Copilots Are the New Shadow IT: The Hidden Risks That Come With Them

\ Enterprises are rapidly adopting copilots across various functions. HR has one. Finance has another. Marketing is testing its own.

\ The problem is that none of these tools connect, and all too often, IT doesn’t find out about them until after they have been embedded into workflows.

\ Does this problem sound familiar? It should. A decade ago, shadow IT spread through tools like Dropbox and Slack, which entered organizations without prior approval.

\ The difference today is that copilots do more than manage files. They sit inside sensitive workflows, influence compliance-heavy processes, and shape decisions. This raises the risks and complicates the problems.

The Rise of Shadow Copilots

Employees often have the best intentions when integrating a new tool into their team workflow. But unfortunately, they also create blind spots.

\ A Komprise survey revealed that 90 percent of IT leaders are concerned about shadow AI, and nearly 80 percent have already experienced negative outcomes, ranging from data leaks to reputational damage.

\ The risks are clear. A finance team’s copilot may give a different answer than HR’s. A member of the marketing team might test plugins that were never reviewed for viruses and malware. Sensitive data may be fed into copilots that lack the security safeguards enterprises expect.

\ Each of these scenarios has the potential to erode trust and expose the organization.

The Hidden Risks of Copilot Sprawl

When copilots spread without control, four problems consistently appear:

1. Data leaks occur when sensitive information is entered into copilots that fall short of enterprise standards.
2. Compliance failures follow when different copilots apply different rules, leading to inconsistencies in regulated industries.
3. Unvetted plugins and extensions introduce dangerous vulnerabilities.
4. Departments receive conflicting answers to the same questions, which undermines confidence in outputs.

\ These outcomes happen when well-intentioned teams adopt tools that are not designed to scale securely across an enterprise.

Guardrails That Keep Systems Intact

These problems can be avoided, but the solution starts with visibility. Leaders need a clear view of where copilots are in use. Building this inventory provides a baseline for governance.

\ Once visibility is established, the next step is to set standards. Every copilot should meet requirements for data security, privacy, and compliance.

\ I think it is important to stress that guardrails do not mean shutting down innovation. Many of these tools offer significant benefits for productivity. They just need to be monitored.

\ Some companies have instituted harsh bans on any outside tools. I really don’t recommend this approach. Bans often prompt employees to seek unsanctioned workarounds that are more difficult to monitor.

\ The better approach is to let experimentation continue while ensuring copilots remain within defined boundaries.

Ongoing Oversight for Living Systems

Approval cannot be treated as a one-time exercise. Copilots change as new plugins, integrations, and data connections are introduced.

\ They need to be managed as living systems. Ongoing monitoring and regular reviews are critical. Without oversight, copilots drift back into shadow IT, and they do so at a faster pace than traditional applications.

From Shadow to System

Copilots and tools like them are not going anywhere soon. And for good reason. I myself leverage AI tools to enhance my work and productivity.

\ These tools will continue to multiply across functions, whether IT is ready or not.

\ The challenge is to move from fragmented adoption to structured systems. With visibility, standards, and oversight, copilots can be turned into infrastructure that strengthens the enterprise instead of weakening it.

\ This prevents a repeat of shadow IT and avoids another cycle of technical debt.

\ More importantly, it ensures that copilots become a reliable source of productivity rather than a hidden risk.

. . .

Nick Talwar is a CTO, ex-Microsoft, and a hands-on AI engineer who supports executives in navigating AI adoption. He shares insights on AI-first strategies to drive bottom-line impact.

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