Execs make AI rules and break them with shadow IT

"More than two-thirds of corporate executives say they've violated their own AI usage policies in the past three months, and over half of the leaders also ranked security and compliance as the greatest AI implementation challenge. That data comes from a survey commissioned by electronic document biz Nitro, titled "Enterprise AI: The Reality Behind the Hype." The findings, which might be taken as a startling lack of self-awareness among the C-suite set, show corporate leaders betting that the presumed competitive advantages of AI usage outweigh the security risks,"

"Employees are not far behind their leaders in their indifference to corporate policies, with half admitting to unapproved use of AI tools. The survey sheds light on the extent of "shadow IT" - the use of unapproved software tools within an organization, a practice Microsoft recently said it would try to manage rather than prevent. Whelan took a similar position to Microsoft's in a statement provided to The Register."

"The Nitro survey also suggests corporate investment in AI has outpaced planning and governance. Ninety-seven percent of companies have invested over $1 million in AI to date, the report says. Sixty-one percent have invested more than $10 million in AI. And 70 percent plan to invest more than $10 million in the next 12 months."

"Yet employees don't feel much pressure to use AI tools: 57 percent of respondents said they receive low or no pressure to board the AI bus, while 28 percent feel zero pressure. At the same time, there's a C-suite-worker gap in how training is perceived: 89 percent of executives rated company AI training as excellent or good, compared to 63 percent of employees."

More than two-thirds of corporate executives report violating their own AI usage policies in the past three months. Over half of leaders identify security and compliance as the top AI implementation challenge. Half of employees admit to unapproved AI tool use, revealing widespread shadow IT. Companies have poured significant funds into AI, with 97 percent investing over $1 million and many planning further multi-million dollar investments. Employees report low pressure to adopt AI, and executives rate training far more favorably than employees. IT guidance should focus on guardrails and secure alternatives rather than outright bans.

Read at Theregister