Businesses rely on more technology than ever to communicate, collaborate, store information, and complete everyday tasks. But what happens when employees begin using software, apps, devices, or online services that the company’s IT team doesn’t know about?
This is known as shadow IT, and while it often starts with employees simply trying to work more efficiently, it can create security and data management risks for a business.
What Is Shadow IT?
Shadow IT refers to technology that employees use for work without the knowledge or approval of the person or team responsible for managing the company’s IT environment.
Examples can include an employee using a personal cloud storage account to share work files, downloading an unapproved productivity app, using personal devices for business tasks, or signing up for an AI tool with a company email address without consulting IT.
In many cases, there is no malicious intent. An employee may simply find a tool that makes a task faster or solves a problem. The issue is that the business may have no visibility into how that technology stores, accesses, or protects company information.
Why Is Shadow IT a Security Risk?
One of the biggest problems with shadow IT is the loss of control over business data.
Approved technology can be evaluated for security, access permissions, updates, data storage practices, and compatibility with existing systems. When employees independently introduce new technology, those safeguards may be bypassed.
For example, sensitive company or customer information could be uploaded to an unapproved cloud service. An employee might also use an application with weak security controls or continue using an account after leaving the company.
If IT doesn’t know that the application or account exists, it becomes much harder to protect it.
AI Tools Have Created a New Shadow IT Concern
The rapid adoption of generative AI has added another layer to the issue.
Employees may use AI platforms to draft documents, summarize information, analyze data, or complete other work-related tasks. If employees enter confidential company, customer, financial, or proprietary information into an unapproved AI platform, the organization could lose control over how that information is handled.
Businesses should establish clear policies outlining which AI tools are approved and what types of information employees are permitted to enter into them.
How Can Businesses Reduce Shadow IT?
Preventing shadow IT doesn’t necessarily mean banning every new application employees discover. Instead, businesses need visibility and clear processes.
Create an inventory of approved software, devices, cloud services, and other technology used throughout the organization. Establish a simple process for employees to request new tools and provide clear guidelines about personal devices, cloud storage, AI platforms, and company data.
Employee education is equally important. When people understand why certain tools require approval, they are more likely to recognize the potential risks.
Know What Technology Your Business Is Using
You can’t properly secure technology you don’t know exists. As businesses adopt more cloud applications, connected devices, and AI-powered tools, maintaining visibility over the technology employees use is becoming increasingly important.
A proactive IT strategy can help businesses identify potential gaps, establish appropriate technology policies, and provide employees with secure tools that still allow them to work efficiently.
At Managed Business Solutions (MBS), we help businesses better manage their technology environments while keeping security, productivity, and long-term needs in mind.
Contact MBS today to learn how proactive IT management can help protect your business.
