How CIOs can Drive Major Cost Efficiencies Through Real-Time Energy Monitoring

Within manufacturing, energy spend is a line item that can stealthily gnaw at the margins if it’s not measured and responded to in real-time. India Glycols had a need for visibility in power consumption at a major manufacturing plant in Uttarakhand. The power spend was a hefty one on the cost sheet, but the system would not receive energy information timeously enough to facilitate immediate responses.

The issue was not simply about consuming too much power. It was also about the lack of timely, reliable information on how much energy was being drawn from the grid, generated in-house, or procured through exchange-based arrangements. “What we were seeing is that entries were getting made in SAP much later, sometimes after days or even weeks. That left very little opportunity to identify where we could optimize energy spend,” Atul Govil, Chief Transformation Officer & Head (SAP & IT), India Glycols, says.

For a manufacturing business, that delay has real consequences. When energy data is updated late, batch costing becomes less accurate, deviations from normal consumption patterns go unnoticed, and pricing decisions can be affected. “If the production cost itself changes significantly because of energy and other input costs, profitability takes a serious hit,” he says.

Leveraging Smart Energy Meters, Analytics and Cloud 

To address this, the team implemented 120-130 smart energy meters across critical panels and equipment, creating a near real-time monitoring system powered by analytics and cloud capabilities. The goal was not only to capture consumption data, but also to match it against generation and understand the balance across the plant as electricity can’t be stored.

The project also helped uncover deeper operational inefficiencies. In some cases, equipment had been sized for older production requirements and was now running at suboptimal load levels. In others, the data pointed to issues that were previously invisible, including process gaps and operating discipline concerns. “We found that some equipment was running far below its ideal efficiency. That was a proxy for problems that would otherwise never come under the radar,” Govil says.

The response included corrective actions such as variable frequency drives, equipment rebalancing, and in some cases, interchange of assets within the plant. This was not a simple technology deployment. It required shutdown planning, coordination across teams, and a sustained effort to build internal confidence in the new model. “We had to sell the value internally,” Govil notes. “People had been operating these plants for 20 or 30 years, so it took time to show how this would create day-to-day value.”

Once the system stabilized, the impact became clear. Manual reporting reduced significantly, teams began using dashboards and alerts to act faster, and the organization gained a single source of truth for energy-related decisions. “The focus shifted from collecting data to making sense of the data on a real-time basis,” he says.

The initiative delivered an estimated 3% to 4% optimization in energy costs. More importantly, it changed the operating model. Energy management was no longer a retrospective reporting exercise; it became part of the plant’s daily decision-making rhythm. “It was not just a tech product,” Govil says. “It was a radical shift in the way we operated.”

India Glycols is now looking to build on that foundation by introducing an AI layer to extract deeper insights from the platform. As Govil puts it, the next step is to “bridge AI” into the system so the organization can derive even more value from the data already being captured.

 

What CIOs can Learn from Driving Tech Adoption in a Traditional Business

A decade back, real estate, just like other legacy sectors of the economy, had limited investment for, and adoption of, digitization. The focus revolved primarily around announcing launches, listing properties, sale transactions, and collections, with relatively less priority given to customer experience, transparency, and engagement across the purchase  lifecycle.

According to Arvind Singh, then CTO & Product Officer at real-estate company Puravankara, the greatest hurdle in the real estate industry wasn’t about technology,  it was about mindset. In a laggard historically traditional industry, getting people to believe that technology can solve immediate pain points (as opposed to being an isolated project) needed a lot of trust-building, buy-in, strategic realignment and ownership from business.

 Meanwhile, the flow of information in the organization wasn’t very integrated and seamless. Teams often had to re-enter customer details and repeat the same queries at multiple stages, which slowed down response times, created inefficiencies and impacted customer experience badly. This is not a matter of implementation, but a structural problem.

“If the mindset to change and appreciation of transformation is not there, technology will never succeed and with missing ownership and stakeholder participation, it will never get adopted,” says Singh, now the CTO at BPTP. 

Prior to COVID, a lot of historically traditional businesses hadn’t migrated to the cloud much, kept things local, and depended a lot on desktops. The crisis changed that almost overnight. “COVID forced every industry to get online. Transformation in such sectors often happens not by choice, but by circumstance,” says Singh.

Building Momentum

With the Puravankara leadership, Singh’s winning recipe was first to understand how technology can actually solve business problems, bring operational efficiency, enable seamless information availability across customer touch points for best customer engagement and experience, not talking IT or Digital transformation for just the technology’s sake. 

“The whole idea is to ensure that people at their job should have access to right information when it’s needed and the customer is engaged better and benefited most,” Singh says.

He also believes that one should focus on alignment. Adoption could not be driven only from the top. Business teams had to see the value in the solution, active involvement and training had to be built into the conceptualization, execution and rollout plan from the beginning. “Bring people on board,” Singh says, explaining that implementation works best when teams understand that it’s solving their problem and appreciate the benefit of the outcome.

A prime success was in customer service enablement where the team created a 360 view of the entire customer purchase journey. Puravankara could see how many tickets were there, at which stage the tickets were, why the response was taking long, which of its functions were facing challenge or causing the delay, and how the response TAT could be improved, adding more transparency and accountability to the teams who were also enabled to make decisions at greater speed with accuracy.

“That success helped build confidence for larger efforts. Once the organization saw measurable results from a focused use case, it became easier to secure support for broader transformation projects,” recalls Singh. “Show the results faster. Start with low-hanging fruit, and people will begin to believe in the approach.”

