NemoClaw Knowledge Wiki

Shadow AI - has Escient started to think about targeting it

3 min read

Please see the attached. I had the idea over the past while about focusing services on what I expect to be a massive problem: ungoverned AI solutions introducing cyber and governance risk into organisations, especially when agentic frameworks and messy (but pwoerful) systems like MCP servers start to be invoked. Co-pilot use is one things - but users will not stop at that. We know how much work consutlancies gained from helping organisations overcome shadow IT.  I asked perplexity about the phrase Shadow AI today, and not many firms are focussed on it.

Wide open space Bec and Michael! See below and attached.

I have used Perplexity.ai to prepare a report for you on Shadow AI and how to pitch for resolving the issue in private healthcare sector. In short - it’s a massive problem and a big opportunity.  

The Big Four consulting firms (Deloitte, PwC, KPMG, and EY) are heavily investing in AI capabilities and governance services, though not specifically focused on shadow AI in healthcare there appears to be a significant gap in the market for SME consultancies specifically focused on shadow AI governance in private hospitals. The research reveals that:

  • 84% of private hospitals lack AI oversight committees
  • 67% of healthcare staff use unauthorized AI tools
  • Only 11% of Australian organizations have formal AI policies
  • 63% of ANZ employees are using AI in the workplace without proper governance

Most existing consultancies are either:

  • Large firms (Big Four) focusing on enterprise-level AI implementations rather than specific shadow AI governance
  • Specialized healthcare AI companies developing diagnostic tools rather than governance frameworks
  • General IT consultancies that address broader IT governance but not specifically shadow AI

Competitive Landscape Assessment: The total addressable market for AI governance consulting in Australian private hospitals is estimated at $81.5 million AUD, with significant white space for SME consultants to serve the 543 hospitals lacking AI governance.

Key advantages for SME consultants include:

  • Agility: Faster response to emerging AI governance needs
  • Cost-effectiveness: Lower overhead enabling competitive pricing
  • Specialization: Deep expertise in specific AI technologies and healthcare regulations
  • Local presence: Understanding of Australian regulatory requirements

The research indicates that while several consultancies operate in adjacent spaces, there is limited direct competition for SME consultants specifically targeting shadow AI governance in Australian private hospitals, presenting a significant market opportunity for specialized firms with the right expertise and positioning.

Regards, Paul

Dr. Paul Cooper, Ph.D, FAIDH, CHIA, AFHEA, GAICD

Director, Longboardfella Consulting Pty Ltd

www.longboardfella.com

ACN: 650 470 474

Ph: +61 487 198 798

paul@longboardfella.com.au

LinkedIn: https://www.linkedin.com/in/digitalfella/

Twitter:  @longboardfella

Zoom: 939-985-8184

![[./resources/Shadow_AI-has_Escient_started_to_think_about_targeting_it.resources/Shadow AI in Healthcare Market Opportunity Analys.pdf]]

Graph View