Shadow AI: Managing the Security Risks of Unsanctioned AI Tools | UpGuard

This report describes "Shadow AI": unsanctioned use of AI tools by employees that creates visibility gaps and risks including data leakage, regulatory noncompliance, intellectual property exposure, and potential malware or malicious extensions. It explains why shadow AI spreads, why traditional asset management fails to detect it, and recommends user-level monitoring, network and browser activity analysis, cataloging and risk-rating tools, adaptive policies, and ongoing employee education to safely enable and govern AI usage.