Directions for Technology Leaders

Singh’s experience offers useful insights for IT decision makers in traditional sectors. Start with the business pain point, not the technology. Build a cross-functional case around the outcome you want to deliver. Deliver visible value early so that the organization can see the change on the ground.

Just as importantly, Singh believes technology programs should be phased. “First build the framework, then automate processes, and only then move toward AI-led transformation. This creates a stronger foundation for long-term adoption and reduces resistance across the business,” he says.

In the real estate space too, the buyer’s expectations have transformed. The buyer was now looking at receiving real-time updates, project visibility, and a better digital experience from search to handover.

Singh at BPTP, is now aiming at increased system integrations, enhanced customer experience, and AI for operating efficiency. 

“Hybrid partnerships is the key and especially with startup firms which have capabilities in developing specific solutions for the real estate domain,” says Singh.

The vision is to upgrade not just the technology, but also boost conversions and the top line to build a more agile business.

AI: The Transformation Angel or a Trojan Horse?

Since generative Artificial Intelligence (AI) models entered the mainstream in 2022, the AI bandwagon has continued to gain momentum, with no signs of slowing. The scale of investment flowing into AI-led initiatives has created a strong sense of urgency, and, in many boardrooms, a fear of missing out. For many executives, it has become almost essential to include AI in corporate narratives, strategy presentations, and investor statements, regardless of their own understanding of the matter or whether the organization has developed a practical roadmap for its adoption.

The irony is that incomplete, inaccurate, and sometimes hallucinated outputs produced by AI systems are often accepted as gospel truth, while the more measured and pragmatic views of technology leaders are overlooked. The excitement around AI is understandable, but an impatient endeavour will only lead to stalled pilots, which is visible across the industry.

A common misconception among business executives is that AI is the solution to every technology problem and that it can operate autonomously from day one. AI is undoubtedly a compelling and transformative technology, but it still requires experienced professionals to design, deploy, supervise, and manage it on a sustained basis. Given the speed of evolution, a framework developed today may no longer be relevant tomorrow or become legacy in no time; hence, continuous oversight.

Stringent Guardrails Needed

Like any other enterprise technology initiative, AI also requires a robust security framework. In fact, because of its probabilistic nature, wide-ranging access to information, and ability to generate or act on content, AI demands even more stringent guardrails. These safeguards are essential to prevent data leakage, inaccurate decision-making, regulatory breaches, operational disruption, and unintended consequences within enterprise systems. 

With DPDPA 2023 around the corner, the data protection and privacy aspect of AI is not yet fully understood. There are exceptions, though, like USD 900 million Meta’s investment in Cred, which, according to claims, is primarily to get hold of millions of crème de la crème Indian users’ expense patterns, before DPDPA makes it difficult to analyse them for targeting marketing without consent.

Rising Costs

Cost is another factor that is often underestimated. Conversational AI, generative AI, and autonomous agent-based models can involve significant expenditure, depending on their architecture, usage patterns, integration requirements, and the way they are configured. A carefully designed combination of deterministic systems and AI-led capabilities may offer a better total cost of ownership for enterprises. However, this approach requires active involvement from business teams with clear knowledge of business processes, an area where tech leaders usually find huge resistance owing to ignorance or lack of knowledge. 

AI cannot be effectively integrated into a process unless the process itself is properly understood. Business teams must help define the workflow, exceptions, decision points, data dependencies, and expected outcomes. Only then can AI be woven into the process in a way that creates measurable value rather than merely adding another layer of technological complexity.

The Human Angle 

More recently, several prominent technology experts have raised concerns about the protection of intellectual property while using AI models. These concerns are genuine in several use cases. In conversational AI interactions, users may unknowingly disclose proprietary information, confidential business knowledge, internal strategies, technical designs, legal positions, or operational insights.

Human behaviour can further intensify this risk. People often enjoy demonstrating the depth of their knowledge, particularly when interacting with a system that appears intelligent and responsive. In doing so, they may reveal far more than they intended. Such interactions can potentially expose valuable organisational knowledge to external AI platforms, especially where data retention, model training, and information-handling practices are not clearly understood.

This is where the analogy of the Trojan horse becomes relevant. AI may enter the enterprise as a powerful productivity tool, welcomed for its ability to improve efficiency, accelerate decision-making, and transform business processes. Yet, if adopted without adequate governance, it may also carry hidden risks relating to data, intellectual property, security, cost, accountability, and organisational dependence.

The real question, therefore, is not whether AI is an angel of transformation or a Trojan horse. It has the potential to become either.

The outcome will depend on how responsibly enterprises adopt it. Organisations that combine ambition with governance, innovation with security, and automation with human oversight are more likely to benefit from AI. Those that embrace it without understanding its limitations may eventually find themselves controlled by the very technology they expected to control.

AI should neither be feared nor worshipped. It should be understood, governed, and deployed with purpose.

 

Beyond the AI Label: How Enterprises Can Identify True AI Capabilities

Artificial Intelligence has moved from experimentation to a boardroom priority. Enterprises across industries are evaluating AI platforms, and intelligent automation solutions to improve productivity, enhance customer experiences, and create new business models. However, as the AI market expands, a critical challenge has emerged for business leaders: How do organizations distinguish genuine AI capabilities from Marketing claims?

The decision is no longer only about choosing between Public AI and Private AI. It is also about understanding what is truly happening behind the AI experience being offered by technology vendors. Many vendors today pitch their platforms as “AI-Native”, projecting that AI is deeply embedded into their architecture, workflows, and operating model. However, enterprises must look beyond the label and examine whether the solution is powered by intelligent automation or mainly relies on Generative AI models supported by significant human intervention behind the scenes.

