How Software Asset Management Helps Monitor and Manage Shadow AI

Rischi Risks Related to the Use of Untracked AI Solutions (and Solutions to Prevent Them) 

A brief overview of the risks associated with the use of AI applications in the enterprise and the key role Software Asset Management can play in managing and proactively monitoring non-compliant situations.

vIn today’s technological landscape, Artificial Intelligence (AI) represents a powerful tool that is revolutionizing the workplace, making it faster and more efficient. However, when these technologies are used without the oversight of the IT department, significant risks emerge for businesses, a challenge known as Shadow AI.  

The concept stems from the evolution of the term "Shadow IT," which refers to the use of business applications and software without the involvement or supervision of the IT department. With the increasing adoption of AI tools, such as ChatGPT and other digital assistants, the risk of losing control over untracked usage has grown exponentially.  

Shadow AI refers to the unauthorized or unmonitored use of AI applications, often leading to the processing of sensitive and critical data, without any control over the processes they trigger. 

Shadow AI: What Are the Risks?

LThe uncontrolled use of AI technologies can lead to numerous issues, including: 

  • Accidental Disclosure of Sensitive Data: Tools used without supervision might transmit or store critical business information, on external servers, exposing the organization to security breaches. 
  • Data Management Errors: The absence of clear guidelines can lead to incorrect or misconfigured processeswith serious consequences for regulatory compliance and internal governance.  
  • cyber-attacks: Exposing confidential data through untracked AI usage increases the risk of cyberattacks. Several studies and articles confirm that such data can be exploited for phishing and social engineering attempts with a higher likelihood of success.
  • Hidden Costs and Technical Debt: One of the most critical aspects of Shadow AI is the risk of accumulation of technical debt. If these tools are implemented without prior analysis, they may cause significant future integration issues with existing company systems, complicating operational management and increasing costs to reconfigure or replace incompatible technologies. 
  • Critical Dependency on Unmonitored AI Processes: If a process based on an unofficial AI application were to fail or stop workingthe consequences could be catastrophic. The disruption could block entire business workflows, causing operational delays, financial losses, and difficulties in normal operations. It's like a house of cards collapsing suddenly, revealing the fragility of an unsupervised structure. 

These risks underscore the importance of a proactive and structured approach to monitoring and managing the AI applications used within the company. 

How to Defend Against Shadow AI

Monitoring access to each AI application via dedicated APIs might seem like an ideal solution, but in practice , it proves inefficient and unsustainable. Creating a custom API for each tool or application used would require a massive investment of technical resources and timenot to mention the complexity of maintaining and constantly updating these integrations. 

Moreover, the uncontrolled proliferation of new AI applications makes this strategy impractical, as the technological landscape evolves more quickly than traditional IT infrastructures can adapt.  

For this reason, it is crucial to adopt more centralized and automated approaches, such as the use of Software Asset Management (SAM) processes and tools, capable of detecting and monitoring all applications used by employees without the need to create bespoke solutions for each one. 

Thanks to SAM processes and technologies, it is possible to:  

Monitor Software Usage in the Company 

With these tools, it becomes possible to automatically detect all applications used on company devices, including unauthorized software and browser-based access. This is done by analyzing usage data from endpoints, networks, and business systems: this allows accurately track of software is running, how often, and in which contextsWith this complete visibility, non-compliant individuare or unapproved AI tools and uses can be quickly identified, allowing for timely intervention to reduce associated risks.

Generate Detailed Reports to Identify Who Handles Critical Information 

Having detailed analyses of AI platform usage helps identify who is using these tools, in which departments, and for what purposes. These reports are essential not only for mapping activities but also for ensuring that access to sensitive data is limited to authorized personnel, in compliance with company policies and data protection regulations. 

Increase Internal Awareness 

Knowing which applications are used in the company is the first step in defining usage policies and mitigating risks. Usage policies must include an approval process by the IT departmentto ensure compliance with security standards and company regulations. At the same time, it's essential to raise employee awareness of the importance of being cautious when sharing datato avoid exposing sensitive information to unauthorized or insecure tools. 

Knowledge is always the best choice. Only with a a structured and informed approach , such as SAM , can the advantages of Artificial Intelligence be leveraged without compromising the company's security and reputation. 
 
At WEGG, we offer expert consultancy in this field, , helping you effectively monitor and manage your enterprise applications, including unauthorized ones. By using advanced IT visibility technologies, such as the toolsfrom our partner Flexera, we can support you in obtaining a real-time comprehensive overview of your software ecosystem. 

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