Shadow AI means employees use AI tools for work without the company knowing or having approved them.
Example
Someone pastes confidential customer data into a private chatbot account to write a reply faster.
For pros
Risks include data leaks, breaches of GDPR and trade secrets, and unchecked results. Bans alone rarely work; approved tools, clear rules and training work better. The EU AI Act requires companies that use AI to take measures for their staff’s AI literacy (Art. 4).
