Shadow AI

Shadow AI is the unsanctioned use of any artificial intelligence (AI) tool or application by employees or end users without the formal approval or oversight of the information technology (IT) department. A common example of shadow AI is the unauthorized use of generative AI (gen AI) applications such as OpenAI’s ChatGPT to automate tasks like text editing and data analysis. Employees often turn to these tools to enhance productivity and expedite processes. However, since IT teams are unaware of these apps being used, employees can unknowingly expose the organization to significant risks concerning data security, compliance and the company’s reputation.