I’m seeing a broad spread of AI usage in different firms. But whether these organizations are just starting out with AI, or are already a highly sophisticated AI business, one thing is clear to me: most leaders have no idea what AI their people are actually using, or more importantly, how they are using it in their work practices. I’ve been posting about it here.
If you’re in a similar situation you may be thinking it is a compliance problem. Control has slipped. You’re worried about risk.
But the real problem runs deeper. People are finding smarter ways to work, but they are doing it quietly. They’re hiding their AI usage because they aren’t sure what is allowed, or because there is no recognition for sharing. Why share if there’s no upside? Some even fear that if their manager finds out, they will just be given more work.
So their best ideas stay hidden. We learn nothing from our most innovative people. This is called Shadow AI, and it’s everywhere.
Years of designing and running behavioral change (strategy execution) programs have taught me this: we can achieve a massive shift in our culture through a structured change program. But we need to avoid trying to control everything, especially if we want more innovation from our knowledge-workers.
We want people to think for themselves. We want to encourage leading-edge ideas. We just want to avoid risk, and figure out how to scale the improvements across the business, so we can get the value from our best people.
Increasing innovation, while retaining control
One professional firm I worked with wanted to change their work practices amidst a very cynical culture. We established a program, starting with a structured, participative process to discover and identify the desired behaviours. This ensured engagement was diffused through the business. We then set up a way of encouraging and incentivising these behaviours. The “winners” were publicly appreciated in a showcase event. It was fun and engaging, so the successful work practices spread like wildfire.
There was strong PULL momentum, no need to PUSH. Adoption increased from an initial 20% to a critical mass of 80% of people. We made the parameters really clear about what was encouraged and what was not. This ensured the leadership were comfortable and still felt “in control”. The ROI was immediate: one large B2B customer purchase paid for the program.
A structured program orchestrates the best value from AI.
1. Establish a structured AI innovation program
It doesn’t need to be complex. The best programs define a few clear principles such as why AI matters to your strategy, what behaviors you want to see, and how progress will be shared. You can call it an “AI Innovation Program,” “AI-First Framework,” or something that fits your culture. The name isn’t important. The structure is. Design it intentionally. Draw it in a one page strategic framework that will appeal to your Board.
2. Define the behaviors you want to promote
Be clear on the key behaviours you want in your AI culture. It may mean figuring out what an AI-first mindset means in your business. You can nominate some ground rules on usage to keep everyone and your IP safe, while being clear you are encouraging experimentation. You’re looking to balance control, risk, and experimentation.
3. Encourage participation
When people see their peers are appreciated by management, they follow. Everyone wants more appreciation. We love this as human beings. Create positive momentum through a structured activities, such as regular AI showcases where those who are sharing their learnings are formally recognised. The trick is to make them more than mere “show and tell” sessions. Link them to your business strategy. Keep repeating your behavioural messages, such as “we think AI-first”.
When you replace fear of misuse with a structured program that rewards visibility, Shadow AI transforms from risk to advantage. This approach works whether your organization is just starting or already ahead. A structured approach unlocks scale; culture sustains it.
If you’d like to discuss this further, and join practical conversations with peers who are working on strategic projects in complex environments, please join us in The Turbochargers Hub. Stay Ahead. Execute Faster. Stay Relevant. If we aren’t learning, we’re going backwards.
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“If you double the number of experiments you do per year you’re going to double your inventiveness.”
Jeff Bezos, Founder and Executive Chairman, Amazon
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About Lisa Carlin
Lisa Carlin is a Strategy Execution Specialist. She works with business leaders to go from strategy to plan to result with culture intelligence and AI.
Lisa is author of the globally acclaimed newsletter, Turbocharge Weekly, read by 8,000 business leaders.
Lisa’s career includes roles at McKinsey and Accenture, then running her own business since 1999. Over this time she has delivered over 50 implementations with a 96% success rate.