The MIT State of AI in Business report highlights a paradox in AI adoption: while 40% of organizations invest in enterprise LLM subscriptions, 90% of employees leverage AI tools daily, often through personal accounts. This phenomenon fuels the rise of “Shadow AI,” which introduces significant security risks as employees circumvent corporate controls. Current governance strategies, like blocking access to AI applications, fail to address true usage, as employees will simply switch to alternative tools, often via personal devices.
Harmonic Security emphasizes the necessity of Shadow AI discovery to maintain compliance and security. An AI asset inventory is crucial for governance, particularly under frameworks like the EU AI Act. Companies need to understand their AI usage thoroughly to separate low-risk from high-risk activities. Through continuous monitoring and intelligent policies, organizations can empower employees while protecting sensitive data. Embracing proactive governance over restrictive measures is essential for managing Shadow AI effectively.
For more insights on AI governance, contact Harmonic Security.
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