S10E2286 November 2026

S10E228: Shadow AI: Your Free ChatGPT Is a Data Breach with Joe Klich

📅 Planning & Scheduling 📈 Data Analytics 🤖 AI & Technology 👔 Leadership & Management ⚠️ Risk Management ⚖️ Governance & Compliance

S10E228

S10E228: Shadow AI: Your Free ChatGPT Is a Data Breach with Joe Klich

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Someone on your project pasted the schedule into a free ChatGPT account to get it analysed. That is a data breach, and the confidentiality clause they signed does not care that it was convenient. Joe Klich calls it shadow AI, and he thinks it is the most under-discussed risk in construction right now. Joe spent 18 years in commercial construction operations, from the field through executive leadership, before founding Klich Consulting, an operational risk advisory for construction executives. He joins Dale and Val to talk about how fast AI capability is actually doubling (the METR curve has gone from every seven months to every three), why most people cannot keep up and what that gap means for project teams, and how regulators in the US, UK and Australia are all reacting rather than leading. In this episode: why Chinese models at three cents a task will put AI everywhere and magnify the governance problem; the difference between AGI and ASI and why nobody smarter than you will design their own off switch; AI as a hammer, not a colleague; why companies get AI backwards by starting with the tool instead of their people; the cybersecurity parallel from 2010 and why insurers, not legislators, will force AI governance by refusing to pay for AI-related losses; what the jobs of the future look like when a team of ten becomes five; and Joe's closing advice for anyone using AI at work. Connect with Joe Klich on LinkedIn: https://www.linkedin.com/in/joe-klich-96020635/ Hosted by Dale Foong and Val Matthews. The Project Chatter Podcast has been running since 2018 and is free to access, always.

Guest

Joe Klich

Founder & Principal at Klich Consulting

Joe Klich spent 18 years in commercial construction operations, from the field through executive leadership, before founding Klich Consulting, an operational risk advisory practice for construction executives. His work focuses on the problems leaders cannot see yet — from visibility gaps in project reporting to teams adopting AI faster than their organisations can govern it. Joe helps executives capture AI's real productivity gains without the ungoverned exposure that usually comes with them.

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