Traits of an AI-Native Solution

Generative AI has transformed how organizations interact with technology. Large language models can summarize information, generate content, answer questions, and assist employees across multiple functions. These capabilities are valuable. However, a Generative AI interface alone does not automatically make a solution AI-native.

An AI-native enterprise solution should demonstrate deeper characteristics: the ability to understand business context, reason across enterprise knowledge, learn from interactions, execute workflows, integrate with business systems, and operate with appropriate levels of autonomy. It should not simply generate responses but help organizations make decisions and complete business processes.

This distinction is becoming increasingly important as enterprises evaluate AI vendors. A platform that appears intelligent on the surface may still depend heavily on human reviewers, manual validation, outsourced operations teams, or hidden workflows to produce its final outcomes. Human-in-the-loop models can be valuable, especially for quality control and high-risk decisions, but organizations must have transparency about where human involvement exists and how much of the process is genuinely automated.

For Enterprise leaders, the main question should be: “Are we investing in AI capability, or in an AI-enabled service that relies on human effort behind the scenes?”

 Public AI platforms offer significant advantages. They provide access to advanced models, rapid innovation, and faster deployment without requiring organizations to build AI infrastructure from scratch. They are ideal for productivity use cases, experimentation, content creation, and broad employee adoption. However, Public AI poses important considerations around data privacy, intellectual property, security, and regulatory compliance. Enterprises must understand how their data is handled, whether information is used for model improvement, and what governance controls are available.

Private AI addresses many of these concerns by enabling organizations to deploy AI within controlled environments using enterprise data, security policies, and customized models. This approach is particularly important for industries where confidentiality, compliance, and operational accuracy are critical. Yet Private AI alone is not the answer. A poorly designed private solution can simply replicate generic AI capabilities inside an enterprise environment without delivering meaningful business transformation. The real value comes from combining trusted data, domain knowledge, workflow integration, and intelligent automation.

This is why many Enterprises are moving toward a Hybrid AI strategy. Public AI can accelerate innovation and employee productivity, while Private AI can support sensitive business processes requiring higher levels of control and customization.

AI Vendor Evaluation

For Digital & Technology leaders, AI vendor evaluation requires a new level of due diligence. Beyond asking about model size, features, and benchmarks, organizations should evaluate:

Is the solution truly AI-Native or primarily a Generative AI interface?

What percentage of workflow is automated versus Human-assisted?

How does AI learn and improve within the Enterprise context?

Can the organization audit decisions and recommendations?

How does the platform protect Enterprise data?

Does it integrate with Business processes, or simply provide answers?

The strategic question for leaders is no longer “Which AI vendor has the best technology?” It is “Which AI partner can deliver measurable business outcomes with transparency, security, and sustainable intelligence?”

In the AI era, competitive advantage will come from enterprises that can separate AI reality from AI marketing and build an intelligent ecosystem where technology and human expertise work together to create lasting value. The future enterprise will not be defined by who adopts AI fastest, but by who adopts AI most intelligently. Organizations must balance innovation with trust, speed with governance, and automation with accountability.

Achin K Sharma is a seasoned digital & technology leader having over 24 years of industry experience across multiple domains with leading brands.

A C-Suite Leader’s Security Primer for the Claude Mythos Era

On April 7, 2026, Anthropic unveiled Claude Mythos Preview, its most powerful frontier model to date and one that excels at cybersecurity tasks, specifically, vulnerability discovery in code. Mythos is capable of finding vulnerabilities and exploiting internal testing. And now, the board of directors and the executive management teams of every major organization already are posing the inevitable question to C-Suite leaders about Claude Mythos: “What are you doing about Claude Mythos? How are you preparing for a world where adversaries are using AI to find vulnerabilities in minutes?”

The answer is simple. They need to fight AI-assisted attacks with defensive security that autonomously and preemptively finds and fixes exposures at machine speed. This is the only way to report to the board on the number of security workflows the organisation has automated with AI and how it’s driven up the effectiveness of your security program. The urgency of the situation is perhaps why forward-thinking leaders are implementing continuous threat exposure management to counter the effects of AI-assisted attacks even before they occur. 

Why does Exposure Management Matter when Claude Mythos Exists?

Frontier AI like Mythos and Claude Code Security address only the first stage of this lifecycle—identifying vulnerabilities. Exposure management addresses the rest. It allows organizations to discover every asset across your environment be it IT, cloud identity, AI and OT, understand whether they’re vulnerable and prioritize remediation based on business and technical context. 

With tens of thousands of vulnerabilities, organizations struggle to understand which ones to plug first. Mythos and Claude Code Security don’t show organizations how a combination of vulnerabilities forms an attack chain leading to a critical system or intellectual property. Exposure management helps organizations see individual vulnerabilities in context and how they combine to create high-risk attack paths. Frontier models like Mythos and exposure management operate in entirely different domains and solve fundamentally different problems.  

Being Security Ready in the Age of AI-Assisted Attacks

With 87% of organizations identifying AI-related vulnerabilities as the fastest-growing cyber risk, the urgency of building a security program to tackle AI-assisted attacks can’t be underestimated. This is where exposure management helps you strengthen your security posture. 

Anthropic suggests that organizations patch everything on the Cyber Security Infrastructure Agency’s Known Exploited Vulnerabilities list. What it discounts is CVEs that haven’t landed on the list but could be very critical to business continuity. Tenable Research has tracked 201 CVEs that weren’t included in the KEV but could impact organizations due to the hardware or software they affect. The Citrix Session Recording Vulnerability that Tenable Research began watching nearly a full year (286 days) before it hit the KEV is one such example. 

