Gamers finally got their hands on Nintendo's new Switch 2 on Thursday, the console that could score record early sales for the Japanese "Super Mario" creator.

After stellar FY25 results; This consumer electronics company’s promoters sold 1,00,00,000 shares; Reinvest proceeds to boost growth and liquidity, Retain 45.8% stake  DSIJ

One retailer says it's the "biggest gaming pre-order ever" - but there questions over whether high prices will dent sales.

Posted on : June 3, 2025 By Tech World Times General  Rate this post Owen Mac, the talented country and gospel singer from Northern Ireland, has made significant strides in the music industry since his debut. Born in 2003 in Coleraine, Northern Ireland, Owen’s passion for music was evident from a young age. Influenced by artists like Jimmy Buckley, Derek Ryan, Gene Watson, and Rascal Flatts, as well as his father, Owen’s musical journey has been both inspiring and successful. Early Life and Musical Beginnings Owen Mac’s love for country music was nurtured in his hometown, where he began singing at local events and church gatherings. His soulful voice and heartfelt performances quickly garnered attention, leading to opportunities to perform on larger stages and collaborate with established artists. Discography and Musical Achievements Over the years, Owen has released several albums that have resonated with fans worldwide. Some of his notable works include: “This I Promise You” “My Journey” “Heart and Soul” “Especially For You” “How Beautiful Heaven Must Be” These albums showcase Owen’s versatility and deep connection to his musical roots. His rendition of classics and original compositions have solidified his place in the country and gospel music scenes. Online Presence and YouTube Earnings Owen’s online presence, particularly on YouTube, has contributed significantly to his popularity and income. As of June 2025, his YouTube channel boasts over 80,700 subscribers and has accumulated nearly 40 million views. This platform not only allows fans to access his music easily but also serves as a revenue stream through advertising and sponsorships. starstat.yt Merchandise and Live Performances In addition to album sales and online streaming, Owen offers merchandise through his official website, including CDs and DVDs of his performances. Live performances remain a significant part of his career, with concerts and appearances across Ireland and beyond. These events not only provide income but also strengthen his connection with fans. Owen Mac Net Worth in 2025 Estimating Owen Mac’s net worth involves considering various income sources: starstat.yt YouTube Earnings: Approximately $28,000 annually from ad revenue. Album and Merchandise Sales: With multiple albums and merchandise offerings, this could contribute significantly to his income. Live Performances: Concerts and events add to his earnings, though exact figures vary. Considering these factors, Owen Mac’s net worth in 2025 is estimated to be in the range of $85,000 to $100,000. FAQs: Q: What is Owen Mac’s primary genre of music? A: Owen specializes in country and gospel music, often blending traditional and contemporary styles.Q: Where can I purchase Owen Mac’s music and merchandise? A: His official website, owenmacmusic.co.uk, offers a range of albums and merchandise.Q: Does Owen Mac perform live concerts? A: Yes, Owen regularly performs at various venues and events. Details about upcoming performances are typically available on his official website and social media channels.Q: How did Owen Mac gain popularity? A: Owen’s unique voice and heartfelt performances, combined with his online presence, particularly on YouTube, have played significant roles in his rise to fame.Tech World TimesTech World Times (TWT), a global collective focusing on the latest tech news and trends in blockchain, Fintech, Development & Testing, AI and Startups. If you are looking for the guest post then contact at techworldtimes@gmail.com

