Shadow AI: The Hidden Cyber Risk in Manufacturing Plants

At TotalCare IT, we’re seeing manufacturers across Idaho and beyond racing to adopt AI. From predictive maintenance to quality control to supply chain optimization, AI is transforming how plants operate. But along with all the benefits, there’s a hidden danger many manufacturers don’t see coming: shadow AI.

Shadow AI refers to AI tools deployed by employees without official approval or oversight. Maybe it’s an engineer who downloads an unapproved model to optimize a machine or a manager who experiments with an AI scheduling app. These tools might seem harmless—or even helpful—but they can open serious backdoors for hackers.

According to IBM’s Cost of a Data Breach Report 2025, shadow AI is already driving breach costs up by nearly $670,000 per incident. For manufacturers, that’s an expensive price tag for an invisible problem.

Why Shadow AI Is So Dangerous in Manufacturing

Manufacturing plants are uniquely vulnerable when it comes to shadow AI:

• Complex systems: AI tools often connect to operational technology (OT) systems that control physical equipment. An unmonitored tool could give attackers access to your production lines.

• Highly valuable data: Shadow AI tools may inadvertently expose CAD designs, formulas, or supplier contracts—prime targets for cybercriminals.

• No governance: Without oversight, these tools lack proper access controls, logging, or monitoring. If something goes wrong, it’s nearly impossible to track where the breach started.

In short: shadow AI creates invisible risks with very real consequences.

Real-World Scenarios: One Small Tool, Big Impact

Picture this: a plant engineer downloads an AI plugin to monitor vibration data on a machine. The tool works well, but it wasn’t vetted by IT. Unbeknownst to the engineer, the app has a vulnerability that allows hackers to access not just the machine data, but the network it’s connected to. Suddenly, what started as an innocent experiment compromises sensitive production schedules, supplier contracts, and even intellectual property.

This is how shadow AI incidents spiral into multi-million-dollar problems.

The Numbers Don’t Lie

The 2025 breach report found that organizations with high levels of shadow AI exposure saw their average breach costs jump from $4.07 million to $4.74 million. On top of the financial hit, 65% of shadow AI incidents compromised customer data and 40% exposed intellectual property.

For manufacturers, that means not just downtime, but real-world losses in contracts, supplier trust, and competitive edge.

What Manufacturers Can Do About It

The good news? Shadow AI risks can be managed—but it takes a proactive strategy. At TotalCare IT, we recommend manufacturers take these steps:

• Create clear AI policies: Define what’s allowed, what isn’t, and how new tools must be vetted.

• Establish access controls: Every AI system should have proper permissions, logging, and monitoring in place.

• Educate your team: Help employees understand the risks of using unapproved AI tools.

• Audit regularly: Shadow AI often flies under the radar. Regular audits can uncover hidden tools before they create vulnerabilities.

• Leverage managed IT support: A partner like TotalCare IT can help you identify risks, lock down your systems, and ensure AI innovation doesn’t come at the cost of security.

Protecting Innovation Without Sacrificing Security

AI can give manufacturers a real edge—but only if it’s implemented safely. Shadow AI might seem like a shortcut to efficiency, but in reality, it’s a shortcut to higher breach costs, downtime, and lost trust.

At TotalCare IT, we help manufacturers build AI governance and security strategies that keep operations efficient and secure. From access controls to ongoing monitoring, we provide the tools and expertise to keep shadow AI from becoming a hidden threat in your plant.

Ready to Take Control of AI in Your Manufacturing Operations?

Don’t let unmonitored AI tools put your business at risk. If you’re a manufacturer in Boise, Idaho Falls, or across the region, TotalCare IT can help you put policies, protections, and monitoring in place so AI strengthens your business instead of exposing it.

Contact us today to  schedule a consultation and learn how we can safeguard your operations against the hidden risks of shadow AI.