Shadow AI Risk

Shadow AI refers to AI tools used within organizations without official approval or security oversight, creating significant data leakage and compliance risks. Employees routinely send sensitive company data to consumer-grade AI services like ChatGPT, Claude, and GitHub Copilot without IT knowledge, effectively causing uncontrolled data exfiltration. The risks are especially severe in regulated industries such as healthcare, financial services, and legal, where sharing protected data with unapproved AI services violates regulations like HIPAA and GLBA.