Lisa Jones has been a Nintendo fan since the company’s first major console, the NES, launched in the 1980s. “I’ve actually had every system, including the Virtual Boy,” she says. So, with Nintendo about to release its newest console, the Switch 2, Jones knew she had to own it on day one. “I took the day off just to make sure I’d get one,” she told PCMag as she waited outside a Best Buy store, sitting on the concrete while occasionally stretching. Jones was among the diehard Nintendo fans who began lining up outside the store in San Francisco, hoping to snag the console on launch day. The Switch 2 becomes available to consumers at 12 a.m. EST / 9 p.m. PST. But not everyone managed to snag a preorder, prompting some to fall back on the tried-and-true method of lining up in person.“Yeah, I’m cold,” said Doonie Love, an actor and model who was first in line at the store. He spoke to us with his black hoodie pulled over his head as the San Francisco wind blew by. (Credit: PCMag/Michael Kan)Love began waiting at about 9 a.m. after failing to secure a preorder, which sold out quickly across retailers weeks ago. Although he’s a Nintendo and Pokémon fan, he actually showed up to the Best Buy on a “whim,” curious to see if people were lining up.“There’s no work today, I just needed something to do,” he said on deciding to wait in line. “I just called someone to bring a jacket, chair, and burrito," he later added. Others like Brad Reinke were ready to line up. “I took the day off. Yeah, I was totally prepared to play video games all day,” he told us while sitting in his foldable chair and eating a pasta takeout order from DoorDash. “We’re here all night so I've got to get lunch and dinner in me.” He too is a major Nintendo fan, and also bought the Switch 1 on launch day back in 2017. “I’m a big collector and I’m probably going to buy everything they have on sale.” he said. While Reinke wasn’t able to secure a preorder, he said he enjoys the experience of the “midnight releases," which attracts other devoted fans. “There’s good company, everyone’s here for the same reason, so we all have stuff to talk about,” he said.Meanwhile, another consumer named James Gualtieri was prepared to work remotely while waiting outside the Best Buy, carrying his laptop and a Wi-Fi hotspot. “I was in a (remote) meeting for half an hour, chatting with folks,” he said. Recommended by Our Editors(Credit: PCMag/Michael Kan)We visited the Best Buy at around 2 p.m. on Wednesday, where the line for customers without preorders was relatively small, at about 10 people. As a result, it looked like all the consumers had a strong chance of scoring the console on launch day. But Gualtieri told us Best Buy staff wouldn’t commit to confirming if everyone in line would come away with the Switch 2 since the retailer also has to prioritize preorders.  “At the end of the day, it’s not the end of the world if I don’t get one,” he said after already waiting for two hours. Fortunately, Gualtieri’s workplace is located next to the Best Buy store. “If I can’t get one, I’ll try to get in line tomorrow morning. I would really love to get one before the weekend,” he said. Meanwhile, others like Jones said it was important to snag a Switch 2 soon, rather than wait, citing the risk of Trump’s tariffs raising the price. “Get it while you can,” she said, noting Microsoft recently increased the price for its Xbox consoles.  Best Buy isn’t the only location in San Francisco to offer the Switch 2 for tonight’s release. Nintendo’s official store in the city opened last month and is slated to sell the console as well. But the product will only be available to lucky consumers who were able to snag a preorder, or “warp pass.” (Credit: PCMag/Michael Kan)Hours before the sales were set to begin, the store held a prelaunch “celebration” event, giving fans a chance to demo the Switch 2. The event attracted a long line of over 80 people when it began at 1 p.m. Several Nintendo fans also dressed up for the event, including a consumer named Annie, who cosplayed as the Zelda character, and said “I came here from Mexico.”"When I was a child I play the Nintendo so much with my friends," Annie added, while also showing off a Zelda tattoo. Another consumer named Greg H. also looked forward to tonight’s launch, having scored a warp pass to buy the Switch 2 from the official Nintendo store in San Francisco. “There is this nostalgic factor of waiting up until midnight to pick up the console,” he said while standing at the prelaunch event with a Nintendo N64 bag. “There’s also a communal aspect, where you meet a lot of people with the same interest.”(Credit: PCMag/Michael Kan)

