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Glossary

Shadow AI

What is shadow AI?

Shadow AI is AI tools and agents that employees use for work without the company’s knowledge or approval.

Why it matters

Shadow AI can send company or customer data to unapproved providers and leaves no record of what was done. Knowing which AI tools people actually use is the first step to governing them.

Example

A marketer connects a personal AI agent to the CRM to draft emails, and customer data starts flowing to an AI provider that isn’t on the approved vendor list.

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