Shadow IT refers to any information technology resource — hardware, software, cloud services, or applications — used within an organization without the knowledge, approval, or management of the IT department. Shadow AI is a specific subset of Shadow IT focused on artificial intelligence tools.
Shadow IT has existed for decades, but the rise of cloud services and SaaS applications has dramatically increased its prevalence. Common examples include personal cloud storage (Dropbox, Google Drive), unauthorized messaging apps, personal email for work, unapproved project management tools, and now AI services like ChatGPT, Claude, and GitHub Copilot.
Risks of Shadow IT include: security vulnerabilities from unvetted software, data leakage through unmanaged channels, compliance violations from uncontrolled data processing, lack of visibility into organizational data flows, support and integration challenges, and increased attack surface.
Management strategies include: discovery tools that identify unauthorized services, clear policies with practical approval processes, providing approved alternatives that meet user needs, employee education on risks, network monitoring and access controls, and regular audits of technology usage. The goal is to balance security with enabling employee productivity.
