Shadow AI Explained: What It Is & How to Find It | Kovrr

Shadow AI describes AI tools and capabilities used inside organizations without formal approval or governance. The report outlines categories (consumer tools, embedded AI, developer/research models, vendor-embedded AI), common hiding places, four main cost categories (data/privacy, regulatory, security incidents, operational/reputational), drivers of rapid adoption, and recommended responses: continuous discovery, risk-based classification, proportionate governance, and integration with vendor risk tooling (promoted solution: Kovrr).