Tapjoy studies have shown that mobile gamers prefer rewarded ads to interstitials 4-to-1. It’s a valuable insight for advertisers and developers alike when it comes maximizing ad revenue, but rewarded ads also have the potential to impact other parts of the user experience and your game’s performance overall.To ensure a healthy portfolio, it’s critical that developers understand the additional impact rewarded ads have beyond ad revenue. This includes their effect on metrics like in-app purchase conversion rate, average user spend, 30-day retention, and daily session count. To find out more, we conducted an in-depth analysis of eight different high-DAU apps across iOS and Android for several varying timeframes to find out how users behave when exposed to rewarded ads compared to those who aren’t.Higher IAP conversion ratesWe studied new app users during a one month period and segmented them into two different groups: Those who engaged with at least one rewarded ad and those who never engaged with an ad. We then compared the IAP conversion rates (or percentage of users that made a first time purchase) for each group.On average, users who engage with rewarded ads are 4.5 times more likely to make in-app purchase versus those who do not.7 out of the 8 of apps studied demonstrated higher conversion rates among those who engaged with ads versus those who did not.In the case of two of the apps studies, we found that users who engaged with an ad were over 9 times more likely to make a purchase.Higher average spend per userWe measured the average spend per user in each app for seven days before and seven days after a user’s first rewarded ad engagement.In all 8 apps studied, user spend increased significantly after they engaged with an ad. The average weighted increase in user spend was 326%. Among the apps studied, the boost in average spend per user ranged from just shy of 200% to over 500%.Increased 30-day retentionWe measured the 30-day retention rates of users who engaged with 1-6 rewarded ads during their first week of using an app. Three types of rewarded ad formats were studied (rewarded video, full-screen interstitial, and offerwall placements) and measured against the average 30-day retention benchmark for all apps.Players who complete just one rewarded ad in the first week — whether a video, full-screen interstitial or an offerwall engagement — have a retention rate of at least 50%, compared to the benchmark of 13%.Rewarded video has the most profound effect on retention of any ad type. 30-day retention steadily increases with each video view, ranging from 53% to 68%, which is 3.5-5 times greater than the benchmark.Higher average daily session countWe measured the average number of user sessions per day — both seven days before and seven days after a user’s first rewarded ad engagement — for each high-DAU app.In all cases, users engaged with apps more frequently after completing a rewarded ad.All 8 apps studied demonstrated a lift in the average number of user sessions among those who completed an ad.The average weighted increase in user sessions across all apps was 34%.What does this mean for developers?4 key monetization strategies became abundantly clear following our research:Make rewarded ads easy to find – To increase visibility, consider adding a button to your app’s home screen or storefront, or utilize in-app messaging or push notifications to promote rewarded offers. Tapjoy’s Native-to-Earn, Message-to-Earn, and Push-to-Earn features make it easy for developers to add and manage these additions right from the dashboard.Explore currency sale promotions – Try running limited-time offers in which your players earn more currency than usual for every rewarded ad they complete. These currency sales can drive serious spikes in revenue. With Tapjoy, it’s easy to personalize your currency sale with custom branding and to control the payout ratio.Introduce ads early – Getting users to interact with ads early in their gameplay increases the chance that they will continue to engage with or make a purchase in your app. Rewarded ads introduce players to the mechanics and benefits of your in-app currency, so it’s important to make ads visible and easy to access during the player’s first few sessions.Integrate multiple rewarded formats – Integrating multiple formats — such as rewarded video and offerwall combined — provides developers with the best opportunity to monetize their users and maximize revenue. Diversifying formats not only unlocks higher eCPMs, but it provides players with the freedom to pick and choose the rewarded offer that appeals most to them.

