Shadow AI

Unauthorised or unmanaged AI tools and services that employees use without formal IT approval or governance oversight, creating security, compliance, and operational risks for organisations. Shadow AI emerges when employees adopt consumer AI applications to solve work problems, often bypassing official procurement and security review processes. Businesses should treat shadow AI as valuable feedback revealing unmet workflow needs whilst implementing appropriate governance frameworks. Organisations can address shadow AI through approved AI tool catalogues, clear adoption processes, and policy-as-UX approaches that make compliant AI usage easier than workarounds. **See also:** Shadow AI Governance Assessment Tool