Solving the shadow IT crisis in travel

Date:
Fri, 17 Apr 2026 10:31:44 +0000

Description:
AI and shadow IT threaten travel security. Business leaders need to update policies and improve user-friendliness.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Tech Radar Pro Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Become a Member in Seconds Unlock instant access to exclusive member features. Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. You are
now subscribed Your newsletter sign-up was successful Join the club Get full access to premium articles, exclusive features and a growing list of member rewards. Explore An account already exists for this email address, please log in. Subscribe to our newsletter From digital transformation and the advent of mainstream AI, technology has become integral to business travel. But as your IT estate expands, so does its shadow.

The unsanctioned use of technology at work, better known as shadow IT, is a pervasive challenge for security , finance, and regulatory compliance. Paul Dear Social Links Navigation

Regional Vice President for Supplier Services, EMEA at SAP Concur. Today, tools are compounded by AI, with 78% of employees admitting to using unapproved AI systems at work. While media conversation has shone a light on shadow IT, theres little discussion around the granular impact on individual business functions like travel. Article continues below You may like How organizations can mitigate shadow AI without stifling innovation Is 'Shadow AI' a threat to your business? Report claims workers are increasingly more willing to cut corners and take risks Your employees are using AI, whether
you like it or not - but are they using AI securely? Why employees bypass official tools When employees face obstacles in authorized tools, they turn
to unapproved platforms due to poor user experience. Slow, rigid, or unintuitive workflows drive them towards convenient, consumer-grade tools
with the appeal of user familiarity.

For example, if it takes too long to load listings or a traveler cant use their preferred payment method, they may switch to an alternative platform. Navigating the shadow AI surge The emergence of consumer-oriented AI tools
has complicated the shadow IT landscape. AI-enabled travel booking platforms promise massive efficiency gains, but many employees are unaware of the potential risks they pose.

AI models are known to scrape outdated or invalidated data at times, leading to inaccurate outputs. Or, if employees use AI tools to find better deals outside of established booking platforms, this can once again undermine corporate travel strategy. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features
and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

Moreover, if employees input sensitive corporate data or travel itineraries into unmanaged tools, it can also lead to data breaches, travel safety risks, and non-compliance with privacy regulations.

For example, if an employee uses consumer scanning apps, unauthorized receipt capture applications, or unapproved browser extensions, receipts that contain personal information may be uploaded to non-approved cloud storage.

A free OCR (optical character recognition) app could store images on third-party servers. Such a breach could expose employees travel patterns and transaction details. What to read next Friend or foe? AI: The new cybersecurity threat and solutions Shadow AI 'double agents' are outpacing security visibility and that's a serious concern for UK businesses How businesses can stop their AI agents from running amok The fallout of travel shadow IT When shadow IT finds its way into travel and expense (T&E) processes, it can have costly impacts on the bottom line.

Bookings on unauthorized systems can result in scam purchases, chargebacks, lost discounts, and surplus administrative burden that add up to millions of pounds worth of expenses and lost savings. These are the main sources of financial loss: Direct fraud and reimbursement losses: Fake receipts,
inflated claims, and duplicate expense filings are potentially harder for businesses to track and assess when bookings are made in third-party tools. Illegitimate bookings and rogue vendors: Scam booking sites and compromised portals can cause direct card fraud, requiring investigation and chargebacks Inefficient spending: Employees lose access to negotiated corporate rates and discounts when booking via unapproved channels. Increased administrative overhead: The need for manual expense reports, receipt chasing, and coordination of multiple payment sources increases workload and processing costs. In addition, fragmented data results in inadequate reporting and inconsistent analytics, increasing processing time for T&E reports. The
impact of shadow IT is felt in many aspects of travel. Third-party bookings can undermine an employers ability to fulfil their duty of care when
employees fail to log details of their travel, or plans change at the last minute

Without a digital audit trail to follow, travel managers lack visibility on employee movements and may struggle to contact them in emergencies.

Unapproved T&E systems also increase security vulnerability. These tools typically handle sensitive data, including personal employee information, financial transactions, and travel itineraries.

Without robust protections, theyre a prime entry point for threat actors, putting travelers and organizations of all sizes at risk of fraud, identity theft , and financial harm.

Lastly, shadow IT can jeopardize regulatory compliance.

As strict frameworks such as General Data Protection Regulation (GDPR), Sarbanes-Oxley Act of 2002 (SOX), and Payment Card Industry Data Security Standard (PCI DSS) places increasing demands on organizational data
practices, many are falling foul of mandates around data privacy and retention, financial reporting, and more which can result in permanent reputational harm, not to mention fines into the billions. Strategies to secure travel management Legal, IT, finance, operations, and HR teams must work together to deter employees from using unauthorized tools. But beyond a blanket ban on third-party tools - which the data tells us isnt effective - what policy changes and change management strategies can they implement?

Employee education is the first line of defense. Regularly training staff in shadow IT risks, security standards, and compliance requirements is an important step in this process. This will enable employees to better understand how approved systems are imperative to protecting the organization's data, financial well-being, and duty of care.

If your business hasnt yet, it may be time to establish guidelines around AI usage. Communicate the benefits and risks and create a culture that
encourages responsible AI implementation and healthy experimentation, so people dont feel they have to use AI tools in secret.

You can also take inspiration from shadow IT. While it might sound counterintuitive, uncovering the tools employees use can help illustrate
where there are gaps in the organization's tech stack, and the kinds of features and workflows employees expect from travel tools.

Ultimately, the biggest counter to shadow IT is a technology portfolio that incorporates consumer-grade, secure T&E platforms. Invest in user-friendly tools that empower travelers to book with ease; they shouldnt feel obliged to use corporate apps - they should want to. We've featured the best business plan software. This article was produced as part of TechRadarPro's Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. If you are interested in contributing find out more here: https://www.techradar.com/news/submit-your-story-to-techradar-pro



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