A film adaptation of hit video game “Split Fiction” starring Sydney Sweeney and directed by Jon M. Chu has landed at Amazon MGM Studios, Variety has confirmed. As Variety first reported last month, along with the news of Sweeney’s casting (the actress signed on to the project March 6, the day the game launched) and Chu directing, the script for the movie is being written by “Deadpool & Wolverine” screenwriters Rhett Reese and Paul Wernick. Related Stories From developer Hazelight Studios and publisher Electronic Arts, “Split Fiction” blends fantasy and science fiction, following a pair of authors, Mio and Zoe, who become trapped in the worlds they wrote. Written by director and Hazelight studio chief Josef Fares and Sebastian Johansson, “Split Fiction” is a co-op adventure game that features gameplay mechanics involving split-screen combat, platforming challenges and differing abilities for each character. Popular on Variety The “Split Fiction” film will be produced by Mike Goldberg and Dmitri M. Johnson’s Story Kitchen (formerly dj2 Entertainment) and Chu’s Electric Somewhere. Sweeney, Story Kitchen’s Timothy I. Stevenson, and Hazelight Studios’ founder Josef Fares and COO Oskar Wolontis are executive producing. “Even in early development here at Hazelight, it was clear how much potential ‘Split Fiction’ had to become a kick-ass movie,” Wolontis told Variety Monday. “We now know it’s got a shot at becoming something truly special with such an amazing creative team behind it. Jon M. Chu, Sydney Sweeney, Rhett Reese and Paul Wernick, together with Story Kitchen, have all been champions and true fans of this project since day one, and we can’t wait to see their vision for this movie come to life! Amazon MGM has shown intense interest in this project and we’re happy to see them show both confidence and clear intent to bring this movie to all current and future fans of ‘Split Fiction’ out there. We look forward to holding them to that and working together to bring Mio and Zoe to screen.” It has yet to be decided whether Sweeney will be playing Zoe or Mio, and the film is actively looking to cast her co-star. Released March 6, “Split Fiction” quickly became a hit with players and critics alike, receiving positive reviews and massive sales. According to Hazelight, the game sold more than two million copies in the first week following its launch, and that number continues to rise at a rapid clip. Variety first reported the “Split Fiction” film was in the works, and attracting top Hollywood studios for a bidding war, during the Game Developers Conference in San Francisco in March. “Split Fiction” marks the third film adaptation Hazelight has set up with Story Kitchen, following projects in development based on games “It Takes Two” (also at Amazon MGM Studios and counting Dwayne Johnson’s Seven Bucks as producer) and “A Way Out.”

Drones Set To Deliver Benefits for Labor-Intensive Industries: Forrester By John P. Mello Jr. June 3, 2025 5:00 AM PT ADVERTISEMENT Quality Leads That Turn Into Deals Full-service marketing programs from TechNewsWorld deliver sales-ready leads. Segment by geography, industry, company size, job title, and more. Get Started Now. Aerial drones are rapidly assuming a key role in the physical automation of business operations, according to a new report by Forrester Research. Aerial drones power airborne physical automation by addressing operational challenges in labor-intensive industries, delivering efficiency, intelligence, and experience, explained the report written by Principal Analyst Charlie Dai with Frederic Giron, Merritt Maxim, Arjun Kalra, and Bill Nagel. Some industries, like the public sector, are already reaping benefits, it continued. The report predicted that drones will deliver benefits within the next two years as technologies and regulations mature. It noted that drones can help organizations grapple with operational challenges that exacerbate risks and inefficiencies, such as overreliance on outdated, manual processes, fragmented data collection, geographic barriers, and insufficient infrastructure. Overreliance on outdated manual processes worsens inefficiencies in resource allocation and amplifies safety risks in dangerous work environments, increasing operational costs and liability, the report maintained. “Drones can do things more safely, at least from the standpoint of human risk, than humans,” said Rob Enderle, president and principal analyst at the Enderle Group, an advisory services firm, in Bend, Ore. “They can enter dangerous, exposed, very high-risk and even toxic environments without putting their operators at risk,” he told TechNewsWorld. “They can be made very small to go into areas where people can’t physically go. And a single operator can operate several AI-driven drones operating autonomously, keeping staffing levels down.” Sensor Magic “The magic of the drone is really in the sensor, while the drone itself is just the vehicle that holds the sensor wherever it needs to be,” explained DaCoda Bartels, senior vice president of operations with FlyGuys, a drone services provider, in Lafayette, La. “In doing so, it removes all human risk exposure because the pilot is somewhere safe on the ground, sending this sensor, which is, in most cases, more high-resolution than even a human eye,” he told TechNewsWorld. “In essence, it’s a better