Shadow AI
The use of unauthorized or unvetted AI tools by employees within an organization, without IT or security team knowledge or approval. Similar to shadow IT but specific to AI tools.
Why It Matters
Shadow AI creates compliance, security, and data privacy risks. Employees using ChatGPT with confidential data is the most common form.
Example
Employees pasting proprietary code, customer data, or financial projections into ChatGPT for quick analysis — without realizing the data may be used for training.
Think of it like...
Like employees using personal email for work — convenient, but creates security and compliance risks that the organization cannot manage or even see.
Related Terms
AI Governance
The frameworks, policies, processes, and organizational structures that guide the responsible development, deployment, and monitoring of AI systems within organizations and across society.
Data Privacy
The right of individuals to control how their personal information is collected, used, stored, and shared. In AI, data privacy concerns arise from training data, user interactions, and model outputs.
Compliance
The process of ensuring AI systems meet regulatory requirements, industry standards, and organizational policies. AI compliance is becoming increasingly complex as regulations proliferate.
Responsible AI
An approach to developing and deploying AI that prioritizes ethical considerations, fairness, transparency, accountability, and societal benefit throughout the entire AI lifecycle.