Have you heard about the growing trend of ‘Shadow AI’ in legal departments? It’s a phenomenon where employees, even senior lawyers, are using unauthorized AI tools to analyze sensitive data, often without their company’s knowledge or approval. This can lead to serious consequences, including the loss of attorney-client privilege, leakage of M&A strategies, and fines in the millions.
The problem is more widespread than you might think. Surveys show that over 80% of legal teams are using AI tools not provided by their company, and nearly half have no AI policy in place. This lack of oversight can have disastrous results, as confidential documents and trade secrets are being uploaded to platforms with little to no security controls.
It’s not just legal departments that are at risk. This trend is likely happening in finance, healthcare, manufacturing, and any other industry where sensitive data exists. So, what’s the most reckless use of AI you’ve seen in your industry?
It’s time for companies to take action and establish clear AI policies to prevent these kinds of security breaches. The consequences of inaction could be catastrophic.