What is shadow AI and how do we manage it?

ForceMX · Updated 7 October 2026

Short answer

Shadow AI is staff using AI tools the company has not approved, often personal ChatGPT or browser extensions, sometimes with company or customer data. Banning AI rarely works. Instead, provide an approved tool on a business plan, publish a short AI policy, train staff, and review which AI apps have access to company accounts.

Why it happens

Staff find AI useful and will use it whether or not the company provides it. If the only option is a personal account, that is what they will use. The risk is not AI itself but company data flowing into tools nobody controls, and AI apps connected to work email or drives with broad permissions.

How to bring it into the open

Ask staff which AI tools they use, without blame. Pick an approved tool and give everyone access. In your Microsoft 365 or Google Workspace admin, review third-party apps connected to company accounts and remove risky ones. Publish a short policy on data and review, and train people on it.

What is shadow AI and how do we manage it?

Why it happens

How to bring it into the open

Related questions