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GLOSSARY · S

What Is Shadow AI?

DEFINITION

Shadow AI is when AI tools, models or services are used within an organization without the correct oversight. Employees may use chatbots, browser plug-ins, code generation tools or other automation tools available in the public to help make their tasks faster without considering any risks. This can cause issues with data privacy, IP, compliance, security and operations. This can be avoided with having clear policies, providing authorized tools, limiting access, training and having monitoring tools.

Why is managing Shadow AI important?

  • Data Security: Minimizes the risk of sensitive data being shared with unapproved tools.
  • Compliance: Ensures correct use of AI tools.
  • Awareness: Increases awareness of tools being used within departments.
  • Governance: Provides approved ways of using AI.
  • Productivity: Allows employees to utilize AI safely without limiting genuine innovation.

Use cases

  • Identify unapproved AI tools being used
  • Provide approved tools and policies for using AI within the enterprise.
  • Train teams to handle sensitive data safely.
  • Evaluate the risks associated with AI within departments.
  • Implement controls for AI tools within browsers and third-party tools.

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