data collection tool than if you used 100 people. Instead, you deploy one drone around in all these different areas, which is safer, faster, and higher resolution.” Akash Kadam, a mechanical engineer with Caterpillar, maker of construction and mining equipment, based in Decatur, Ill., explained that drones have evolved into highly functional tools that directly respond to key inefficiencies and threats to labor-intensive industries. “Within the manufacturing and supply chains, drones are central to optimizing resource allocation and reducing the exposure of humans to high-risk duties,” he told TechNewsWorld. “Drones can be used in factory environments to automatically inspect overhead cranes, rooftops, and tight spaces — spaces previously requiring scaffolding or shutdowns, which carry both safety and cost risks,” he said. “A reduction in downtime, along with no requirement for manual intervention in hazardous areas, is provided through this aerial inspection by drones.” “In terms of resource usage, drones mounted with thermal cameras and tools for acquiring real-time data can spot bottlenecks, equipment failure, or energy leakage on the production floor,” he continued. “This can facilitate predictive maintenance processes and [optimal] usage of energy, which are an integral part of lean manufacturing principles.” Kadam added that drones provide accurate field mapping and multispectral imaging in agriculture, enabling the monitoring of crop health, soil quality, and irrigation distribution. “Besides the reduction in manual scouting, it ensures more effective input management, which leads to more yield while saving resources,” he observed. Better Data Collection The Forrester report also noted that drones can address problems with fragmented data collection and outdated monitoring systems. “Drones use cameras and sensors to get clear, up-to-date info,” said Daniel Kagan, quality manager at Rogers-O’Brien Construction, a general contractor in Dallas. “Some drones even make 3D maps or heat maps,” he told TechNewsWorld. “This helps farmers see where crops need more water, stores check roof damage after a storm, and builders track progress and find delays.” “The drone collects all this data in one flight, and it’s ready to view in minutes and not days,” he added. Dean Bezlov, global head of business development at MYX Robotics, a visualization technology company headquartered in Sofia, Bulgaria, added that drones are the most cost and time-efficient way to collect large amounts of visual data. “We are talking about two to three images per second with precision and speed unmatched by human-held cameras,” he told TechNewsWorld. “As such, drones are an excellent tool for ‘digital twins’ — timestamps of the real world with high accuracy which is useful in industries with physical assets such as roads, rail, oil and gas, telecom, renewables and agriculture, where the drone provides a far superior way of looking at the assets as a whole,” he said. Drone Adoption Faces Regulatory Hurdles While drones have great potential for many organizations, they will need to overcome some challenges and barriers. For example, Forrester pointed out that insurers deploy drones to evaluate asset risks but face evolving privacy regulations and gaps in data standardization. Media firms use drones to take cost-effective, cinematic aerial footage, but face strict regulations, it added, while in urban use cases like drone taxis and cargo transport remain experimental due to certification delays and airspace management complexities. “Regulatory frameworks, particularly in the U.S., remain complex, bureaucratic, and fragmented,” said Mark N. Vena, president and principal analyst with SmartTech Research in Las Vegas. “The FAA’s rules around drone operations — especially for flying beyond visual line of sight [BVLOS] — are evolving but still limit many high-value use cases.” “Privacy concerns also persist, especially in urban areas and sectors handling sensitive data,” he told TechNewsWorld. “For almost 20 years, we’ve been able to fly drones from a shipping container in one country, in a whole other country, halfway across the world,” said FlyGuys’ Bartels. “What’s limiting the technology from being adopted on a large scale is regulatory hurdles over everything.” Enderle added that innovation could also be a hangup for organizations. “This technology is advancing very quickly, making buying something that isn’t instantly obsolete very difficult,” he said. “In addition, there are a lot of drone choices, raising the risk you’ll pick one that isn’t ideal for your use case.” “We are still at the beginning of this trend,” he noted. “Robotic autonomous drones are starting to come to market, which will reduce dramatically the need for drone pilots. I expect that within 10 years, we’ll have drones doing many, if not most, of the dangerous jobs currently being done by humans, as robotics, in general, will displace much of the labor force.” John P. Mello Jr. has been an ECT News Network reporter since 2003. His areas of focus include cybersecurity, IT issues, privacy, e-commerce, social media, artificial intelligence, big data and consumer electronics. He has written and edited for numerous publications, including the Boston Business Journal, the Boston Phoenix, Megapixel.Net and Government Security News. Email John. Leave a Comment Click here to cancel reply. Please sign in to post or reply to a comment. New users create a free account. Related Stories More by John P. Mello Jr. view all More in Emerging Tech

