual property could be shared without suitable contractual safeguards.<\/p>\n An AI-generated answer could also be used in a client communication, report or decision without being properly checked.<\/p>\n The result could be a data protection issue, a contractual dispute, an inaccurate decision or a loss of trust.<\/p>\n Shadow AI is not only a cyber security issue.<\/p>\n It is a governance issue.<\/p>\n If AI tools are being used without approval or oversight, business leaders cannot answer important questions such as:<\/p>\n These are not abstract questions.<\/p>\n They affect how businesses handle data, protect customers, manage risk and make decisions.<\/p>\n AI governance does not mean creating unnecessary bureaucracy.<\/p>\n It means having a clear, practical way to decide what tools are acceptable, what information can be used, who owns each use case and when human review is required.<\/p>\n Some businesses respond to AI risk by trying to ban AI completely.<\/p>\n That may feel like the safest option, but it rarely solves the underlying problem.<\/p>\n If employees see AI as genuinely useful, a blanket ban may simply push usage further out of sight. Staff may become less likely to disclose which tools they are using, and the business loses the opportunity to guide behaviour properly.<\/p>\n The better response is to understand what people are trying to achieve.<\/p>\n Are they trying to reduce admin?<\/p>\n Write better emails?<\/p>\n Summarise meetings?<\/p>\n Find information faster?<\/p>\n Create first drafts?<\/p>\n Analyse documents?<\/p>\n Once you understand the need, you can provide safer options, clearer boundaries and approved tools that help employees work efficiently without creating unnecessary risk.<\/p>\n The aim should be simple:<\/p>\n Make secure AI use easier than unsafe AI use.<\/strong><\/p>\n There is an important difference between using an approved business AI platform and using a personal public AI account.<\/p>\n For example, Microsoft Copilot used through a work account can connect to an organisation\u2019s identity system, apply existing permissions and support administrative controls for audit, retention and information protection.<\/p>\n That gives the business greater visibility and makes investigation easier.<\/p>\n A personal or public AI account may not offer the same safeguards.<\/p>\n It may not be linked to the employee\u2019s business identity.<\/p>\n Provider terms may vary.<\/p>\n Interaction records may not be available to administrators.<\/p>\n Users may also connect extensions or external data sources without central review, making risk harder to assess and manage.<\/p>\n Approved tools do not remove every risk.<\/p>\n But they give the business a much stronger position than unmanaged AI use.<\/p>\n It is important to be clear.<\/p>\n Using a managed tool such as Microsoft Copilot does not automatically make every AI use case safe.<\/p>\n Copilot works with the permissions already in your Microsoft environment.<\/p>\n That means excessive access remains a risk.<\/p>\n If a user can already access files they do not need, Copilot may make those files easier to find.<\/p>\n If SharePoint, Teams or OneDrive permissions are too broad, AI can surface information that should have been better controlled. Our Microsoft 365 services<\/a> can help you get permissions in shape first.<\/p>\n This is why businesses should not treat AI adoption as a standalone software decision.<\/p>\n Before rolling out tools such as Microsoft Copilot, organisations should review:<\/p>\n AI can only be as controlled as the environment around it.<\/p>\n A reported 2023 incident involving Samsung shows how easily this can happen. An engineer reportedly uploaded sensitive source code to ChatGPT while seeking assistance. Samsung later restricted employee use of generative AI services.<\/p>\n The lesson is not that every AI tool is unsafe.<\/p>\n The lesson is that confidential material can enter an external AI service when employees are trying to solve a practical problem quickly.<\/p>\n That is exactly why businesses need clear rules.<\/p>\n Employees should know:<\/p>\n Most people want to do the right thing.<\/p>\n They need clear guidance that fits the way they actually work.<\/p>\n Every business will have its own rules, but as a starting point, employees should be careful with any information that is confidential, personal, commercial or sensitive.<\/p>\n That may include:<\/p>\n A good AI policy should provide clear examples.<\/p>\n Generic warnings such as \u201cdo not enter sensitive data\u201d are often too vague.<\/p>\n Employees need to understand what that means in the context of their role.<\/p>\n Businesses do not need to solve everything overnight.<\/p>\n A practical approach can make a big difference.<\/p>\n Start by understanding the current position.<\/p>\n Which AI tools are employees using?<\/p>\n Are they using personal accounts?<\/p>\n Are any paid subscriptions active?<\/p>\n Are browser extensions or meeting bots in use?