The passenger transport industry, long reliant on manual processes and experience-based decision-making, is undergoing significant digital transformation. This is largely down to the integration of AI. While AI can bring a raft of efficiencies to the industry, many workers are unknowingly using shadow AI tools, unaware of the potential data privacy and security risks this could present. Gary Rigler, Vice President of passenger transport at digital transformation business OneAdvanced, looks at the challenges and opportunities this present, and why bus and coach operators needs smart systems, but with compliance and security still in mind.
The case for AI for transport operators is compelling. From speaking with colleagues from across the sector, we’ve seen that AI is successfully being used throughout the industry to reduce costs, improve efficiencies and support productivity. Typical uses of AI within the industry include:
- Predictive maintenance: Predictive maintenance powered by AI can reduce vehicle downtime by up to 50%, operational costs by 20%, and potential fuel costs by 15%.
- Vehicle replacement optimisation: AI can analyse data to determine the optimal time for vehicle replacement, considering factors like mileage and potential repair costs.
- Analysis of absence pattern and driver fatigue identification: AI can analyse absence and work data to identify potential driver fatigue and reasons for increased sick days.
While it is encouraging that organisations are embracing this technology to drive efficiencies, are they implementing AI in a considered and planned way? Without fully understanding the AI landscape, businesses risk sleepwalking into the problem of shadow AI.
The perils of unapproved shadow AI
So, what is shadow AI? In simple terms, it is the unauthorised use of artificial intelligence tools within an organisation. It occurs when colleagues use free or with low-subscription AI engines, like ChatGPT or Google Gemini, without the explicit approval, knowledge, or oversight of an IT department or security teams. Even if it’s done with good intent, without understanding how your data is being handled, processed, used and where it is stored there could be wider implications for data privacy and your security policies.
This is why I strongly believe information security and the application of AI should be a board-level agenda item. When it goes wrong, it can have huge ramifications for an organisation’s reputation. Examples of data that should not be shared on unauthorised AI platforms include:
- Internal financial data revealing profit/loss statements, budgets, or forecasts.
- Customer or client data violating GDPR, or other privacy laws.
- Legal contracts and agreements exposing strategies, NDAs, or supplier agreements.
- Employee records and HR data breaching HR confidentiality and labour laws.
- Strategic Business Plans leaking acquisition plans, investment strategies, or market expansions.
- IT security and infrastructure details providing a blueprint for hackers to exploit vulnerabilities.
- Board meeting minutes and executive discussions – leaking confidential decisions or sensitive leadership strategies.
We wouldn’t share this information outside of our own organisations without proper safeguards in place, so why would we happily upload it to external third-party AI agents without having our eyes open to the possible security implications?
A survey we commissioned as we launched our own AI product revealed a shocking 64% of UK workers are using AI in their jobs without restriction. A quarter (26%) of businesses have no way of tracking AI use in the workplace, putting their data security at risk. And 28% of teams are using AI tools independently, without a cohesive, company-wide plan of action. This is where the risks of shadow AI comes into play.
Meanwhile, although 85% of workers are now logging into AI tools at work, more than a third (38%) said their biggest worry is data security and privacy – showing that there is some awareness that how these systems are being used may be putting their data at risk.
How to stay safe
Don’t get me wrong – for future growth in the sector, it’s essential that organisations embrace the potential offered by AI. As outlined, the opportunities for the efficiencies and insights it can deliver are huge. But information security and the strategic application of AI are two of the most significant topics facing any leadership team today. It’s crucial that businesses take a planned approach to its deployment and adoption.
So, to start the process, we have five suggestions to help a business avoid the problems of shadow AI:
- Establish a clear AI strategy and usage policy: Develop a company-wide AI strategy and a separate AI usage policy. This provides guidelines for responsibly using AI within the organisation and ensures that AI is used in the right way for the right purposes, complementing your overall data protection and privacy policies.
- Prioritise data quality, accessibility, and management: Recognise that AI systems are “only as good as the data that goes into them”. Significant effort should be made to ensure data is of good quality, accurate, consistent, and accessible, with proper permissions in place. Centralise all relevant business data from disparate sources into a “regimented system”.
- Utilise secure and authorised AI platforms: Opt for AI solutions built with data privacy at their core, where data remains private, is not used to train models, and is processed entirely within secure, approved environments (for example, within the UK). This counters the risk of sensitive information being leaked through unauthorised public AI tools.
- Invest in AI literacy and training for employees: Promote AI literacy among staff, emphasising that AI is a “complementary tool” to help with jobs, rather than a replacement. Train employees on how to understand what AI can and cannot do, and how to effectively interact with it by providing context and specific questions. This also means making AI accessible for all through user-friendly interfaces and training materials. Being proactive with your teams on the use of AI can take a lot of the perceived fear factor out of using this technology.
- Start small and collaborate with data experts: It is advisable to “start small” with AI adoption and then scale up. Collaborate closely with data experts within the organisation to ensure that any AI plans are thoroughly discussed, and that data is managed correctly from the outset. This approach helps bridge the gap in understanding how to interact with AI effectively. Don’t be afraid to reach out for support in helping to devise your AI strategy.
The road ahead: AI’s role in a changing industry
UK transport operators continue to face pressures – from driver shortages, rising costs increasing regulations and emissions targets. There is no doubt AI offers a path forward in terms of resilience, scalability, efficiencies and a competitive edge.
OneAdvanced’s data shows AI adoption is climbing. By helping operators navigate this transformative phase with an integrated AI strategy, alongside a clear governance framework, we can ensure organisations avoid the pitfalls of shadow AI and are perfectly placed to embrace the opportunities offered by the new digital landscape.
For further information and support on the use of AI within the transport sector visit https://www.oneadvanced.com/ai/passenger-transportation/ or email hello@oneadvanced.com
About Gary
Gary Rigler is a sector expert with over 20 years of experience in driving digital transformation through SaaS solutions. His expertise lies in empowering Passenger Transport organisations to optimise their financial management and streamline spend. With a wealth of knowledge from years of working closely in the passenger transport sector Gary has cemented his reputation as a trusted advisor. His industry knowledge enables him to provide tailored guidance, helping organisations navigate the complexities of digital transformation and achieve their goals.
