Shadow AI is opening a door for the channel. Are we ready to walk through it?

Walk into almost any business today, and you will find employees using AI tools that IT teams haven’t approved or paid for. The use of unsanctioned applications, known as shadow AI, is coming from the top.

I’ve heard bosses and senior leaders boast about maxing out on their token limits for personal AI tools at work, some saying they would risk disciplinary action to continue. My opinion, based on research we’ve done, is that sensitive company information is being fed into unsecured platforms with knowing and active encouragement from leadership teams focused on speed and output.

With Gartner estimating that 79% of cybersecurity leaders have evidence of unsanctioned AI use, we know reckless behavior isn’t limited to the boardroom. IBM's research shows a persistent gap between leaders' AI ambition and governance readiness in organizations of all sizes. Employees are using whichever AI most increases their productivity, consequences be damned.

Business AI tools aren’t meeting employee needs. Whether that’s because of cost, AI readiness, or lack of understanding, Managed Service Providers (MSPs) and IT providers have a unique window to support businesses needing to adopt correctly. The channel is now reaching wider business managers who direct company culture, not just IT teams. With the way things are going, the channel has an opportunity to become strategic if we can meet the ask.

The pressure point

The window for the channel to move from IT vendors to strategic business partners is now. From a product perspective, upcoming licensing changes and cost pressures are likely to force decisions that many organizations have so far delayed. When budgets are tight, downgrading access to AI tools is a logical step. However, this often pushes employees back toward unsanctioned options.

Employees have already demonstrated that they will seek out tools that help them work more efficiently. Our research found that a significant proportion of employees said they would turn to personal AI tools if their employer restricted access on cost grounds. That’s a small profit gain one year and a data leak, boardroom scandal, and reputation loss the next.

For MSPs and Microsoft partners, this represents both a warning and an opportunity. Businesses must respond to employee needs and top-down rule-breaking by optimizing licensing, deploying AI properly, and putting the right software in place.

For the channel, a renewed focus on adopting AI that fits the budget and the needs of the workforce will open new business opportunities.

The government is paying attention

It is also worth noting that this is not just a commercial conversation or pandering to employee desires for the latest tech. At London Tech Week, the UK government focused on improving AI adoption among small and midsize businesses, with a caveat that tech transformation needs to happen safely and effectively.

To me, these policies and investments are a clear sign that AI enablement for SMBs is a national priority, and the channel is one of the primary routes through which it will be delivered. There has been a buzz in the channel for some time around how MSPs need to move from transactional resellers to trusted and strategic technology advisors.

Now is the time to meet the needs of providers seeking guidance on adopting quickly and safely. With renewed government focus on scaling AI for all businesses, the channel ecosystem is welcoming more than just IT buyers, presenting a long-term opportunity for the MSP.

What good readiness actually looks like

When our customers ask us about the latest AI software, financial, structural, and cultural concerns immediately crop up. They are trying to understand whether they are ready to adopt AI in a way that delivers value without introducing unnecessary risk. In most cases, the answer is more complex than a simple technology decision. Most know that the answer is more complicated than a licence purchase.

The practical work includes an honest AI readiness assessment, a clear policy framework that governs what tools can be used and how, user training that goes beyond a PowerPoint, licensing optimization, and a thorough security and compliance review that accounts for the data risks that shadow AI has already introduced.

For businesses already suffering from shadow AI use, especially where it’s driven from the top, it might be an uncomfortable conversation. Without it, businesses will keep losing money on poorly implemented and poorly performing software that their employees aren’t using, whilst the leadership team sets an example of risking sensitive data just to hit KPIs.

This conversation isn’t beyond the capability of a well-positioned MSP. But it requires a trusted relationship and the confidence to have a broader conversation with the customer than MSPs are used to having.

The window is open

Businesses have been allowing their AI tools to underperform for a multitude of reasons, but pricing changes, risk, and legislation are all about to force decisions.

If they aren’t already, businesses will soon be coming to the channel needing guidance. It’s been talked about for some time, but now really is the moment for partners and channel actors to make themselves known as AI readiness advisors. Now, before the next wave of shadow AI incidents, before a competitor gets there first.

The key question is not whether customers need support with AI; that’s obvious. For me, the channel needs to be assessing whether they can take advantage of this window and provide that support and more.