Partner Resources

Shadow AI: The Next Generation of Shadow IT

By Steve Taylor

06/12/2025

Partner Content Provided by BDO USA, LLP
AI

In today's digital environment, the emergence of Shadow AI presents both opportunities and challenges for organizations. Shadow AI involves unapproved or unsanctioned AI models, tools, and agents commonly used to enhance productivity and expedite manual tasks. However, shadow AI also introduces significant risks and governance concerns that need to be addressed proactively.

Shadow AI encompasses AI applications that operate outside the purview of official IT and security protocols. While these tools can offer immediate benefits in terms of efficiency and innovation, they pose substantial risks including data leakage, privacy violations, and unauthorized access. The lack of visibility into these AI tools means that IT and security teams are often unaware of their use, creating vulnerabilities and potential legal liabilities.

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