What is shadow AI, and how do you stop it?
Shadow AI is the AI tools your team uses without the business knowing. Here is how common it is and what to do about it.
By Inveil ·
Summary
Shadow AI means employees using AI tools the company has not approved or does not know about. Deloitte UK found 31% of workers use GenAI without their employer's knowledge, and about half have had no formal training. Banning it does not work, so the practical fix is to protect the data on the device and report usage per person.
Deloitte UK survey of 25,000 workers
Each dot is 1%
31%
of UK workers use GenAI at work without their employer's knowledge.
01
~50%
have had no formal training on using it safely.
02
66%
used AI despite believing policy prohibited it (Wakefield Research).
03
~70%
of enterprise workers use public AI via personal accounts (TELUS Digital).
Figures are as reported by the sources linked below.
What shadow AI means
Shadow AI is any use of an AI tool that the business has not approved or does not know about. A free chatbot on a personal account, a browser extension or a coding assistant that someone installed themselves all count.
How common it is
Deloitte UK surveyed 25,000 workers and found 31% use GenAI without their employer's knowledge, and about half have received no formal training on safe use. A TELUS Digital survey reported by CXM found nearly 70% of enterprise workers use public AI tools through personal accounts.
"The story here isn't that workers are using GenAI, it's that they are using it despite limited training, patchy guidance and, in some cases, without their employer's knowledge."
Why it is a data problem
Tools you do not know about are tools you cannot protect. Sensitive data can reach a consumer chatbot with no record anywhere in the business.
How to get control
- Accept that people will use AI, and say which tools are fine.
- Protect the data on the device, whichever tool the person picks.
- Block or redact sensitive data before it is sent.
- Report usage per person and per provider so you can see what is happening.
Where Inveil fits
Inveil runs on each machine, so it applies whichever AI tool the person uses, and it logs every block and redaction against the person it belongs to. One install per machine, with metrics in a single dashboard.
Inveil is data loss prevention (DLP) for AI. It checks prompts, files and screenshots on each employee's machine before they reach an AI tool, blocks or redacts sensitive data by your rules, and logs every event.
Common questions
- What is shadow AI?
- Shadow AI is the use of AI tools at work that the business has not approved or does not know about.
- How common is shadow AI?
- Deloitte UK found 31% of workers use GenAI without their employer's knowledge. In a Wakefield Research survey, 66% used AI tools despite believing policy prohibited it.
- Can you ban shadow AI?
- Bans are hard to enforce. Protecting the data on each device and reporting usage per person gives you control without relying on people to follow a rule they can hide breaking.
Sources:
More blogs
- Smaller companies are more likely to put customer data into public AI tools
- How to stop employees pasting customer data into ChatGPT
- How to stop screenshots with personal info going to AI tools
- What to put in an AI usage policy for a small business
- A Microsoft Purview alternative for small businesses protecting AI use
- AI data protection for small business: where to start
- How to stop employees leaking company data to AI: a practical guide
- How to stop API keys and secrets leaking into Cursor, Copilot and ChatGPT