Shadow AI refers to the use of AI software by a company’s employees without the approval and/or knowledge of the IT department.
AI tools such as ChatGPT from OpenAI, Gemini from Google, and Claude from Anthropic offer convenience for a company’s employees. With chat functions, image generation and editing, and other useful AI features, it is now easy to get help with challenges in the workplace. However, as soon as internal company information is entered or uploaded, this can also pose a risk for the employer.
How does shadow AI arise in companies?
There are many reasons for the emergence of shadow AI. Employees are constantly looking for ways to make their everyday work easier, and the media presence of generative AI makes it particularly easy and obvious today to no longer solve challenges alone.
In addition, many companies have not yet clearly communicated whether AI software may be used and, if so, under what conditions.
Ultimately, however, slow approval processes or a lack of more privacy-friendly alternatives may also be reasons why employees use ChatGPT without permission, for example.
What are the risks?
As tempting as the efficiency gains may be, shadow AI carries significant risks. First and foremost is data protection. If confidential company data or personal information is entered into external AI tools, it may leave the protected company domain. This can violate the GDPR and lead to severe penalties.
There is also a risk of security breaches. Unauthorized tools are not monitored by the IT department, which means that malware or data leaks can go unnoticed. The quality and reliability of AI outputs is also problematic. Employees without appropriate training cannot recognize misinformation (known as “hallucinations”) from AI and may incorporate it into important decisions.
How companies can tackle shadow AI
The key lies not in strict prohibition, but in smart AI governance. Companies should seek dialogue with their employees and understand the needs behind the use of shadow AI. These can often be met by providing approved, secure AI tools.
A clear AI policy is essential. It should specify which tools are permitted, how sensitive data should be handled, and what training employees will receive. Transparent communication builds trust and prevents employees from secretly going their own way.
Monitoring tools can help identify the actual use of AI applications within a company. This is not about surveillance, but rather risk management and the ability to intervene in a timely manner.
Detecting Shadow AI
Various providers already offer an initial overview of potentially existing shadow AI. Bechtle’s darknet scan can also reveal which users of your company domain have created accounts on selected AI websites. Although this does not cover all AI websites, especially smaller, unknown ones, it does give you an initial impression of the possible extent of the problem in your company.
Technical prevention
Finally, it is also possible to use firewall or web filter settings to either completely block access to known AI websites or at least technically prevent file uploads (possibly only of selected files).
AI as a shared responsibility
Shadow AI is a symptom of digital transformation. It shows that employees are thinking innovatively and looking for solutions, which is fundamentally positive. However, the challenge for companies is to balance this enthusiasm for innovation with security and compliance.
Successful AI integration requires a culture of trust and collaboration. When companies involve their employees in their AI strategy, offer training, and provide secure alternatives, shadow AI becomes a controlled, productive use of artificial intelligence.
Image source: Unsplash