Poorly designed internal AI applications are failing to meet the needs of employees, leading to the rising dominance of shadow AI. Despite 92% of companies planning to increase their AI investments, only 21% of office workers believe that AI apps significantly enhance their productivity. This gap between expectations and reality highlights the urgent need for businesses to enhance the employee experience provided by their internally developed apps.
Vineet Arora, CTO at WinWire, emphasized the importance of usability over algorithms in enterprise AI adoption. He noted that if AI tools are not as intuitive as those employees are accustomed to using, adoption rates suffer, and shadow AI fills the void.
The majority of employees creating shadow AI apps are not doing so with malicious intent but rather to cope with increasing workloads, time constraints, and tight deadlines. Itamar Golan, CEO of Prompt Security, recently acquired by SentinelOne, highlighted the risks associated with shadow AI, as data fed into these apps could potentially become part of their models.
The disconnect between employee expectations and the actual delivery of AI applications is fueling the growth of shadow AI. Legacy approaches to user interface (UI) design are contributing to this phenomenon, as many enterprise AI solutions do not match the usability of consumer-grade AI apps.
Shadow AI poses a significant security risk, with breaches involving unauthorized AI tools costing organizations an average of $4.63 million. The lack of visibility into internal AI app performance makes it challenging for IT teams to understand why productivity gains are not being realized or why employees turn to shadow AI solutions.
To address the proliferation of shadow AI and improve the employee experience, organizations must adopt a seven-point strategy:
1. Audit everything to identify and map shadow AI.
2. Centralize AI governance under one office to ensure comprehensive oversight.
3. Monitor user pain points to address digital friction.
4. Maintain a catalog of approved AI tools based on user performance data.
5. Provide targeted AI awareness training to educate employees on shadow AI risks.
6. Incorporate user experience metrics into risk assessments at the board level.
7. Deploy enterprise AI solutions that are user-friendly and meet employee needs.
In conclusion, addressing the user experience is key to mitigating the risks associated with shadow AI. By focusing on intuitive AI application design, organizations can enhance productivity, reduce the motivation for employees to turn to shadow AI, and improve overall security.