With the vulnerability discovery capabilities of Mythos falling into the hands of adversaries, the number of vulnerabilities could possibly grow by 10X or more. This means prioritizing which vulnerabilities to plug first becomes the most critical tool in a defender’s arsenal. Exposure management does just that. Using vulnerability priority rating, it narrows the majority of CVEs flagged as critical or high by CVSS to the 1.6% that create actual risk for the organization. It does this by analyzing the vulnerability’s reachability, identity context of what permissions a compromised asset has inherited, and whether it leads to a domain admin, business criticality of the vulnerability and attack path analysis. 

For operational vulnerability management at enterprise scale, where tens of thousands of assets are assessed continuously and findings flow directly into compliance reporting and remediation workflows, probabilistic outputs generated by frontier models are not acceptable because they can produce different results by using the same prompt twice. Exposure management solves these constraints too because it combines data from scanners, endpoint agents, passive network monitors, web application scanners, OT-specific sensors, identity directory connectors, and cloud API integrations to discover every asset across live enterprise environments and deterministically assess whether deployed systems are vulnerable. It can even identify shadow AI footprints. 

This data is then used to map attack paths and provide visibility into how threat actors combine vulnerabilities, misconfigurations, and excessive permissions to breach critical assets. This is essential to proactively close exposures and preventively disrupt the attacker’s journey.  

Instead of being overwhelmed by AI assisted attacks, organizations must focus on intelligent prioritization, closing the gaps, and gaining full visibility into dangerous attack paths with the right exposure management solutions. Look for platforms that have cross-domain telemetry integrated with an agentic AI engine that automates asset discovery, tagging, triage, prioritization, and remediation workflows. With it, C-Suite leaders can confidently tell boards they are fighting fire with fire and it is an organization’s best bet to tackle AI-assisted attacks.

10 Ways AI Models Get Attacked, and How to Defend Them

If you are deploying LLMs, it helps to hold one idea in mind before you get into the specifics. Almost every attack below is a variation on a small number of failures: untrusted input treated as instruction, sensitive data flowing where it should not, unverified components pulled in from outside, and a model trusted to act or answer without anyone checking. Fix those at the boundaries and most of this list gets much smaller. 

The stakes are highest in regulated industries, where a single leak or a single bad action can mean exposed customer records, a compliance breach, or patient harm, so the examples below are drawn mostly from banking, financial services, and healthcare.

1.Prompt Injection

A model cannot reliably tell the difference between its own instructions and the input a user provides. So an attacker who is told ‘no’ can often get to ‘yes’ by reframing the request, or by hiding an instruction where the model will read it. 

Picture a retail bank’s support assistant instructed never to reveal another customer’s account details. A direct request is refused, but the attacker reframes it as a fraud review and the assistant hands the details over. That is the direct form. In the indirect form, a claims team asks the assistant to summarize a document a customer uploaded, say a scanned loan application, and hidden inside that file is an instruction telling the model to ignore its rules and forward account data elsewhere. 

The defense is layered. Tighten the system prompt with your own rules, but do not rely on it alone, because you will never anticipate every case. Put an AI gateway between the user and the model to inspect what goes in and what comes out, blocking unwanted requests and redacting sensitive responses. Then test it yourself with a batch of injection attempts and see where it breaks.

2. Sensitive Information Disclosure

Models get trained or grounded on real business data: customer records, health information, financials, and proprietary material. With the wrong controls, an attacker can coax that information back out with a well-phrased prompt. A hospital that grounds a clinical assistant on patient histories can find it surfacing one patient’s diagnosis inside another patient’s session, and a bank that fine-tunes on transaction data risks the same with account numbers and balances. A patient attacker can go further, querying the model over and over and recording each answer until they have reconstructed large parts of it, an approach known as a model inversion or extraction attack. Defend it by sanitizing the data so only what you need reaches the model, scanning outbound responses for sensitive patterns like account or policy numbers, and enforcing strong access controls on the model, the data, and the users. And close the basics: outdated software, weak authentication, and unencrypted data are all leaks waiting to happen.

3. Supply Chain Vulnerabilities

A model does not appear from nowhere. It begins with data, gets trained and tuned, and sits under an application, and almost no organization builds its own from scratch. Instead, teams pull pre-built models, datasets, and libraries from public sources that are far too large to inspect by hand, which means unverified material entering your environment. A payments firm or a hospital network that adopts an open model to accelerate a project inherits every weakness in that model and the code around it, often without a full inventory of what it has taken on. The infrastructure underneath counts too. Vet every component and the parties behind it, trace the provenance of what you bring in, scan and run adversary-style testing against your systems, and keep everything patched. A supply chain is only as strong as its least examined link.

4. Data and Model Poisoning

If data is the lifeblood of a model, corrupted data is a slow toxin. An attacker who mixes a little error into training data, or tampers with a document the model treats as ground truth, can degrade accuracy, introduce bias that compounds over time, or plant behavior that acts like hidden malicious code. 

In banking, poisoned data behind a fraud or credit model can quietly tilt decisions, letting through what should be flagged or skewing who gets approved for a loan. In healthcare, a tampered reference behind a clinical assistant can bend its guidance in ways nobody notices until there is harm. These attacks are often subtle and hard to detect, which is exactly what makes them dangerous as you come to rely on the model. The recurring theme applies here more than anywhere: know your sources. Control who can touch the model, the training data, and any grounding sources, and put change control around all three so nothing gets altered quietly.

5. Improper Output Handling

The risk does not end when the model produces an answer. If that output flows into another system, into a web page, a database, or a command line, it can carry a payload with it, including cross-site scripting, SQL injection, or remote code execution. A bank that lets an assistant generate queries against account systems, or that renders model output directly in a customer portal, can pass an injection straight into production if that output is never checked. The failure is treating model output as trustworthy simply because it came from your own system. Treat it instead the way you would treat input from a stranger. Validate and sanitize anything the model returns before it becomes code, a query, or markup that something downstream will execute.

