Read the following passage about THE SHADOW AI PARADOX and mark the letter A, B, C or D on your answer sheet to indicate the best answer to...

Read the following passage about THE SHADOW AI PARADOX and mark the letter A, B, C or D on your answer sheet to indicate the best answer to each of the following questions from 23 to 30.

Contemporary organizations face an unprecedented technological challenge as employees increasingly circumvent sanctioned digital frameworks to leverage generative artificial intelligence applications. KPMG's comprehensive analysis reveals that clandestine AI utilization has become ubiquitous across professional environments, driven primarily by workers seeking expedited workflows and enhanced capabilities that are not available through officially endorsed platforms. This phenomenon, termed "shadow AI," emerges when personnel perceive institutional alternatives as cumbersome, outdated, or insufficiently responsive to operational demands. Survey findings illuminate a troubling disconnect: while forty-one percent of respondents acknowledge organizational governance protocols exist, forty-four percent concurrently admit violating established guidelines regarding AI deployment.

The ramifications of unsupervised AI adoption extend considerably beyond mere policy infractions. Approximately fifty-seven percent of employees report committing errors attributable to artificial intelligence outputs, frequently accepting generated content without conducting their verification procedures. Perhaps most alarmingly, nearly half of the surveyed workers acknowledge transmitting confidential corporate information to unauthorized external platforms. These behaviors expose enterprises to multifaceted vulnerabilities encompassing data exfiltration, intellectual property compromises, regulatory non-compliance, and reputational deterioration. A January 2025 security breach affecting DeepSeek's conversational AI infrastructure exemplifies how inadequate oversight mechanisms can precipitate catastrophic exposure of sensitive organizational records.

Rather than implementing draconian prohibitions that potentially suppress beneficial innovation, KPMG advocates establishing comprehensive governance architectures capable of channeling experimental enthusiasm productively. The consultancy recommends creating centralized AI transformation bodies alongside cross-functional steering committees responsible for evaluating emerging technologies. Organizations should simultaneously develop unambiguous operational policies while constructing controlled laboratory environments where personnel can safely explore novel applications without endangering institutional security or regulatory standing.

Practical implementation necessitates deploying robust technical safeguards, including secured development ecosystems, systematic auditing protocols, and curated menus offering pre-approved AI alternatives. Employee education programs incorporating scenario-based instruction prove essential for cultivating appropriate judgment regarding AI utilization boundaries. Furthermore, organizations must foster psychological safety cultures, encouraging transparent disclosure of unauthorized tool experimentation rather than concealment. Discovery mechanisms enabling continuous monitoring of AI proliferation across enterprise networks complete this defensive architecture, transforming potential vulnerabilities into competitive advantages.

https://kpmg.com/z

Question 23: According to the passage, all of the following are consequences of shadow AI adoption EXCEPT?

A. Accelerated employee productivity improvements

B. Intellectual property compromises

C. Regulatory non-compliance

D. Reputational deterioration

Question 24: The word “cumbersome” in paragraph 1 is OPPOSITE in meaning to _________.

A. unwieldy                                        B. laborious                                C. ponderous                                D. streamlined

Question 25: The word “their” in paragraph 2 refers to _________.

A. artificial intelligence outputs

B. committing errors

C. employees

D. generated content

Question 26: The word “draconian” in paragraph 3 could be best replaced by _________. 

A. lenient                                        B. stringent                                C. pragmatic                                        D. ambiguous

Question 27: Which of the following best paraphrases the underlined sentence in paragraph 4?

A. Companies should cultivate environments where employees feel comfortable openly reporting unsanctioned AI usage instead of hiding it.

B. Corporations ought to establish frameworks requiring employees to secretly document unauthorized AI applications before implementing them.

C. Businesses need to develop protocols that penalize workers for failing to disclose their experimental activities with approved technologies.

D. Enterprises must create mechanisms allowing supervisors to covertly monitor employee interactions with artificial intelligence platforms daily.

Question 28: Which of the following is TRUE according to the passage?

A. Over half of surveyed employees confessed to sharing sensitive company data with external artificial intelligence platforms.

B. KPMG strongly recommends that organizations implement strict bans on all unauthorized generative AI tools in workplaces.

C. Approximately forty-one percent of workers admitted to breaching their company's established AI governance regulations.

D. More than half of employees acknowledged making mistakes because they relied on AI-generated content without verification.

Question 29: In which paragraph does the writer mention the definition and prevalence of shadow AI in workplaces?

A. Paragraph 2                                B. Paragraph 1                                C. Paragraph 4                                D. Paragraph 3

Question 30: In which paragraph does the writer mention which element is essential for successful shadow AI management?

A. Paragraph 3                                B. Paragraph 2                                C. Paragraph 4                                D. Paragraph 1