What is Shadow AI?
Shadow AI is the use of AI tools, models or features by employees or teams without the knowledge or approval of the organisation's IT, security or governance functions. Examples include pasting company data into a public chatbot or enabling an AI feature in a SaaS product without review.
It matters because unapproved tools can expose confidential or personal data and create obligations nobody is tracking. Discovery usually combines surveys, procurement and network or expense data, and a route to promote useful tools into the governed inventory with a proper review rather than simply banning them.