6. Excessive Agency

The more you connect a model to, the more damage it can do when something goes wrong. A model with access to tools, APIs, plug-ins, and systems that act in the real world becomes a serious liability the moment it is hijacked through an injection, or simply gets an action wrong. The stakes rise fast once the model can act on its own: an assistant able to initiate a payment, adjust a credit limit, or update a patient’s medical record can turn a single hijacked prompt into real financial or clinical damage. 

The fix is least privilege applied to AI: give the model only the reach it genuinely needs, and disconnect it from anything it does not. For any action with real consequences, keep a person in the approval loop, and never let the model make a high-impact change to money, operations, or safety on its own.

7. System Prompt Leakage

The system prompt sets the model’s context, and sometimes teams put things in it that do not belong there, such as the credentials the model needs to reach another application. Asked the right way, the model can be persuaded to reveal them. If that prompt holds the login the assistant uses for a payment gateway or an electronic health record system, a single leak hands an attacker the keys to far more than the chatbot. 

The answer is straightforward: keep secrets out of the prompt entirely, store them securely, and let the model reach them through a controlled path. A guard on the output that catches sensitive values gives you a second line of defense, but the real win is that a secret which was never in the prompt has nothing to leak.

8. Vector and Embedding Weaknesses

Many deployments give the model documents from a store to help it answer, and that store is a target. A tampered document can bleed bad information into responses, and if you are not careful, that information settles in and starts to function as knowledge the model treats as its own. A bank’s assistant that answers from a store of policy and product terms, or a hospital assistant grounded in clinical guidelines, becomes unreliable the moment a doctored document slips into that store. Control what is allowed in, validating every document before it lands and locking down who can add to it. And keep retrieved content temporary, so it supports a single answer and then washes over the system rather than becoming permanent.

9. Misinformation

At some point the question is simply whether you can trust what the model tells you. These systems can be manipulated, and they can also produce confident answers that are wrong. Decisions built on either one rest on shaky ground. A confidently wrong answer about a lending rule, a fee, or a customer’s eligibility can create real compliance exposure for a bank, and a fabricated but plausible clinical detail can be dangerous in a care setting. There is no purely technical fix for this one. 

The defense is discipline: keep critical thinking in the loop, ask whether an answer is reliable and whether it makes sense, and cross-check against trusted sources before acting. Verification has to become a habit, not an afterthought.

10. Unbounded Consumption

Left without limits, an AI system can be overwhelmed the same way any service can. Flood it with too many requests, unusually long ones, or ones that force heavy computation, and it becomes unavailable to everyone else, a denial of service in familiar clothing. There is a financial version too, often called denial of wallet, where an attacker keeps the system busy and runs up your bill. A customer-facing banking assistant knocked offline at month-end, or a metered clinical tool driven into a runaway cost, is both an availability problem and a budget problem. Put bounds in place: rate limit requests per user, set timeouts so a single request cannot tie the system up, and monitor usage with alerts and spending caps.

The Pattern Underneath

Read the list again and the same handful of controls keep reappearing. Know where your models, data, and documents come from. Put inspection at every trust boundary, on the way in, on the way out, and around who has access. Validate rather than trust, especially anything the model produces or ingests. And test your own systems the way an attacker would. None of this is exotic. It is the disciplined application of security fundamentals to a new kind of system, and in regulated industries it is also what regulators and auditors will expect to see. Build it in from the start rather than bolting it on after an incident. The attackers already know this list. Your team should know it better.

Shadow IT: From Prohibition to Managed Coexistence

The concept of shadow IT gained traction between the late ‘80s and ‘90s, back when personal computing began proliferating among staff who naturally started working on their computers at home.

Shadow IT encompasses the implementation of any apps, hardware devices, services, technologies, tools, or devices within a business that are not monitored, authorized or overseen by a corporate IT team. Over time, it became a menace for enterprise IT leaders. 

A new buzzword has now emerged: shadow AI, or the unapproved use of Artificial Intelligence. This could be, for example, the use of generative AI services (like those with ChatGPT, Bard, Gemini and Claude) using your personal, unapproved account to do business.

So what’s the way forward for CIOs to deal with this type of shadow IT?

The Reality Check

First and foremost, a reality check for IT leaders. CIOs simply can’t stop shadow IT in the age of AI. They can try but it is functionally impossible when literally hundreds of AI-powered services exist, when teams are asked to do more with less, and when the business simply moves faster than governance processes. The old strategy of whitelisting approved tools and blocking everything else simply will not work, or is at least extremely difficult.

Zero-trust platforms and firewalls cannot always differentiate between legitimate AI-powered platforms and risky ones. Every day, new AI tools are released, and while there is a clear need for a governance process to limit use or ensure that tools are approved within a specific domain, the process of policing and trying to regulate everything is clearly futile.

Living with it 

The smarter play is to accept that a certain amount of shadow IT is not just inevitable, it’s actually healthy. Business and IT have to work closely together, and if you can’t beat them, join them.

If there is a person in the organization who can use AI to make processes better, why stop them? Today, everyone has limited resources. In a typical organization, if IT had to plan and execute every AI project, the team size would need to triple. Those people simply aren’t available in the market.

What matters is that you don’t shut down the experimentation by full force after shadow IT. Instead, find those people, bring them onboard, and make sure that enterprise data security is not eroded. As a CIO, you should encourage them to work with AI but keep the IT department in the loop. This way you can put guardrails around it.

