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Shadow AI

Shadow AI is AI use by employees outside the organisation's view: pasting customer data into a free chatbot, having contracts summarised in a tool nobody approved.

It happens in almost every company, with the best intentions: it saves time. The risk is in the data: personal data and trade secrets end up with a party without a processing agreement, sometimes outside the EU, and sometimes used to train models.

Banning does not work, offering an alternative does. An approved assistant or agent on your own platform, with EU hosting and clear agreements, removes the reason for shadow AI and gives you back control. That is also the core of AI literacy under the AI Act.

Want to know what this means for your business?

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