Generative AI Guardrails: How to Address Shadow AI

The report examines the growing challenge of “shadow AI” in organizations—unsanctioned use of generative AI tools—and its security, governance, legal, and operational implications. It compiles industry insights and guidance, urging leaders to gain visibility into sanctioned and unsanctioned AI usage and spending, establish data classification and AI policies, train employees, and leverage CASB solutions (e.g., Netskope, Zscaler) to manage GenAI access, while emphasizing that broader governance, process, and oversight are required beyond tooling alone.