A Bridgehampton home that Susan Breitenbach, a Hamptons real estate agent, sold for more than $14 million in May 2025. Courtesy of Susan Breitenbach 2025-06-05T08:07:01Z Save Saved Read in app This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Hamptons home sales are booming despite stock market volatility and recession fears. Home sales were up about 86% in the first quarter over the same time period in 2024. Prices and sales are soaring in the beach destination despite Wall Street volatility. As Wall Street reels with every twist and turn in President Donald Trump's trade war, there's little sign of economic uncertainty in Manhattan's favorite beach destination just 100 miles east.Demand for luxury real estate in the Hamptons is only growing. Sales and home prices have surged over the last year.Rising prices in the tony enclave are nothing new. The pandemic ushered in a surge of buyers looking to escape the city. The median sales price of homes in the Hamptons in the first quarter of 2025 was more than $2 million, a 13% increase over the previous year and nearly double what it was five years ago, according to a recent Douglas Elliman report.Perhaps more notably, the pace of sales is also soaring this year. Sales were up about 86% in the first quarter over the same time period last year, according to the Douglas Elliman report. That's after home sales fell in the wake of the pandemic buying frenzy, and haven't returned to the highs of 2020."The tired story of the housing recovery coming out of the pandemic is high prices, low sales," Jonathan Miller, who leads the real estate appraisal and consulting firm Miller Samuel and authored the Douglas Elliman report, told Business Insider. "The Hamptons doesn't fit that pattern. It's high prices and high sales."Miller added that the sharp rise in sales is "unusual and counter to the prevailing trends."Susan Breitenbach, a top Hamptons real estate agent with the Corcoran Group, said she's closed more deals so far this year than in all of 2024. She's sold a slew of luxury homes, including a $17.5 million oceanfront property in Bridgehampton, an Amagansett home for $13 million, a Sag Harbor home on less than an acre for $21 million, and a Southampton house for $5.6 million. "It was really very surprising," Breitenbach, who's been selling property in the Hamptons for more than 30 years, told BI. A Southampton home Breitenbach sold for $5.6 million in May 2025. Courtesy of Susan Breitenbach While some agents like Breitenbach are closing deals at the highest end of the market, the middle of the Hamptons market — homes between $1 million and $5 million — has driven the uptick in sales. These "meat and potatoes" sales, Miller said, are way up.So-called "tangible assets," like luxury real estate in very in-demand markets, can be particularly attractive to certain investors when markets are wobbly.Global stocks plummeted following Trump's "Liberation Day" tariffs announcement, and while they've mostly rebounded since the administration walked back some of their tariffs, markets are on edge. In early June, the Organization for Economic Co-operation and Development cut its forecast for the US economic growth rate in 2025 from 2.8% to 1.6%, citing Trump's trade policies."Hamptons real estate has a long history of appreciating over time," Andrew Saunders, president of the Hamptons real estate brokerage Saunders & Associates, told BI. Some more cautious buyers "might look at what's happening in the world at large and say, 'You know what, I'm going to wait a month or two and let the world take a few spins and see what happens.' But we're not seeing that occur en masse."Miller credited big Wall Street bonuses in 2024 for some of the spike in sales and agreed that market volatility could be pushing some to diversify their investments.The Hamptons rental market might be more sensitive to economic uncertainty. Breitenbach said rental interest was much higher than usual in January but has since fallen off. Miller, who doesn't track rentals in the Hamptons, added that an increase in sales would naturally lead to a drop in rental demand.Breitenbach recently listed a home on 2.5 acres of oceanfront property in Water Mill, which sits between Southampton and Bridgehampton, for $44.5 million. "It's not about the house, it's about the land," she added. "And that's a deal." A Southampton home Breitenbach sold for nearly $12.7 million in January. Courtesy of Susan Breitenbach Hamptons buyers are from all over. Breitenbach said she's seen an uptick in California buyers this year, and she still has foreign buyers. But a large share of her clients are still Manhattanites."A lot of it is the high-end New York — Manhattan — buyers, because there aren't many places they can go on the weekends," she said.Breitenbach said Memorial Day weekend this year felt more packed than ever out east, even with cooler-than-normal weather. "It looked like Fourth of July," she said.She doesn't expect market volatility and even threats of a recession to change that."It's going to be a busy summer in the Hamptons regardless," Breitenbach said. "People keep coming out here no matter what's going on."

