Unsanctioned AI tools or workflows adopted outside approved channels—creates compliance, security, and support gaps even when productivity feels higher.
Shadow AI is the AI analogue of shadow IT: personal subscriptions, browser tools, or local models processing proprietary data without review. Training and data classification policies fail when the easiest path routes around them.
Constructive response
Channel demand into pilots, fast approvals for low-risk tiers, and better approved tools—punitive-only programs often worsen hiding.