The Security Risk of Rampant Shadow AI

This report examines the growing threat of "shadow AI"—unsanctioned use of generative AI tools at work—and the consequent rise in sensitive data being entered into public AI services. It outlines the business and regulatory risks of data leakage and recommends securing data across its lifecycle through encryption and secure key management, data tokenization/obfuscation, role-based access controls, and robust governance to enable safe AI adoption.