Shadow AI Explained: What It Is, Where It Hides, and What It Costs
Shadow AI is the term for AI tools, models, and capabilities that operate within an organization without formal approval, oversight, or governance. It is the enterprise AI equivalent of shadow IT, which is the unauthorized software and cloud services that proliferated as employees found faster ways to get work done than waiting for IT procurement cycles. The difference is that the consequences of unmanaged AI are considerably more significant than those of unmanaged software.