How Enterprises Can Mitigate the Quiet Threat of Shadow AI

C-Suite Strategies for AI Risk Management, Data Protection Rashmi Ramesh (rashmiramesh_) • March 28, 2025

Shadow artificial intelligence has shifted from being an outlier to a workplace staple, bringing risks of data breaches, regulatory violations and expanded attack surface on corporate networks.

See Also: Capturing the cybersecurity dividend

"The biggest risk with shadow AI is that these applications have not undergone the rigorous security analysis that approved AI tools require," said Melissa Ruzzi, director of AI at AppOmni. "Some may train models using company data, fail to comply with necessary regulations, or store information in insecure environments - blind spots that create unknown security vulnerabilities."

Unlike traditional shadow IT, shadow AI doesn't just introduce unapproved software: it consumes corporate data to function. Enterprise-grade AI tools such as Microsoft Copilot operate within corporate environments with compliance, data governance and security controls in place. Shadow AI operates outside these boundaries.

Employees ...