AI Security Audits: How To Find Shadow AI In Your Business

As AI becomes more embedded in everyday business processes, organisations need the full picture of how these technologies are being used across their environment

While many AI tools are adopted into an organisation through formal processes, others may be used without central oversight, which creates headaches around visibility, governance and risk management. Identifying and understanding shadow AI is becoming increasingly important when it comes to maintaining a secure cyber security posture. In this blog, we’ve explained:

  • What Shadow AI is

  • What an AI Audit should look for

  • Understanding the risks of AI usage and Governance considerations

  • How to address Shadow AI

What is Shadow AI?

It’s the use of artificial intelligence tools within an organisation without formal visibility or oversight – for instance, employees using public AI platforms such as ChatGPT without central governance or authorisation would fall into this category. If organisations don’t know what AI tools are being used, where they are being used, or what information is being shared with them, effective internal management becomes next-to impossible, and creates potential data risks as a result.

As AI becomes more embedded in everyday business processes, understanding and managing shadow AI is becoming an important part of maintaining cyber resilience within an organisation. To do that, carrying out an AI security audit to ensure AI is being used responsibly and compliantly becomes an essential task.

What should an AI Audit look for?

Its priority is identifying how AI technology is being used across an organisation, and considering whether the way it’s being used aligns with business and privacy requirements.

It’s worth noting that any audit should give guidance on how to use AI with care, and not restrict it unnecessarily. During our discussions with clients on these audits, we’re very clear that their purpose is to provide visibility, manage risk and ensure that AI is being implemented and used securely within an organisation. Of course, sometimes, that means reining in unauthorised use if it’s already causing compliance issues, or could easily lead to an unintended data breach or attack.

Key areas for review should include:

  • Unauthorised AI applications and generative AI tools being used by employees

  • AI-enabled browser extensions and plugins that may have access to corporate information

  • AI capabilities embedded within existing SaaS and business applications

  • AI services introduced by vendors, suppliers, or other third parties

  • Processes for approving, monitoring, and reviewing AI use.

Understanding the potential risks involved with AI usage

Organisations are discovering that the adoption of AI is happening faster than their security procedures can keep up with, and with a stream of new tools making it to market, that comes as no surprise. However, without effective oversight, that adoption could introduce a range of unintended risks to an organisation, such as:

  • Data leakage through the submission of sensitive information to external AI platforms

  • Confidentiality concerns where different types of data are being processed without appropriate controls

  • Intellectual property exposure resulting from confidential or proprietary information being shared with AI tools

  • Uncontrolled data processing that could create regulatory or contractual concerns.

  • Third-party risk where supplier-managed AI capabilities have not been fully assessed

Governance and Regulatory Considerations

As AI technologies and tools continue to grow, the responsibilities of organisations increase with them. They’re expected to demonstrate that its use is governed appropriately and doesn’t create unnecessary risk.

That means being aware of and compliant with appropriate standards and frameworks, such as ISO/IEC 42001. This international standard for Artificial Intelligence Management Systems (AIMS) provides a framework for establishing and implementing AI governance processes. It focuses on areas such as accountability, risk management, and continual improvement.

In the UK, the Information Commissioner's Office (ICO) has published guidance on AI and data protection, as well as resources such as the AI and Data Protection Risk Toolkit. The guidance emphasises accountability, transparency, risk assessment, and the responsible processing of personal data when AI systems are in use.

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Overall, it’s clear that AI offers opportunities to enhance innovation and operational efficiency. But organisations can only fully realise these benefits when they have clear visibility and oversight of how AI technologies are being used across the organisation.

By conducting AI security audits, governance reviews, and structured risk assessments, organisations can identify unauthorised or unmanaged AI usage, better understand associated risks, and implement appropriate controls.

To strengthen AI governance frameworks, organisations should consider implementing AI security audits and workshops, acceptable use policy reviews, and ISO/IEC 42001 readiness assessments as part of their wider security and risk management strategy, all of which PureCyber’s Governance, Risk and Compliance team can help with.

Get in touch with our team and let’s ensure your AI usage helps your organisation, and doesn’t hinder it. 

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