Those guardrails can be simple:

Data classification rules that spell out what can and cannot go into public AI tools.

Entry channel (application, form, email/alias, Slack channel, etc.): Employees notify and disclose the use of the AI tool.

Briefest due diligence: Before your AI tool interacts with your company’s data, you need to ensure there are at least some security checks in place, such as performing vendor evaluation, analyzing data usage and access permissions.

Where Should CIOs Intervene 

Beyond a point, shadow IT stops on its own. Sometimes it dies its natural death when the tool doesn’t deliver. Sometimes the business reaches out to IT saying, “We’re not able to find a viable solution, please help.” That’s when you know the experiment has matured enough to warrant enterprise support.

Given the current business and technology scenario, some bit of shadow IT is fine. Technology leaders can’t stop the projects. The business is too dynamic, and the line between IT and business has to blur. IT has to get embedded with business, not the other way around.

It’s important for CIOs, however, to keep a tab on red flags such as leaking of data to tools not allowed or the compliance risk associated with the same or a “hallucination” from a model used in making decisions or vendor locked in, which could become a pain to migrate in the future. A little experimentation is healthy; unmanaged risk is not.

The real job of the CIO in the age of AI is not to build gates, but to build guardrails. If someone has reached out to IT and hasn’t been able to get a response quickly, ask yourself: what’s more important — perfect governance or speed?

Look at the overall objective of the organization. Sometimes you have to move quickly because time and money are of the essence. You can’t be handholding everyone — there simply isn’t bandwidth for that.

Just a couple of simple measures can keep tabs on it – such as the number of disallowed AI tools running, the number of incidents related to AI, or the number of business initiatives that sprouted from shadow tests. Those two indicators will indicate where attention ought to be directed.

The Bottom Line

Shadow IT in the age of AI is not a problem to be solved. It’s a signal to be read. It tells you where the business is moving faster than IT, where innovation is happening despite friction, and where your guardrails need to be stronger than your gates.

The CIOs who win in this era won’t be the ones who block the most tools. They will be the ones who enable the most value safely, quickly, and with the business as a partner, not a petitioner. Just make sure IT is in the loop, the data is secure, and the business knows you are on their side.

Sovereign Stack for Indian CIOs: Where BharatGen Fits and How to Scale Safely

As Indian enterprises move from AI pilots to production, the question is no longer just “which model?” but “which stack?” With geopolitical shifts, data sovereignty concerns, and the rise of domestic AI initiatives like BharatGen, CIOs must decide how to balance global frontier models with India-built alternatives without compromising on performance, cost, or control. In this interview with CIONow, Aditya Maheshwari, a BharatGen consortium member, explains where sovereign AI fits in the enterprise stack, how CIOs can adopt it pragmatically, and what it will take to scale safely while building long-term capability.

Can sovereign AI turn into a business imperative, and not just a policy conversation? 

Post current geo political events, most of the Big Tech are dancing to their own government’s tune, which means even AI is becoming like Digital Public Infrastructure – a public good.

Its applications are spreading widely and affecting everyone, not just businesses but ordinary citizens also, through technologies like OCR, image recognition, and generative AI. So the sovereign stack, from compute to application layer, including models, APIs, and data, needs to be sovereign if a country wants to protect its space. 

India, for example, wants to expand its leadership in digital public infrastructure globally through UPI and other services. Over the last 10–15 years we have extended digital governance to citizens, which has also helped create a digital startup ecosystem. We have seen many billion-dollar startups and unicorns. This is not merely a policy decision; it’s the future of the economy. Investment and valuations in this sector are already huge and will only grow.

What will make CIOs trust India-built AI models enough to integrate them into enterprise workflows? 

There are two aspects: intent and capability. Intention covers trust and commitment; capability covers performance and business viability. Compared with frontier models, BharatGen is still evolving, so trust must be built from both sides. Many enterprises, across tiers, are already using BharatGen models, so adoption is happening from both ends.

We are also building domestic capability. Sovereign ventures, like BharatGen, pride themselves on transparency – their data, models and teams are open source and auditable, something that is tricky for businesses, but important as they plan for the future. Concerns linger around future price increases, discontinuance of services or products of foreign players, issues amplified by geopolitical movements and valuations changing at lightning speed.

We need to build an Indian AI infrastructure ecosystem, not just BharatGen but foundational and applied AI companies together, similar to how the software ecosystem matured. Indian IT has earned global trust through coordinated investment, skills, and local institutions. To make the Indian AI story global, stakeholders must invest in trust. Rather than asking “why trust,” the conversation should be about forming partnerships and jointly developing the ecosystem.

Where does BharatGen fit versus global giants, which excel at coding, financial math, and complex reasoning?

Different model sizes serve different tasks. Smaller models (e.g., 17B parameters) won’t directly compete with 500B+ models on some tasks, but they can be ideal for many enterprise use cases. The opportunity is to identify tasks where smaller, local models suffice such as internal automation, document querying, education tools, defence-specific workflows, and other non-public tasks. Success depends on mapping specific tasks to the right model size and deployment approach.

When organizations scale out from testing AI, what’s the biggest challenge they’re going to face deploying India-centric models such as BharatGen?

There are several key challenges:

  • Compute: You will usually need on-prem resources or access to rented cloud instances with these open source models. Compute availability is the top constraint.
  • Evaluation and benchmarking: Creating reasonable, domain specific benchmarks are an unsolved problem. Public benchmarks are helpful but it is easy to game these or they will accidentally spill over into your training data. The reality in your system might differ from performance on benchmark tasks.
  • Real world fidelity: Sometimes state-of-the-art models even fail at simple tasks relevant to their domain such as pulling data out of OCRs even if their benchmark score is excellent.

