Emma, a project manager at a mid sized tech firm, needs to create a presentation overnight. To save time, she uploads confidential client data into a free AI powered slide builder she found online. By morning, the deck is ready. But without knowing it, she may have just sent her company’s sensitive data into the wild.
That’s Shadow AI in a nutshell, the use of AI tools and services in an organization without approval, oversight or security checks.
These tools are often :
Now imagine this happening across departments - HR, marketing, logistics, even finance. The risk adds up fast.
When people use unapproved AI tools, they’re usually just trying to save time not cause harm. But that doesn’t reduce the danger. Especially when these tools:
Let’s say your procurement team uses AI to summarize contracts with vendors. If those contracts contain pricing or supply timelines, and the AI tool retains that data, your supply chain intelligence could be exposed.
Or worse: shared.
Add regulatory pressure from GDPR, SOC 2, or ISO 27001, and the business impact can be massive.
At a fast growing e-commerce startup, the operations team started using an AI chatbot to troubleshoot delivery bottlenecks. Without approval, they uploaded CSV files filled with supplier names, delivery timelines, and warehouse inventory levels.
A few weeks later, a partner flagged that their proprietary shipping method was being mirrored by a competitor.
It turned out the AI tool had been training on uploaded content. The data wasn’t just analyzed, it was stored and reused.
One quick fix tool created a slow-burn disaster.
It’s not usually malicious. Shadow AI seeps in because :
Here’s how you can protect your organization while keeping innovation alive:
Work with your IT and legal teams to create a list of safe, compliant tools employees can use. Update it often.
Make these fun and useful, show real scenarios, give examples, and explain what not to do.
Use monitoring tools like:
These tools can flag unapproved AI usage in real time.
If employees don’t have to jump through 10 hoops to get a tool approved, they won’t go rogue.
Create a simple, 1 click request form for new AI tools and respond quickly.
You might already have Shadow AI creeping into your systems and not even know it.
Whether you’re in IT, legal, or operations, now’s the time to assess:
We help companies audit Shadow AI usage, assess compliance gaps, and set up secure AI governance that still empowers teams to move fast.
Connect with Evvo to explore your enterprise's current blind spots and what to do next.