Glossary Approach & collaboration

Shadow AI

What is shadow AI?

Shadow AI is employees using AI tools without the organisation knowing or approving it, often with company or client data.

Also known as shadow AIshadow ITunauthorised AI

It happens almost everywhere: someone pastes a client file into a free chatbot to get a summary faster. That saves time, but the data leaves the building and nobody knows which tools are running. The answer is workable AI governance, not a ban.

Banning rarely works; people find a workaround. Better is a register of what is used, a clear AI policy and good business tools as an alternative.

Read more in our piece on shadow AI.

Last updated: 20 October 2026

Relatedterms

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All terms

Approach & collaborationAI policyAn AI policy records how an organisation uses AI: which tools are allowed, which data must never go into them, where a person checks and who owns it.Approach & collaborationAI literacyAI literacy is your employees’ ability to understand AI, use it sensibly, and assess the results critically; since the AI Act it is also a legal obligation.Strategy & implementationAI ActThe AI Act is the European law that sets rules for developing and using AI, with stricter requirements the more high-risk an application is.Approach & collaborationProof of Concept (PoC)A proof of concept is a small, fast version of an AI solution that proves the idea works on real data, before you invest in a full build.

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