Many Indian firms currently use global foundation models. How should enterprises balance global models with India-specific models like BharatGen? Should this balance be determined by cost, control, or relevance?

All three. In business, there are immediate, mid-range and long-term priorities. If the customer asks for a certain model: be it from Anthropic or OpenAI or Grok enterprises will make sure it is delivered and that decision will be purely on the basis of cost and availability. But if companies focus only on short-term gain and don’t invest in domestic AI capabilities, they risk long-term dependency on foreign, closed-source models. That risk may not be evident now but grows over the medium to long term.

BharatGen and other domestic players aim to build and support the wider ecosystem, not just sell models. There’s scope for many partnerships, and the Ministry of Electronics & IT and the Department of Science & technology are focused on ecosystem development rather than backing a single startup.

How should Indian CIOs approach Bharat Gen adoption alongside existing foreign models, and plan for a gradual shift in dependency?

The practical approach is hybrid and incremental. Start small: form a compact in-house team, partner with Indian enterprises that are building modules (not just BharatGen), and gradually develop expertise. With that internal capability you can make informed decisions about token budgeting, on-prem versus cloud, required GPU capacity, and future outlook. Until you build a research and development core, you won’t fully understand operational trade-offs. CIOs who grasp token economics and infrastructure nuances will avoid costly information asymmetries in the AI age.

Many enterprises lack data pipelines to scale local LLMs. Is that a major blocker?

Absolutely. Preparing AI training data from text, images, and websites, transforming it from rectangular/tabular forms to instruction/QA/summarization formats, is a major challenge. We are working on data-pipeline solutions within BharatGen to help enterprises generate usable training data, but this remains a widespread gap.

Which enterprises or use cases are ready to adopt BharatGen today, and which should wait?

Ready now:

  • Internal automation tasks (document search, querying scanned PDFs, knowledge-base assistants).
  • Sectors or functions with lower-stakes, high-volume tasks—certain banking document workflows, education content tools, some defence and public-sector applications.
  • Teams willing to pilot parts of their pipeline with a local ecosystem partner.

Should be cautious / may wait:

  • High-stakes, public-facing products that demand cutting-edge broad-reasoning or superior open-domain inference compared to frontier models.
  • Workloads that currently require 500B+ parameter level performance for generalized reasoning or highly complex logic.

Enterprises should evaluate task-level requirements rather than sector-level labels. If the task aligns with the capabilities of smaller/open models, adopt now; otherwise phase in adoption while monitoring model progress.

Our models are openly available on AIKosh and Hugging Face, with 135,000 downloads so far. On enterprise engagements, we are focused on co-building with industry leaders across 4 key segments: Governance, BFSI, Healthcare and Education. 

How CIOs can Modernize Legacy Systems Without Creating Technical Debt

Modernization is most effective when architects are at the helm. In an interaction with CIONow, Chander Khanduja, Group CIDO, Baxy Group explores how companies can integrate legacy systems and edge devices, minimize duplicated data, thoughtfully apply AI and select appropriate cloud models without taking on technical debt.

How do you manage the transition between legacy systems and real-time edge devices without introducing technical debt?

I think this is one of the most challenging aspects. With all the discussion around GenAI, data lakes, and related technologies, one principle has remained unchanged as technology has evolved: the importance of a strong architecture for growth. Even as new layers such as automation, IoT, GenAI, agentic AI, and edge devices have emerged, this core principle still holds true for every organization.

In my previous organizations as well, many of the technologies we talk about today did not exist then. Still, I can recollect the architecture that we had built and talked about during those times. The data, whether from the field, from machines, from a laptop or from a mobile device, it needed to consolidate in a single data warehouse. That basic approach remains relevant today. The real challenge is to ensure that there is no redundant data.

The fact is if you allow redundant data to proliferate into your database you run into real issues. The main thing we were told back when we started still reigns true, which is that your output will be garbage in Garbage out. So any initiative we undertake should ensure that there is one version of the truth.

What best practice helps remove redundant data?

What really matters is what information do you actually need? In many surveys, and this is largely correct, we find that companies hold data they rarely if ever use, as much as 80% in many cases.

The task here is not to abolish the function data plays; you will still want to capture information. But the question becomes: how do you reduce 80 fields to 20 when appropriate. Far too often, we are not careful enough in looking at this in the planning phase of any initiative. It is essential to spend enough time on this step and not just discuss it with the process owners. Data is ultimately consumed by many people across the organization, so you should form a data relevance team.

This should be a cross-functional team with representatives from different functions, and its role should be to discuss what data is required by each stakeholder. That will make the data governance strategy much more relevant.

Are you seeing organizations build such teams?

Yes, many large companies are already doing this. I would honestly say that our current setup is still at a relatively early stage of maturity, because we started our digitization journey only three to four years ago, so we have not reached that stage yet.

But many other companies have already started doing this. Many CIOs in larger knowledge groups already know these approaches, and seasoned CIOs have been doing this for some time.

How do you create bottom-line value with AI? Which use cases do you choose to pursue and which do you choose to abandon?

Step one: find the stakeholder. You need to bring the right people along with the process. If you only identify the process but the key stakeholder is not responsive, any technology implementation is likely to fail. So both people and process matter.

We began with a focused use case in our legal department. We introduced GenAI as a solution there. Our legal head was very open to implementing technology initiatives. That helped a lot.

It has now been running for about one and a half to two and a half years, and we are currently working on two or three use cases there.

My approach over the years has been simple: every technology project must serve one of four purposes.

