Definition
Shadow AI is the AI version of shadow IT. It usually starts with good intentions: people find a tool that saves time and use it before the company has a policy or an approved alternative. The risks are data leaving the company, unvetted outputs in customer work, and compliance gaps.
Banning AI rarely works; usage moves to personal devices. Organisations that reduce shadow AI usually combine a clear policy, an approved tool that is genuinely good, training in AI literacy and visibility of what is being used.