Shadow AI

The unsanctioned use of AI tools by employees without the knowledge or approval of IT and security teams, creating hidden data, compliance, and security risks.

What is Shadow AI?

Shadow AI is the use of AI tools, models, and services by employees without the knowledge or approval of their organization’s IT and security teams. A common example is staff using a public generative AI tool like ChatGPT to draft content, analyze data, or fix code. The intent is rarely malicious; people simply want to work faster. But because these tools sit outside official channels, they are not covered by the organization’s security, governance, or compliance controls.

How is Shadow AI different from Shadow IT?

  • Shadow IT stores data: Unapproved software mostly holds or moves data.
  • Shadow AI consumes data: AI tools actively process inputs, and many public models retain what users submit to improve training.
  • The stakes are higher: Once proprietary code or customer data is pasted into a public model, it can become part of that model and may be impossible to trace, recall, or delete.