Podcast Summary: "80% of AI Use Happens Off the Grid": How Lanai Software Reveals the Hidden World of Enterprise AI

Podcast Information:

• Title: Lead With AI
• Host: Dr. Tamara Nall
• Guest: Lexi Reese, CEO and Co-Founder of Lanai Software
• Episode Release Date: June 3, 2025

Introduction

In this episode of Lead With AI, Dr. Tamara Nall engages in a deep conversation with Lexi Reese, the CEO and Co-Founder of Lanai Software. The discussion centers around the hidden utilization of AI within enterprises and how Lanai Software provides crucial visibility and governance to manage this covert AI usage effectively.

Guest Introduction

Lexi Reese introduces herself as a seasoned professional with extensive experience in building essential infrastructures that amplify human potential. Having previously contributed to Google’s real-time machine learning ads engine and scaling Gusto’s payroll and health insurance services, Lexi highlights her passion for creating systems that support significant technological shifts, especially in the realm of AI.

Lanai Software Overview

Lexi explains that Lanai Software is the first platform designed to offer CIOs and CISOs real-time, prompt-level visibility into how AI is being utilized across their organizations. The platform focuses on AI observability and security, ensuring that AI interactions are transparent, safe, and aligned with business objectives.

Lexi Reese [03:18]: "Lanai is an observability and security platform that helps people see the interactions between humans and AI when they're happening, why they're happening, and how risky those are."

Key Insights and Discussions

1. The Hidden Extent of AI Usage

A significant revelation shared by Lexi is that 80% of AI use occurs "off the grid", meaning it happens without the organization's knowledge or oversight. This lack of visibility can lead to unintended risks and compliance issues.

Lexi Reese [04:09]: "80% of AI use happens off the grid. It cannot manage what it can't see."

2. The Critical Need for AI Governance

Lexi emphasizes the paradox where companies rapidly adopt AI technologies without establishing the necessary infrastructure to monitor and manage their AI usage. This gap can result in both security vulnerabilities and unintentional misuse of AI tools.

Lexi Reese [04:27]: "We're in this AI era and companies don't need more AI tools. They need intelligence about their AI."

3. Real-World Case Study: Insurance Company Incident

A pivotal moment for Lanai occurred when Lexi learned about an insurance company's misuse of AI tools. A sales leader reported increased upsell rates thanks to AI, but upon investigation, it was discovered that employees were unlawfully using customer data to discriminate based on zip codes—a proxy for race.

Lexi Reese [05:04]: "Sales team was uploading customer data into an AI tool that had been quietly added to their existing customer relationship system... using zip code to decide who or who not to sell to is illegal."

This incident underscored the necessity for platforms like Lanai that provide comprehensive oversight of AI interactions.

4. Inside Lanai: How It Works

Lanai functions by detecting AI interactions across the enterprise, classifying use cases, and labeling associated risks—all in real time. The platform ensures this without disrupting workflows or infringing on employee privacy by focusing on pattern detection rather than content monitoring.

Lexi Reese [06:54]: "We detect AI interactions, classify them to identify the use case, and label the risks using AI itself."

An example highlighted is Lanai's rapid detection of a Chinese AI tool, DeepSoft, which many organizations only discovered two weeks after its usage began—Lanai identified it within minutes.

5. Transforming Organizational Response to AI

Lexi shares an anecdote about a healthcare executive initially alarmed by clinicians using multiple AI tools. Lanai's insights shifted his perspective from shutting down AI usage to scaling its positive applications, such as improving patient care times and reducing documentation burdens.

Lexi Reese [09:34]: "His perspective shifted from shut this down to scale. This is the power of visibility, transforming apparent chaos into strategic opportunity."

6. Ethical Considerations and Human-Centric Approach

Lanai prioritizes balancing AI visibility with employee privacy. The platform aggregates and anonymizes data to prevent individual surveillance, adhering to the mantra "don't be creepy" as advised by one of their advisors.

Lexi Reese [15:56]: "Our ethical line is very clearly balancing visibility with privacy... We're focusing on pattern detection, not content monitoring."

Future Vision: AI Integrated Workforce by 2030

Lexi envisions a future where AI is seamlessly integrated into daily workflows, becoming as ubiquitous as digital tools are today. AI and human workforces will operate in harmony, with Lanai facilitating this integration by providing the necessary visibility and governance.

Lexi Reese [17:28]: "Every organization will effectively have dual workforces, your human workforce and your AI workforce."

She believes that organizations with the best visibility into their AI operations will thrive, leveraging AI to drive intentional and value-driven outcomes.

Practical Takeaways for Listeners

Lexi Reese offers actionable advice for leaders looking to understand their organization's AI usage:

1. Conduct an Anonymous Survey: Create a five-question survey to identify which AI tools employees are using and for what tasks. Ensure anonymity to encourage honesty.

   Lexi Reese [20:16]: "Create a five question anonymous survey asking your teams which AI tools they're actually using day to day and for what tasks."

2. Understand Hidden AI Utilization: Recognize that teams might be using significantly more AI tools than anticipated, uncovering both hidden risks and opportunities for innovation.

3. Prepare for Lanai Integration: For organizations ready to scale AI innovation securely, joining Lanai’s waiting list is recommended.

Rapid Fire Segment

In a fun and insightful rapid-fire round, Lexi shares her thoughts on various topics:

• Most Overrated Tech Trend: Agents
• Most Underrated Tech Trend: AI Breakthroughs
• AI Native Detection: [Lexi did not specify; likely a category designation]
• One Book Everyone Should Read: The Atlas of AI by Kate Crawford
• Boldest AI Prediction: Without proper visibility and guardrails, AI will automate more jobs than it creates.

Lexi Reese [25:33]: "The Atlas of AI by Kate Crawford."

Lexi Reese [25:38]: "Unless we equip leaders with visibility and guardrails like Lanai provides, AI will automate more jobs than it will create."

Conclusion and Contact Information

Dr. Tamara Nall wraps up the episode by encouraging listeners to connect with Lanai Software for further engagement. Lexi Reese provides various contact avenues:

• Website: withlanai.com
• LinkedIn: Follow Lanai and Lexi Reese personally
• Learning Journeys: Available on Lanai’s website to help leaders navigate AI integration effectively

Lexi Reese [26:23]: "Thanks with lanai.com is our website and you can sign up there to say you're interested and we'll get back to you."

Final Thoughts

This episode of Lead With AI offers valuable insights into the often-overlooked aspects of enterprise AI usage. Lexi Reese’s expertise highlights the critical need for visibility and governance in AI adoption, ensuring that organizations can harness AI's full potential while mitigating risks. Listeners gain a comprehensive understanding of how platforms like Lanai Software are essential in shaping a future where AI integration is both innovative and responsible.