AI is transforming the workplace—but without the right safeguards, it could also introduce new risks for customer data.
AI Has Arrived in Financial Services
Whether organisations planned for it or not, Artificial Intelligence has already become part of the modern workplace.
Employees are using AI to summarise documents, draft emails, analyse spreadsheets, write reports and accelerate everyday tasks. In many cases, these tools genuinely improve productivity.
The challenge is that AI adoption often happens faster than organisational governance.
An employee might paste information into an AI assistant to save time, without stopping to consider where that information is processed, stored or retained. While the intention may be harmless, the implications can be significant—particularly for organisations that manage sensitive financial information.
For IT teams, the question is no longer whether staff are using AI. The question is whether your organisation has visibility and control over how AI is being used.
Financial Services Runs on Trust
Financial services organisations are entrusted with some of their customers' most sensitive information including:
- Personal identification details
- Financial information
- Loan or funding documentation
- Insurance information
- Customer correspondence
- Internal financial reports
- Commercially sensitive business information
Customers expect this information to be handled securely. Regulators expect organisations to manage it responsibly. And IT teams are increasingly expected to balance both security and productivity as AI becomes commonplace.
The challenge is that public AI tools don't always operate within the governance framework your organisation expects.
Without clear policies and technical controls, customer information could unintentionally be submitted to services that sit outside your organisation's visibility.
Shadow AI Is Becoming the New Shadow IT
Most IT professionals are already familiar with Shadow IT—employees adopting technology without formal approval.
Today, we're seeing the same pattern emerge with AI.
An employee discovers a useful AI tool online. They begin using it to help write reports or summarise customer conversations. Soon it becomes part of their daily workflow, without IT ever knowing it exists.
This "Shadow AI" creates several challenges:
- AI tools that haven't been assessed by IT
- Customer information being copied into external services
- Unclear data retention practices
- Limited visibility into AI usage across the organisation
- Difficulty enforcing governance and compliance policies
Importantly, this doesn't mean employees are doing the wrong thing. In most cases, they're simply trying to work more efficiently.
The responsibility for organisations is to provide secure, approved ways for employees to benefit from AI without introducing unnecessary risk.
Banning AI Isn't the Answer
Some organisations initially responded by attempting to block AI altogether. In reality, this approach is becoming increasingly difficult—and often counterproductive.
AI is rapidly becoming embedded into the applications employees already use every day, from productivity suites through to business software and collaboration platforms.
Rather than trying to eliminate AI, leading organisations are focusing on enabling its safe use. That means:
- Providing approved enterprise AI platforms
- Developing clear AI usage policies
- Educating employees about responsible AI use
- Understanding where data is being shared
- Monitoring AI activity across the organisation
When employees have access to trusted AI tools, they're far less likely to seek out unsanctioned alternatives.
Five Questions Every Financial Services IT Team Should Ask
As AI adoption accelerates, it's worth asking a few practical questions:
1. Do we know which AI tools our staff are using?
Visibility is the first step towards governance.
2. Can customer information be entered into public AI services?
If so, under what circumstances?
3. Have we provided an approved AI alternative?
Employees naturally gravitate towards the easiest solution available.
4. Do staff understand what information should never be shared with AI?
Technology alone isn't enough. Education remains critical.
5. Are we balancing innovation with governance?
The goal isn't to slow AI adoption—it's to enable it responsibly.
AI Governance Is Becoming a Competitive Advantage
The organisations gaining the greatest value from AI aren't necessarily those using the most AI tools. They're the organisations that have established clear governance while still empowering employees to innovate.
Strong AI governance helps organisations:
- Protect customer information
- Reduce security risks
- Improve visibility
- Support regulatory obligations
- Build confidence in AI adoption across the business
Ultimately, good governance enables innovation rather than restricting it.
How Subnet Can Help
Helping organisations adopt AI securely isn't simply about deploying new technology.
It's about ensuring employees have access to the right tools, supported by the right governance, security controls and policies.
Subnet works with organisations across South Australia to help them:
- Assess AI readiness
- Improve visibility into AI usage
- Strengthen cybersecurity and data protection
- Develop practical AI governance strategies
- Deploy secure AI solutions that support productivity without compromising customer trust
If your organisation is exploring AI—or wants to better understand how it's already being used—we'd be happy to start the conversation.
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