Why shadow AI could be your biggest security blind spot

The report warns that unsanctioned use of generative and agentic AI (“shadow AI”) in enterprises creates significant security, privacy, and compliance risks, including inadvertent data leakage (PII, IP, code), vulnerable or malicious AI tools, biased outputs, and unauthorized automated actions. It cites rising BYO-AI adoption, regulatory exposure (GDPR/CCPA), and potential breach costs, and recommends shifting from deny-lists to governance: visibility into AI use, risk-based acceptable-use policies, vendor due diligence, secure identity controls for agents, user education, and network monitoring to mitigate data loss while enabling productivity.