What is Shadow AI and why should enterprises care?
Category:LLM Privacy & Compliance
Quick Answer
Shadow AI is employees using personal AI accounts for work without IT approval. 47% of enterprise GenAI users use personal accounts, 77% paste corporate data. Samsung engineers pasted proprietary source code into ChatGPT. Data becomes subject to training policies with no audit trail.
Detailed Answer
Shadow AI refers to employees using personal AI accounts (free ChatGPT, personal Claude) for work tasks — without IT approval or oversight.
The numbers:
- 47% of enterprise GenAI users use personal accounts
- 77% of users paste corporate data into AI tools
- Over 50% of pasted data is confidential
Real example: Samsung engineers pasted proprietary semiconductor source code, internal meeting notes, and hardware test data into ChatGPT using personal accounts.
Why its dangerous:
- No DPA in place
- Data is used for training by default
- No audit trail
- Potential GDPR violations
- Impossible to recall data
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