Shadow IT (shadow AI)
Apps, AI tools and accounts that employees use or build for work without the IT team knowing or managing them.
With AI coding tools, people now build their own apps over a weekend: a quote calculator, a CRM export, a report generator. They usually solve a real problem, and they also hold company data behind a shared password or none, on a personal account. Banning them rarely works; the practical answer is to bring the useful ones under company login, backups and an owner.
Related terms
- SSO (single sign-on): Logging in once with a company account (Microsoft, Google, Okta) to use many apps, managed centrally by IT.
- Microsoft Entra ID (formerly Azure AD): Microsoft’s cloud identity service behind Microsoft 365 logins, renamed from Azure Active Directory in 2023.
- GDPR: The EU regulation on personal data: lawful basis, minimal data, user rights and breach reporting, for anyone handling EU residents’ data.
