John O’Connell Published in Advisor Perspectives by VettaFi: CTOs Must Govern Shadow AI or Face Security Risk
John O’Connell authored this article in Advisor Perspectives by VettaFi where he discusses the dangers of unregulated use of shadow AI that could already be affecting your firm. While your compliance team debates whether to allow the latest Large Language Model (LLM) within your compliance framework, most of your advisors are already using it on their personal phones. They may be entering client data, portfolio ideas, and internal research into AI applications that your firm has never reviewed. Even some paid AI subscriptions carry PII and cybersecurity risks. The real question is not whether shadow AI exists inside your walls. It is whether you will take control of it before regulators and cybercriminals do.