It must improve controls and compliance.
It must create customer delight.
It must improve operational efficiency.
It must save cost.

I have followed this principle for nearly 25 years, and it still applies today. In legal, for example, compliance benefits are significant, so ROI is easier to justify.

Meanwhile, I have seen another painful trend: even when GenAI wasn’t needed for a problem, people tried to inject a GenAI solution into that problem. That is a bad problem

In reality, GenAI can become very expensive at scale. Token-based models may look attractive at first, but once deployed across the enterprise, costs can rise sharply.

Such technology costs would naturally come down in due course of time. It was the same with IoT where a 2000 rupees technology is now being sold at 100 rupees. This is because technologies evolve, consumption gets more optimized and for a consumer, the cost-benefit comes more in favour. I believe the same will happen with GenAI as well.

Are you building an enterprise-wide AI solution right now?

Not at this stage. We started our SAP implementation only three years ago but in a short period, we have moved quickly.

Right now, we have already implemented enterprise-wide IoT in our plant. For GenAI, however, we are not yet looking at a full enterprise-wide rollout across the plant. That said, we are definitely trying a few things.
We have some pilots running in manufacturing, some work happening in HR, and some initiatives in sales and marketing. Since we also have other businesses, including real estate, there are several customer-facing areas where AI can improve response times and efficiency. We have already begun exploring those opportunities.

How should CIOs think about cloud repatriation as cloud costs rise and sovereign cloud concerns grow?

First your strategy was to go to cloud first since we didn’t have the internal expertise and wanted to go to market very quickly. Cloud vendors raised prices over the last 10-15 years, and there were concerns over sovereignty, and we are also in a geopolitical environment where countries don’t necessarily want to host sensitive data and workload outside their borders. Thus, those organizations that have been to the cloud for 10 to 15 years and have already begun moving their workload to the cloud are the ones feeling the sting of the cost. And they are the first ones to start shifting their strategy towards a hybrid cloud approach.

And that is perhaps the direction to where we will all be moving; hybrid-first, not cloud-first.

The key question now is not just where the data is hosted, but how much control the organization has over it. If the data is already within the same geography, it may not make sense to pay a premium for a sovereign cloud if the cost is many times higher. In some cases, it may be more sensible to use a third-party data center or host the infrastructure on-premises in a secure data center rather than continue with an expensive cloud model.

Why AI Pilots Break at Scale?

As enterprises race to move from AI experimentation to real deployment, the biggest challenges often lie beyond the model itself. In a discussion with CIONow, Badar Afaq, CIO of KCT Group, shares why data readiness, collaboration, and business value are critical to making AI scale.

What is the biggest mistake CIOs generally make when they move from AI pilot projects to enterprise-wide deployment?

The greatest failure is trying to scale before even fixing the data foundation. Pilots work  because they are small, self-contained programs. To get anything meaningful out of AI, technology leaders need to realize that data is the backbone.

My definition of a successful AI initiative begins and ends with three things: classifying data properly, structuring data properly and naming data properly. If you have those things, you have a much better chance. I think CIOs tend to overlook data’s role in all of this.

Who should own these data foundations? Who should drive adoption of AI in the organization?

This must be a collaborative effort. The CIO can evaluate the technology side and understand how AI solutions can be integrated with legacy systems, but the business team plays the most important role in structuring and classifying the data. Since most of the data sits with the business, business leaders must define what data is needed, what the pain points are, and what outcomes they expect.

HR and the training department also have a critical role to play. This isn’t just about technology; it’s about enabling people. There have to be right training programs to ensure teams know how to utilize these tools and what it will look like to operate alongside them.

In larger companies, I have seen the creation of full-time AI roles like a Chief AI Officer. In medium-size companies or SMEs, the CIO could drive the agenda but the CEO has to set the agenda for it.  If the CEO does not champion it, it’s very tough to get any transformation. 

The right model is the CEO sets the vision; the CIO drives execution; the business functions identify the use cases and the HR develops skills and provides training.

What criteria should CIOs use to identify the AI projects to keep and those to discard? 

Any IT project, including AI initiatives, should be evaluated through cost vs. benefits analysis. Before you scale, you need to identify what the expected outputs and KPIs should be and the business value you want the solution to produce. 

Remember AI is not free, particularly with GenAI tools as the token-based use can get costly so you will want to do some cost-benefit analysis there. If the solution provides you with the expected outputs cost effectively continue to scale and if not, review it, potentially discontinue it. I suggest doing this quarterly.

Why are Indian CIOs not adopting Bharat Gen at large?

I think it is awareness and visibility. Bharat Gen is not getting well marketed, neither is it integrated in the widely used enterprise tools like Outlook, Gmail and other workplace software. CIOs do understand the existence and advantages of products like ChatGPT or Claude, as they are very popular and simple to implement into the work flow.

What is the Future of AI in Indian Enterprises? What should a CIO do to get ready for AI?

AI will be the new normal. As Google search, google maps are all household usage now so will Gen AI be for offices and homes. Software solutions are already baking in AI in their features and will increase in the coming times. The next few years are less about will we use AI, but more about will we be responsible and intelligent enough to use it. 

A CIO is not expected to become an AI expert, but they must keep themselves updated and always keep learning, basic awareness will be enough.

CIOs should never stop learning or looking at market trends. Not that they have to take formal courses all the time, but be aware of it. Even an hour or two here and there a week watching news, reading something or listening to a podcast will go a long way. AI evolves at such a rapid pace. The role of the CIO is to identify where it’s of value, where it’s of risk and how the organization can be responsible with the application.

The views expressed here are personal and do not necessarily reflect those of the author’s organization.

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