AI in the Shadows | Issue 14

Welcome to Issue 14 of unfolding ai. Inspired by the long dark nights and halloween, let’s look a little into the shadows. I am seeing some alarming ‘Ban AI’, messages arising in the press, and in some organisations. It’s an established bad idea to ban technology that’s publically available.

Best regards,

Paul, Co-founder (and newsletter editor)

The ask me anything event

If you are interested in attending the free ask me anything live event, here is the link to vote on which diary slots work the best for you.

I will collate the results on Friday, watch out for a following email advising of how to book in and join.

The rise of Shadow AI

There was a time when Shadow IT—the use of unofficial digital tools by employees—was the elephant in the room for many businesses. Information Systems (IS) departments fought a losing battle trying to clamp down on these rogue solutions, frustrating users in the process. But over time, we all learned to adapt. The realisation dawned that the goal wasn't to eliminate these tools, but to find a way to integrate them safely into our operations.

Now, we find ourselves at a similar crossroads with Shadow AI. Just as with Shadow IT, outright banning is not the solution. It merely drives the technology underground, forcing us to relive the risks and challenges we've already faced and surmounted with Shadow IT. Business leaders need to understand that the aim should not be to hinder AI but to regulate its usage in a way that aligns with the company's strategic goals and compliance requirements.

The Path Forward: Embracing AI Responsibly

AI isn't just a trend; it's an integral part of our future landscape. For business leaders, the focus should be on enabling a culture of responsible AI use. This means creating an environment where business units feel empowered to experiment within defined guidelines.

Meanwhile, IS departments need to shed their traditional role as gatekeepers and adopt a more supportive stance. They must be prepared to work behind the scenes, ensuring that Shadow AI transitions smoothly into mainstream operational frameworks.

Key Takeaways for Leadership

1. Shadow IT evolved from a point of contention to a functional part of business operations. It's time for Shadow AI to undergo a similar mindset change.

2. Banning AI is not an option. It will merely force the technology into the shadows, reviving the challenges we've already overcome with Shadow IT, this will be wasted effort.

3. Both the business and IS sectors must adapt. Business units need to seek advice on best practices for AI, while IS must be prepared to provide that guidance, even if it means working in the shadows for a while.

By adopting a balanced, strategic approach, we can safely integrate AI into our business models. The lessons learned from our journey with Shadow IT provide a blueprint for how to deal with Shadow AI, allowing us to harness its benefits while mitigating its risks.