ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Understanding the AI Trend 'Shadow IT' That Boosts Careers, But Poses Challenges for Companies

Shadow IT may seem to benefit workers but it poses significant risks to organizations.
PUBLISHED JUN 17, 2024
Cover Image Soure: Unsplash | Photo by Arian Darvishi
Cover Image Soure: Unsplash | Photo by Arian Darvishi

The rise of remote work and the rapid adoption of cloud services has birthed a new phenomenon called Shadow IT. The term refers to the unsanctioned use of IT systems, hardware, software, or tools, without the approval of the IT department. While the trend seems to benefit employees across industries, it has increased the risk of exposure to cyber threats as employees can make common cybersecurity mistakes. Here’s all about the rising trend of Shadow IT. 

Representative Image | Unsplash | Photo by rivage
Representative Image | Unsplash | Photo by rivage

“Shadow IT” is the use of unapproved tools, hardware, or software by an employee to execute official tasks, as per Forbes. This may involve accessing, storing, or sharing a company’s data in an unauthorized way. The phenomenon is comparable to Shadow AI which is the unsanctioned use of AI tools like ChatGPT to execute tasks. In Shadow IT, workers use tools that they find convenient or easier to use than the official ones. There are both pros and cons of Shadow IT and experts believe the latter weighs more.



 

A study conducted by CISCO found that about 80% of company employees adopt “Shadow IT” for convenience and productivity. The workers feel they can work more efficiently or effectively using personal devices or third-party software, instead of the company’s sanctioned resources. One benefit of this is that it frees up IT resources of the company as workers manage as per a TechTarget report.

Representative Image | Unsplash | Photo by Kevin Bhagat
Representative Image | Unsplash | Photo by Kevin Bhagat

Shadow IT can help IT leaders identify the gaps in their systems. The phenomenon typically happens when workers feel they're not getting what they need from the tech that IT implemented. Thus, by identifying these gaps, the IT teams can accelerate improvement and innovation to fill the gaps. This can help companies improve delivery and work to better understand workers’ needs.

According to a TechTarget report,  IT teams struggle to promptly address the concerns of employees or introduce new features or functions as per their needs. Thus, shadow IT can help deliver better tech to workers faster and more efficiently.

Workers who choose their own applications to work with are typically more in tune with the tech’s limits and can manage expectations better. Thus, they are more likely to be satisfied with their work while using the systems they know and prefer. 

Employees using unsanctioned tools without proper oversight can compromise the cyber security of a company. When workers use tech that has no reviews,  security assessments, or approval from IT departments, the organization is exposed to various risks. The IT department conducts thorough research to ensure the organization's technology is safe and compliant.

Representative Image | Unsplash | Photo by FlyD
Representative Image | Unsplash | Photo by FlyD

However, third-party systems could be vulnerable to cyberattacks, as unauthorized tech rarely goes through the same level of scrutiny. Thus, Shadow IT could expose the organization to critical weaknesses and put a company’s proprietary and protected data at risk.

IT teams often fail to provide support for any unauthorized tech as it doesn't get the same documentation and management attention. This comes up when shadow IT needs updates or becomes glitchy, Josh Lazar founder and CEO of technology services firm TechThinkTank, said in the TechTarget report.

Representative Image | Unsplash | Photo by Flipsnack
Representative Image | Unsplash | Photo by Flipsnack

According to a Forbes report, the answer to shadow IT isn’t in eliminating it. It lies in finding solutions to provide employees the resources they need. In the report, Uzi Dvir, chief information officer at WalkMe, recommends that IT departments must gain visibility into the true user behaviors to provide the safest ways to use those tools. “ He suggests that IT departments must step up, as the onus of providing the right tech tools is on them.

MORE ON MARKET REALIST
She had asked for $250,000 when she came and she walked away with close to $400,000.
2 hours ago
The showrunners must have had a storm on their hands when they were called out.
3 hours ago
Steve Harvey burst out laughing when he heard that answer, as was the case in much of the round.
4 hours ago
The guest wanted more than $3,000 for the item but the expert crushed his hopes.
1 day ago
The game even had a twist which saw Drew Carey doing something special for the contestant.
1 day ago
One had to pay attention to catch the error, and the show has a lot of fans like that.
1 day ago
The contestant's nonchalant behavior after answering left everyone on the show stunned.
1 day ago
The host was left red-faced and he even apologized to the contestant later on for his actions.
2 days ago
The guest was not expecting the low valuation of his item given by the expert.
2 days ago
The host perhaps did not expect to hear that answer and was left impressed.
2 days ago
The contestant was over the moon with her victory, which she made look quite easy.
3 days ago
The guest could do nothing more than accept his bad luck, and that is exactly what he did.
3 days ago
The host had his head down and could not even look at the board as the answer was revealed.
3 days ago
Almost all of the answers given were either shocking or hilarious, or both.
4 days ago
The pawn shop owner had doubts about the beverage's condition and was proven right.
4 days ago
The pawn shop owner has always been a big fan of WWII memorabilia and this was no different.
5 days ago
The contestant turned to the audience for help and it paid massive dividends.
5 days ago
None of the three contestants wagered anything in the final round, which was a first.
5 days ago
Cuban was excited to try them on and did a good job despite not having too much experience.
5 days ago
The contestant, Christina Derevjanik became the biggest winner ever in the show's history.
6 days ago