AI Glossary
What it means, why it matters to your business, and where it shows up in a real build decision.
In plain terms
Shadow AI is employees using AI tools that the organization has not approved or does not know about. Shadow AI is where most corporate data leaks happen. A ban rarely works; it just drives the behavior underground. Sanctioned tools that are good enough to use openly work better.
Shadow AI is the AI equivalent of employees using personal phones for work email. The behavior is understandable; the business has no visibility into what is being sent or stored.
A financial services firm finds its analysts have been pasting client data into a consumer AI tool for months. The tool's terms allow training on submitted data. The firm has a data breach under GDPR definitions with no way to recall it.
Assess shadow AI risk proactively. Survey which tools employees are already using and what data they are submitting. The answer shapes your approved tool policy and access controls.
Do not respond to shadow AI with a blanket ban and no alternatives. People use unauthorized tools because they are solving a real problem. Give them a sanctioned tool good enough to prefer over the unauthorized one.
Work with us
Tell us what's slowing you down and we'll show you where AI governance fits.
Work with us
Tell us what's not working in your business. We'll find the real problem and tell you exactly what it would take to fix it.