Shadow AI

Definition: Unauthorized or undiscovered artificial intelligence projects operating within corporate environments without formal approval or oversight, often leveraging generative AI tools for business tasks.

Risks:

Management Strategy (per ibm’s Jeff Crume):

  • Implement proactive monitoring to identify shadow AI instances
  • Establish clear AI usage policies with sanctioned alternatives
  • Foster cross-functional collaboration between business units and IT
  • Create transparent governance frameworks for AI adoption

Related Concepts:

2026 04 14 IBM Shadow ai

Source Notes