IT Pros ‘Extremely Worried’ About Shadow AI: Report By John P. Mello Jr. June 4, 2025 5:00 AM PT ADVERTISEMENT Enterprise IT Lead Generation Services Fuel Your Pipeline. Close More Deals. Our full-service marketing programs deliver sales-ready leads. 100% Satisfaction Guarantee! Learn more. Shadow AI — the use of AI tools under the radar of IT departments — has information technology directors and executives worried, according to a report released Tuesday. The report, based on a survey of 200 IT directors and executives at U.S. enterprise organizations of 1,000 employees or more, found nearly half the IT pros (46%) were “extremely worried” about shadow AI, and almost all of them (90%) were concerned about it from a privacy and security viewpoint. “As our survey found, shadow AI is resulting in palpable, concerning outcomes, with nearly 80% of IT leaders saying it has resulted in negative incidents such as sensitive data leakage to Gen AI tools, false or inaccurate results, and legal risks of using copyrighted information,” said Krishna Subramanian, co-founder of Campbell, Calif.-based Komprise, the unstructured data management company that produced the report. “Alarmingly, 13% say that shadow AI has caused financial or reputational harm to their organizations,” she told TechNewsWorld. Subramanian added that shadow AI poses a much greater problem than shadow IT, which primarily focuses on departmental power users purchasing cloud instances or SaaS tools without obtaining IT approval. “Now we’ve got an unlimited number of employees using tools like ChatGPT or Claude AI to get work done, but not understanding the potential risk they are putting their organizations at by inadvertently submitting company secrets or customer data into the chat prompt,” she explained. “The data risk is large and growing in still unforeseen ways because of the pace of AI development and adoption and the fact that there is a lot we don’t know about how AI works,” she continued. “It is becoming more humanistic all the time and capable of making decisions independently.” Shadow AI Introduces Security Blind Spots Shadow AI is the next step after shadow IT and is a growing risk, noted James McQuiggan, security awareness advocate at KnowBe4, a security awareness training provider in Clearwater, Fla. “Users use AI tools for content, images, or applications and to process sensitive data or company information without proper security checks,” he told TechNewsWorld. “Most organizations will have privacy, compliance, and data protection policies, and shadow AI introduces blind spots in the organization’s data loss prevention.” “The biggest risk with shadow AI is that the AI application has not passed through a security analysis as approved AI tools may have been,” explained Melissa Ruzzi, director of AI at AppOmni, a SaaS security management software company, in San Mateo, Calif. “Some AI applications may be training models using your data, may not adhere to relevant regulations that your company is required to follow, and may not even have the data storage security level you deem necessary to keep your data from being exposed,” she told TechNewsWorld. “Those risks are blind spots of potential security vulnerabilities in shadow AI.” Krishna Vishnubhotla, vice president of product strategy at Zimperium, a mobile security company based in Dallas, noted that shadow AI extends beyond unapproved applications and involves embedded AI components that can process and disseminate sensitive data in unpredictable ways. “Unlike traditional shadow IT, which may be limited to unauthorized software or hardware, shadow AI can run on employee mobile devices outside the organization’s perimeter and control,” he told TechNewsWorld. “This creates new security and compliance risks that are harder to track and mitigate.” Vishnubhotla added that the financial impact of shadow AI varies, but unauthorized AI tools can lead to significant regulatory fines, data breaches, and loss of intellectual property. “Depending on the scale of the agency and the sensitivity of the data exposed, the costs could range from millions to potentially billions in damages due to compliance violations, remediation efforts, and reputational harm,” he said. “Federal agencies handling vast amounts of sensitive or classified information, financial institutions, and health care organizations are particularly vulnerable,” he said. “These sectors collect and analyze vast amounts of high-value data, making AI tools attractive. But without proper vetting, these tools could be easily exploited.” Shadow AI