<\/p>\n Are teams using AI as part of regular workflows?<\/p>\n You cannot manage what you cannot see.<\/p>\n Give employees clear guidance on which AI tools are approved for business use.<\/p>\n This may include Microsoft Copilot, approved meeting tools or other AI platforms that have been reviewed.<\/p>\n If a tool is not approved, explain how staff can request a review rather than leaving them to make their own decision.<\/p>\n Explain what information can and cannot be used with AI.<\/p>\n Use real examples from the business.<\/p>\n For example:<\/p>\n The clearer the rules, the easier they are to follow.<\/p>\n If your organisation is considering Microsoft Copilot, review access first. Our guide to getting teams onboard with Microsoft 365 Copilot<\/a> covers the rollout side.<\/p>\n Check who can see what across SharePoint, Teams, OneDrive and shared mailboxes.<\/p>\n Remove unnecessary permissions.<\/p>\n Tighten external sharing.<\/p>\n Separate administrator accounts from everyday accounts.<\/p>\n Make sure access reflects what people actually need to do their jobs.<\/p>\n Different teams use AI in different ways.<\/p>\n Finance, HR, legal, sales, operations and technical teams may all need different guidance.<\/p>\n Training should cover:<\/p>\n The goal is not to frighten people away from AI.<\/p>\n It is to help them use it safely.<\/p>\n Mistakes will happen.<\/p>\n Someone may paste the wrong information into a tool.<\/p>\n An AI output may be inaccurate.<\/p>\n A browser extension may behave unexpectedly.<\/p>\n Employees should know how to report concerns without fear of blame.<\/p>\n This helps the business respond quickly and improve the process.<\/p>\n Shadow AI also affects your wider cyber security<\/a> position.<\/p>\n If AI tools are being used without review, you may not know:<\/p>\n This is why AI governance needs to sit alongside cyber security.<\/p>\n It is not only about choosing the right tool.<\/p>\n It is about protecting identities, controlling data, managing access, training users and monitoring activity.<\/p>\n At SOD-IT, we help businesses adopt AI in a practical, secure and manageable way.<\/p>\n That starts with understanding your current environment.<\/p>\n We can help review:<\/p>\n From there, we can support your business with:<\/p>\n The aim is not to stop useful innovation.<\/p>\n It is to give your team safe, approved ways to benefit from AI while protecting the business.<\/p>\n For many organisations, the honest answer is probably yes.<\/p>\n That does not mean your business has failed.<\/p>\n It means your employees are trying to work more efficiently.<\/p>\n The opportunity now is to bring that activity into the open, put sensible controls around it and make sure AI is being used in a way that supports the business rather than creating hidden risk.<\/p>\n Shadow AI becomes a problem when nobody can see it, review it or manage it.<\/p>\n With the right approach, your business can reduce that risk and give employees the tools they need to work smarter and more securely.<\/p>\n If you would like to understand where AI is already being used in your organisation, or how to prepare safely for Microsoft Copilot, speak to SOD-IT<\/a> about an AI readiness assessment.<\/p>\n \ud83d\udcde 0141 488 1533<\/strong>
\n<\/div>\nWhat Is Shadow AI?<\/h2>\n
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\n<\/div>\nWhy Employees Use Shadow AI<\/h2>\n
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\n<\/div>\nWhy Shadow AI Matters<\/h2>\n
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\n<\/div>\nShadow AI Is a Governance Problem<\/h2>\n
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\n<\/div>\nWhy a Blanket Ban Usually Does Not Work<\/h2>\n
\n<\/div>\nManaged AI Tools Reduce Risk<\/h2>\n
\n<\/div>\nMicrosoft Copilot Still Needs Good Permissions<\/h2>\n
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\n<\/div>\nReal-World Lesson: Convenience Can Create Risk<\/h2>\n
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\n<\/div>\nWhat Information Should Employees Avoid Entering Into Public AI Tools?<\/h2>\n
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\n<\/div>\nHow to Reduce Shadow AI Risk<\/h2>\n
1. Find out what is already being used<\/h3>\n
\n<\/div>\n2. Create an approved tools list<\/h3>\n
\n<\/div>\n3. Set clear data rules<\/h3>\n
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\n<\/div>\n4. Review Microsoft 365 permissions<\/h3>\n
\n<\/div>\n5. Train staff by role<\/h3>\n
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\n<\/div>\n6. Create a safe reporting route<\/h3>\n
\n<\/div>\nShadow AI and Cyber Security<\/h2>\n
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\n<\/div>\nHow SOD-IT Can Help<\/h2>\n
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\n<\/div>\nIs Shadow AI Already in Your Business?<\/h2>\n
\n\ud83d\udce7 support@sod-it.co.uk<\/strong><\/a>
\n\ud83c\udf10 www.sod-it.co.uk<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"