Shadow AI

Shadow AI refers to employees using AI tools that haven't been officially approved or sanctioned by their organization — often because approved options don't exist or are too slow to be made available. Similar to shadow IT (employees using Dropbox, Gmail, or other personal tools for work), shadow AI is a signal that demand outpaces supply. For organizations, shadow AI creates data security and compliance risks.

The right response is usually to accelerate the official adoption program, not to prohibit the tools — prohibition is rarely effective and often counterproductive.