Everywhere and Easy To Use Nicole Carignan, SVP for security and AI strategy at Darktrace, a global cybersecurity AI company, predicts an explosion of tools that utilize AI and generative AI within enterprises and on devices used by employees. “In addition to managing AI tools that are built in-house, security teams will see a surge in the volume of existing tools that have new AI features and capabilities embedded, as well as a rise in shadow AI,” she told TechNewsWorld. “If the surge remains unchecked, this raises serious questions and concerns about data loss prevention, as well as compliance concerns as new regulations start to take effect.” “That will drive an increasing need for AI asset discovery — the ability for companies to identify and track the use of AI systems throughout the enterprise,” she said. “It is imperative that CIOs and CISOs dig deep into new AI security solutions, asking comprehensive questions about data access and visibility.” Shadow AI has become so rampant because it is everywhere and easy to access through free tools, maintained Komprise’s Subramanian. “All you need is a web browser,” she said. “Enterprise users can inadvertently share company code snippets or corporate data when using these Gen AI tools, which could create data leakage.” “These tools are growing and changing exponentially,” she continued. “It’s really hard to keep up. As the IT leader, how do you track this and determine the risk? Managers might be looking the other way because their teams are getting more done. You may need fewer contractors and full-time employees. But I think the risk of the tools is not well understood.” “The low, or in some cases non-existent, learning curve associated with using Gen AI services has led to rapid adoption, regardless of prior experience with these services,” added Satyam Sinha, CEO and co-founder of Acuvity, a provider of runtime Gen AI security and governance solutions, in Sunnyvale, Calif. “Whereas shadow IT focused on addressing a specific challenge for particular employees or departments, shadow AI addresses multiple challenges for multiple employees and departments. Hence, the greater appeal,” he said. “The abundance and rapid development of Gen AI services also means employees can find the right solution [instantly]. Of course, all these traits have direct security implications.” Banning AI Tools Backfires To support innovation while minimizing the threat of shadow AI, enterprises must take a three-pronged approach, asserted Kris Bondi, CEO and co-founder of Mimoto, a threat detection and response company in San Francisco. They must educate employees on the dangers of unsupported, unmonitored AI tools, create company protocols for what is not acceptable use of unauthorized AI tools, and, most importantly, provide AI tools that are sanctioned. “Explaining why one tool is sanctioned and another isn’t greatly increases compliance,” she told TechNewsWorld. “It does not work for a company to have a zero-use mandate. In fact, this results in an increase in stealth use of shadow AI.” In the very near future, more and more applications will be leveraging AI in different forms, so the reality of shadow AI will be present more than ever, added AppOmni’s Ruzzi. “The best strategy here is employee training and AI usage monitoring,” she said. “It will become crucial to have in place a powerful SaaS security tool that can go beyond detecting direct AI usage of chatbots to detect AI usage connected to other applications,” she continued, “allowing for early discovery, proper risk assessment, and containment to minimize possible negative consequences.” “Shadow AI is just the beginning,” KnowBe4’s McQuiggan added. “As more teams use AI, the risks grow.” He recommended that companies start small, identify what’s being used, and build from there. They should also get legal, HR, and compliance involved. “Make AI governance part of your broader security program,” he said. “The sooner you start, the better you can manage what comes next.” John P. Mello Jr. has been an ECT News Network reporter since 2003. His areas of focus include cybersecurity, IT issues, privacy, e-commerce, social media, artificial intelligence, big data and consumer electronics. He has written and edited for numerous publications, including the Boston Business Journal, the Boston Phoenix, Megapixel.Net and Government Security News. Email John. Leave a Comment Click here to cancel reply. Please sign in to post or reply to a comment. New users create a free account. Related Stories More by John P. Mello Jr. view all More in IT Leadership