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Blog

Shadow AI: Are Your Company’s Proprietary Secrets at Risk?

Artificial intelligence (AI) is becoming an integral tool for many businesses, offering capabilities that streamline operations and improve efficiency. However, with these benefits come significant risks, particularly for companies that rely on proprietary information. Shadow AI refers to the use of AI applications, often without proper oversight, which can lead to the unintentional exposure of sensitive company data and intellectual property.

The Problem for Emerging Companies

As AI tools are increasingly adopted in the workplace, they bring with them the risk of exposing valuable company secrets. Employees might use AI to transcribe meetings, write code, or generate chatbot prompts. While these tasks seem routine, they can unintentionally leak proprietary information if employees use public AI platforms instead of secure, private ones.

Dell emphasizes the importance of recognizing this risk: “AI misuse can lead to the exposure of confidential data and potentially compromise your business’s competitive edge.” Even when companies implement private, secure AI platforms, the risk remains if employees accidentally use more public versions that do not guarantee the same level of data protection.

This challenge is particularly acute for emerging companies that must comply with strict regulatory standards. Without the right controls in place, Shadow AI can undermine efforts to maintain compliance and protect intellectual property.

Managing the Risk of Shadow AI

Addressing Shadow AI requires a strategic approach that combines technology with policy and education. Here are some key steps to consider:

  1. Invest in Secure AI Platforms: One of the most effective ways to protect your data is to use a private, secure AI platform. Dell highlights that “using AI platforms that promise not to use your data to train models for external users” is crucial for maintaining data integrity. Companies like Microsoft and Google offer such platforms, though they may come with a cost. This investment can significantly reduce the risk of your data being exposed.
  2. Strengthen Firewall and SASE Solutions: Implementing robust firewall or Secure Access Service Edge (SASE) solutions, such as Cisco Umbrella, can help redirect users to your secure AI platform. This approach, combined with use-case monitoring, whitelisting, and alert systems, forms a comprehensive Data Loss Prevention (DLP) strategy that can prevent accidental data leaks.
  3. Educate and Train Employees: Dell’s experts stress the importance of employee training in preventing AI misuse: “Employees need to be aware of the risks associated with AI and trained to use these tools securely.” Just as companies train employees to avoid phishing, they must also educate them about the dangers of Shadow AI. Clear policies and regular training sessions can reinforce the importance of using approved AI tools and avoiding risky behaviors.
  4. Ongoing Monitoring and Compliance: Regular monitoring of AI usage and adherence to company policies is essential. By staying vigilant, businesses can quickly identify and mitigate any risks associated with Shadow AI. This proactive approach ensures that your company remains compliant with industry regulations and protects its proprietary information.

Conclusion: Safeguarding Your Company Against Shadow AI

Shadow AI poses a real threat to the security and integrity of your company’s proprietary information. By taking a proactive approach—investing in secure AI platforms, enhancing your cybersecurity measures, training employees, and continuously monitoring AI usage—you can significantly reduce the risks. As Dell advises, “The key to protecting your business lies in understanding the risks and taking the necessary steps to mitigate them.”

For further details on how to mitigate the risks of AI misuse, refer to Dell’s comprehensive guide here.

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