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

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. 

What is Shadow IT?

“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.

Increased Efficiency

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.

Helps with Technological Improvement 

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.

Fast Tech Delivery 

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.

Increased User Satisfaction 

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. 

The Cons of Shadow IT

Increased Cybersecurity Risks

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.

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.

Maintenance and Governance challenges

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.

Is there a Solution to  ‘Shadow IT’?

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.