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The transformative power and rapid uptake of artificial intelligence have drawn users and businesses alike. By 2030, the AI market will surpass $826 billion. With the rising adoption of generative AI, Gartner reports that by next year, 30 percent of enterprises will automate at least half of their network traffic.

But here comes the speed breaker. With AI tools so widely accessible, employees are bringing unsanctioned AI tools to work, such as AI chatbots, machine learning models for data analysis, and coding review assistants. According to a Microsoft study, 80 percent of employees last year were using unauthorized apps. Given that 38 percent of users exchange sensitive information with AI tools without company approval, a new threat known as shadow AI is hatching far-reaching security risks, including data exposure, inaccurate business decisions, and compliance issues.

More employees are incorporating AI tools into their daily work routines. Marketing teams are finding the magic of ChatGPT good for automating email and social media campaigns and creating images. Finance teams are using AI data visualization tools to create patterns that provide deeper insight into company expenditures. Despite impressive outcomes, these tools are subject to shadow AI risk if organizations are unaware of their use.

Rather than pulling company-sanctioned material, a customer service team resorting to unauthorized AI chatbots to answer a customer query may betray inconsistent or misleading information, potentially sharing confidential or proprietary data. Without altering the nature of work, shadow AI is substituting some form of human work and granting more autonomy to AI, introducing novel vulnerabilities.

For example, under shadow IT, a Salesforce analyst is still performing the same underlying work. However, the same analyst using unauthorized AI tools to interpret customer behavior based on a proprietary data set can inadvertently reveal sensitive information in the process. Because of the abuse of shadow AI, most CISOs (75 percent) think insider threats are a greater risk than external attacks.

More on AI increasing insider threat risk on Inc.

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