Shadow AI
AI tools employees use for work without the company knowing or approving, often with company data pasted into personal accounts.
People paste contracts into a consumer chatbot, connect a meeting recorder to their calendar, or build a small app with an AI builder on a personal plan. The risks are data used for training or kept indefinitely, no record of what left the company, and tools nobody can switch off when someone leaves. Banning it rarely works; offering an approved tool with company login usually does.
Related terms
- Shadow IT (shadow AI): Apps, AI tools and accounts that employees use or build for work without the IT team knowing or managing them.
- Zero data retention (ZDR): An arrangement in which an AI provider does not store your prompts and outputs after returning the response, beyond what is needed to serve it.
- AI literacy (AI Act Article 4): The AI Act duty, in force since February 2, 2025, for companies using AI to ensure their staff understand it well enough to use it.
