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Shadow AI Is Already in Your Organisation. Here's How Leading IT Teams Are Responding.

 

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AI adoption rarely arrives as a neat, fully governed program. It usually starts much smaller than that.

A manager uses an AI tool to summarise meeting notes. A developer experiments with a coding assistant. A business unit signs up for a new AI platform to speed up repetitive work. An employee uses a public AI tool to clean up a document before sending it to a customer.

None of these decisions feels particularly significant at the time.

But taken together, they create a challenge that many IT leaders are now confronting. AI adoption is spreading faster than most organisations can see, govern or support.

That is exactly what we continue to hear in customer conversations. IT leaders are dealing with unsanctioned AI use, personal devices being used for work-related AI tasks, multiple AI tools appearing across different parts of the business, uncertainty around data exposure, increasing interest in governance controls, and the challenge of educating users without becoming the department that slows innovation.

The broader market is telling a similar story. According to a iTnews' article, AI investment and usage continue to increase across Australian organisations, while governance, accountability, data quality and organisational readiness are struggling to keep pace.

For most organisations, the question is no longer:

"Should we allow AI?"

The question has become:

"How do we give people a safe and governed way to use AI before unmanaged tools become the default operating model?"

The best AI implementations start with a workflow, not a licence

One of the most useful examples comes from the Fair Work Commission's approach to agentic AI.

What makes that story interesting is not the technology itself. It is the approach taken before the technology was deployed.

The Commission did not start by asking where AI could be used. It started by looking for operational processes that were already consuming time and effort. The focus was on practical activities such as conferencing checks, onboarding and offboarding processes, and document preparation. These were processes that already existed, had clear owners and could be measured.

Before AI agents were introduced into those workflows, the organisation focused on governance, training and human oversight. Staff were trained before deployment. Human validation remained part of the process. Success criteria were established before rollout rather than after it.

The result was not simply faster work. It was greater confidence in how AI was being used.

The Commission understood where AI was operating, what outcomes it was supporting and what controls existed around those workflows.

That lesson is particularly relevant because many organisations approach AI from the opposite direction. They purchase access to a platform and then start looking for use cases.

The organisations seeing the strongest outcomes tend to reverse that thinking. They start by understanding a workflow, identifying a business problem and determining whether AI can improve the process. Only then do they decide which technology belongs in that environment.

Most shadow AI isn't hidden. Nobody is looking for it.

When people hear the term shadow AI, they often imagine employees deliberately bypassing security controls. The reality is usually much less dramatic.

The problem emerges when an organisation has AI operating across multiple workflows, departments and devices, yet nobody has a complete picture of where it exists, how it is being used or what information is being shared.

This is why visibility has become such an important discussion among IT leaders.

Not because organisations want to stop AI adoption. Because they want to understand it.

Many organisations are still trying to answer a handful of basic questions:

    • Which AI tools are currently being used?

    • What business problems are they solving?

    • What information is being shared with those tools?

    • Are employees using corporate accounts or personal accounts?

    • Who owns the associated risk?

Until those questions can be answered, governance becomes largely theoretical.

What changes after AI goes live

Launching an AI pilot is rarely the difficult part.

The difficult part is managing what happens next.

The tool that began with a single team is now being used across the department. Different business units start solving similar problems using different platforms. New requests arrive every week. Questions around approvals, data access, ownership and oversight become more frequent.

At that point, governance can no longer sit inside a policy document.

It needs to become part of operational processes.

Leading organisations are increasingly looking at AI the same way they would any other business capability. They are defining ownership, establishing approval processes, clarifying responsibilities and creating visibility across usage patterns.

This is where AI adoption starts to look less like a technology project and more like an operating model.

The organisations handling this transition well are creating enough structure to support growth without creating so much bureaucracy that employees immediately start looking for alternatives.

AI projects are increasingly becoming data projects

Many organisations begin their AI journey talking about productivity.

Before long, they find themselves talking about information management.

A good example comes from Brickworks' AI-powered data cleansing initiative, where the focus was not on flashy AI use cases but on improving the quality and usability of underlying data.

That shift is becoming common. Organisations are discovering that AI tends to expose challenges that already existed.

If important information is scattered across multiple systems, AI makes the problem more visible.

If data ownership is unclear, AI exposes that uncertainty.

If sensitive information is poorly classified, AI makes governance significantly more difficult.

This is why many organisations are investing time in understanding where information lives, who owns it and how it should be protected before attempting to scale AI adoption.

Strong data foundations create flexibility. Poor data foundations create risk.

Building controls for the next phase of AI

As AI becomes more embedded in business processes, organisations are beginning to pay closer attention to emerging risks.

Research discussed in another IT news article highlighted how prompt injection techniques can influence AI-assisted workflows through seemingly ordinary documents.

It also highlighted why organisations need to think carefully about permissions, oversight and autonomy as AI agents become increasingly capable.

These examples are reminders that governance must evolve alongside adoption.

The organisations making the most progress are recognising that AI risk is increasingly a workflow issue rather than simply a technology issue. Understanding how information moves through AI-enabled processes is becoming just as important as understanding the technology itself.

The organisations making progress aren't treating AI as a project

The organisations seeing the strongest outcomes are not necessarily deploying the most AI.

They're creating the conditions that allow AI to scale safely.

They're taking time to understand how AI is already being used. They're improving visibility before implementing controls. They're educating users about responsible usage rather than relying solely on restrictions. They're focusing on data, governance and operational ownership before expanding adoption.

Most importantly, they recognise that AI adoption is not purely a technology challenge.

It's an organisational capability.

The challenge facing many IT leaders today is ensuring the organisation can continue using AI safely, effectively and responsibly as adoption accelerates.

The organisations getting ahead have stopped treating AI as a project with an end date.

They are starting to treat it as an operational capability that requires visibility, governance and continuous improvement.

That is where the next phase of AI maturity will be won.

What comes next: Visibility first, value second

While every organisation is at a different stage of its AI journey, some common patterns are starting to emerge. We asked Matt Dargie, Truis' Director of Business Optimisation, for his perspective on where organisations should focus next and what advice he would give organisations trying to balance innovation, governance and visibility.

"I see Truis playing a significant role in helping customers gain visibility and governance over AI. I believe the best people to identify AI use cases are the people doing the work, as that is where innovation is happening within organisations. The key is giving people enough freedom to experiment while operating within clearly defined boundaries," Matt said. 

One of the biggest risks we see isn't necessarily the wrong AI tool being used. It's organisations having no visibility of what's already happening.

"If an organisation does not have full visibility of AI usage, it should focus on obtaining that visibility as quickly as possible. We already have more than 30 AI applications being used across approximately 70% of our workforce. Having that visibility has enabled meaningful conversations with our people about why they are using specific AI tools and whether the same outcomes could be achieved using approved corporate products. We are also rationalising the number of AI applications in use and restricting unapproved applications through whitelisting," Matt explained. 

"I believe organisations that encourage experimentation with AI while taking the time to measure the business impact of use cases will lead the way," Matt said.

"One of our strongest examples has come from a highly skilled technical team member who is using AI to communicate more effectively with internal colleagues. English is their second language, and AI has enabled them to explain complex technical issues to non-technical staff clearly and succinctly. This has improved effectiveness across a wide range of stakeholders and helped strengthen their professional reputation within the business," Matt said. 

That's the kind of outcome organisations should be looking for. Not AI for its own sake, but AI helping people do their jobs better.



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