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Shadow AI In The Cloud: Boosting Productivity Or Breeding Risk?

Shadow AI is becoming the new Shadow IT—and Mr. Arnav Sharma’s blog ‘Shadow AI in the Cloud’ explains why leaders can’t afford to ignore it. As a Security Architect and seasoned Microsoft Certified Trainer, Arnav brings both technical depth and industry perspective.

Here’s a summary of his insights:

  • What’s happening? Arnav explains how employees are increasingly using tools like ChatGPT, Notion AI, or GitHub Copilot without organizational approval—a practice now recognized as Shadow AI. Like Shadow IT once did, it promises quick productivity gains, but the stakes are far higher.
  • How big is the issue? Citing recent studies, he highlights, 98% of employees are using unsanctioned applications at work”. Therefore, what looks like efficiency can often hide compliance, security, and data risk.
  • Why is it dangerous? Later in the blog, he also sheds light onto another key concern – cloud access accelerating the problem—making it easy for sensitive data to move through APIs and servers that IT or compliance teams never see.
  • What are the consequences? The consequences are already visible, from Dropbox’s $1M fine to Microsoft’s $500k legal costs and Netflix’s subscriber losses after privacy backlash.
  • What’s the solution? His takeaway is clear: banning AI isn’t the answer. Instead, organizations need smarter guardrails—policies, monitoring, and secure internal options—to balance innovation with safety.

Read the full piece here: Shadow AI in the Cloud by Arnav Sharma

About CT Cyber CharchaTM

Channel Technologies recently launched CT Cyber CharchaTM — a brand-agnostic platform dedicated to thought leadership in emerging technologies like cybersecurity, AI, digital transformation, blockchain, and more. We launched this brand earlier this year (Feb 2025) with a hybrid conference in IIT Delhi. The event was a huge success, and we had some great industry leaders as speakers and participants from the cybersecurity domain.

Under this, we have initiatives like conferences, webinars, Cyber CharchaTM Shots (a bite-sized video series featuring industry experts), and the newest, guest blogging.

Till now, we have brought together industry leaders from Microsoft, EY, PayTM, Grant Thornton Bharat LLP, Accenture, Marks and Spencer, and many more.

For more details visit: CT Cyber CharchaTM

Author

  • Arnav Sharma - Microsoft MVP (Security) & MCT - Cyber Charcha Guest Post Author

    Arnav Sharma is a cloud-certified architect with expertise across Azure, AWS, and GCP. With over a decade of blogging experience, he shares insights on cloud architectures, security, DevOps, and AI. As a Microsoft Certified Trainer and Microsoft MVP in Cloud Security & Microsoft Azure, Arnav combines hands-on architectural experience with community leadership. Based in Sydney and a father of two after hours, he’s committed to helping tech professionals and enthusiasts understand complex topics in a clear, practical way.

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