Governance and Generative Artificial Intelligence: Challenges and Risks of Shadow AI in Business Environment

The leading Gen AI platform, currently has 500 million monthly users in 209 countries, surpassing the 100 million active users mark in 64 days after the launch of ChatGPT-3.5, making it the fastest-growing software in history. AI is particularly effective in reducing the time and costs associated with developing new technology combinations, allowing companies to quickly test a range of alternatives and adjust accordingly. Given this scenario, it is essential to investigate not only the opportunities offered by Gen AI, but also the governance practices that can help mitigate the associated risks. Thus, the objective of this study is to propose a framework to analyze the relationship between governance and the use of Gen AI tools in companies, focusing on how governance can mitigate risks associated with shadow AI (unsanctioned AI use) and enhance their benefits.