by Rocky McGuire
Date Published October 20, 2025 - Last Updated October 20, 2025

 Shadow IT has transformed into Shadow AI. In the background of the work we are doing in our organizations is a wave of employees who are finding ways to leverage AI tools to make their life easier.


AI Governance has never been more critical to the enablement and security of organizations.

IT leaders are familiar with governance – making sure policies and procedures are up to date, followed and make sense with the business objectives. Chang Management, ensuring the next release doesn’t bring the organization to its knees in ruin, is commonplace. Tech support has even started owning the full lifecycle of a break/fix, making sure all the right teams are engaged and driving to resolution.

Governance around AI can help mitigate risks, such as your latest line of code or secret sauce being unknowingly leveraged to train external LLMs.

Arguably more importantly, strong AI Governance can give you greater insight into what AI functionality will enable better engagement and outcomes for your employees.

Here are the steps we can take to ensure Shadow AI doesn’t become the wild, wild West:

#1: Start by knowing what your people want and why

Start with this question: “What AI tools are you using today and what problem is it helping them solve?” This will enable you to explore what is possible with the existing tech stack you have in place and how you can better equip your teams to use pre-vetted and secure tech.

This is not a one and done step. Leaders must keep asking their people what problems they are trying to solve and identify how they can better equip them in achieving that.

#2: Inform your entire organization on AI Security

Forbes wrote in October “26% of organizations currently have a CAIO, representing a dramatic surge from just 11% in 2023.” That means 74% don’t have a “Chief AI Officer.” IT leaders must partner with the business to drive awareness of best practices in AI security.

#3: Train on effective use of AI

We know the importance of enabling our organizations with the right technology. This is the aspiration of tech leaders who desire to drive better business outcomes. Enabling our organization goes beyond picking a useful tool. The tools we choose to use will only be as useful as the level at which the person using said tool allows. Tech leaders must partner with their organizations and help equip people with the skills required to get value they aim to bring through AI.

 

#4: Weigh the benefits of blocking non-approved AI tools

This may feel harsh or like a step that stifles creativity. In reality, it’s a step that could prevent your organization from disastrous headlines and drive usage of the tools that you know are secure.

It’s not about gatekeeping technology and AI. If you know what business problems employees are using AI to solve, train employees on AI security and getting the most out of the tools you have in place. The ‘why’ behind disabling access to risky AI tools should become clear.

Shadow AI happens when leaders aren’t listening to their people and the problems they are trying to solve, aren’t enabling their teams with the right knowledge and skills and aren’t taking proper precautions.

These steps are not all ‘Governance’ tasks as we know them. However, they are all crucial when we discuss governing (and equipping) our teams with the right information and tools to be successful.

Tag(s): supportworld, artificial intelligence

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