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Will your organisation be reshaped by Shadow AI?

AI is already a natural part of everyday life in many workplaces, but its use often takes place out of sight. Shadow AI is growing rapidly, creating both new opportunities and serious risks. The question is how to take control.

6 minutes read

Octavio Harén

CISO & Business Area Manager Cybersecurity, Conscia Sweden

Will your organisation be reshaped by Shadow AI? – featured image

In conversations with organisations, one question keeps coming up: how do we use AI safely and strategically, starting right now? It’s both exciting and unsettling. AI is already being used at scale – whether for coding, analysing data or supporting daily tasks – but often without oversight. And without visibility, it’s hard to steer in the right direction.

How Shadow AI spreads inside organisations without detection

It often starts with a simple prompt. A developer tests a piece of code in an AI chatbot to get some help. Someone else uploads internal documents to generate summaries. A third person analyses customer data using a cloud‑based AI tool.

But what happens to the information afterwards? We know that some AI services can store user inputs. We know that AI tools can, in some cases, reproduce code fragments from other users. And we know that confidential information has leaked in this way – not through attacks, but through everyday use. This is no longer hypothetical. Shadow AI is a growing reality.

AI has already entered the organisation – not as a future vision, but as part of daily work. Employees use AI tools to work faster, make better decisions and solve tasks and problems. It doesn’t happen through grand strategies or AI initiatives, but through curiosity, creativity and individual shortcuts. That’s where the potential lies.

But it is also where the risk grows. As AI becomes a natural part of working life, the gap widens between how the technology is used and how it is governed.

What Shadow AI is and why it matters for your organisation

Shadow AI refers to the use of AI tools – such as generative services, code assistants or analytics platforms – without the IT department’s knowledge or approval. It’s AI usage happening out of sight. Often driven by good intentions, but without transparency or control.

The phenomenon resembles classic Shadow IT. The difference is that AI doesn’t just handle data. It analyses, suggests and acts – and when AI‑driven decisions are made without oversight, the consequences can be greater than we have time to recognise.

Why does Shadow AI happen?

Because AI works. And because it’s accessible.

When internal tools fall short or are blocked, people find their own ways forward. They open a web service, download an app or connect to an open model. What we’re seeing is a clear shift: Bring Your Own AI. Employees bring their own tools into the workplace – often without IT knowing. Not because they want to bypass rules, but because they’re trying to solve their tasks as effectively as they can. It’s not malicious intent. It’s innovation in the wrong context.

No oversight, no governance

Most leadership teams today have little or no visibility into which AI tools are actually being used across the organisation. That makes it impossible to:

  • identify valuable initiatives worth supporting
  • build the right safeguards around the right data
  • ensure compliance with laws and contractual obligations
  • develop a coherent AI strategy

Without visibility, you’re navigating in the dark. And the darkness is growing.

Four Shadow AI risks you should take seriously

  1. Information leakage. AI services may store, reuse or share user data outside your control.
  2. Compliance risks. GDPR, confidentiality agreements and information‑handling requirements are put at risk when the wrong data ends up on the wrong platform.
  3. Faulty decisions. AI without transparency can generate answers that look correct but are based on inaccurate, biased or hallucinated information.
  4. New attack surfaces. Unauthorised AI tools may contain vulnerabilities or create new entry points for attackers.

These are not hypothetical scenarios. They are happening in organisations right now.

Why AI agents mark the next phase of enterprise automation

So far, AI has mainly responded to our questions. The next phase is about AI beginning to act. AI agents are making their way into everyday tools – systems that not only generate text but automate workflows, make decisions and interact with other systems. Independently.

As AI becomes more capable, we also need to strengthen our own ability to:

  • define roles and mandates
  • set technical and ethical boundaries
  • ensure traceability, control and accountability

This isn’t something we can deal with afterwards. We need to start now, before Shadow AI becomes too widespread.

Why technical safeguards are essential for safe AI adoption

Policies are important. Training is essential. But without technical support, these often remain theoretical.

We need solutions that complement the human and organisational effort – technology that can:

  • identify and classify AI usage
  • prevent data leakage in real time
  • log, monitor and alert when something deviates
  • offer approved alternatives and safe testing environments

This is not about stopping progress, but about creating structures that make it safe. Technology that supports, not restricts. Technology that enables, without letting go of control.

Why AI agents mark the next phase of enterprise automation

So far, AI has mainly responded to our questions. The next phase is about AI beginning to act. AI agents are making their way into everyday tools – systems that not only generate text but automate workflows, make decisions and interact with other systems. Independently.

As AI becomes more capable, we also need to strengthen our own ability to:

  • define roles and mandates
  • set technical and ethical boundaries
  • ensure traceability, control and accountability

This isn’t something we can deal with afterwards. We need to start now, before Shadow AI becomes too widespread.

Why technical safeguards are essential for safe AI adoption

Policies are important. Training is essential. But without technical support, these often remain theoretical.

We need solutions that complement the human and organisational effort – technology that can:

  • identify and classify AI usage
  • prevent data leakage in real time
  • log, monitor and alert when something deviates
  • offer approved alternatives and safe testing environments

This is not about stopping progress, but about creating structures that make it safe. Technology that supports, not restricts. Technology that enables, without letting go of control.

How to get started – 5 tips

Get visibility.

  1. Start with a clear picture of reality. Map traffic and usage.
  2. Set the ground rules. Create an AI policy that is easy to understand and possible to follow up.
  3. Offer alternatives. Internal AI services, approved third‑party tools, sandboxes – make it easy to do the right thing.
  4. Educate and listen. Employees don’t want to cause harm; they want to solve problems. Involve them.
  5. Use frameworks. ISO/IEC 42001 provides a solid foundation for AI governance that balances technology, ethics and business.

Why managing Shadow AI unlocks sustainable AI innovation

Shadow AI is not an anomaly. It is a signal. A signal of need, of initiative and of what’s coming next.

We see it clearly in behaviour: employees are bringing their own AI tools into their work. A Bring Your Own AI phenomenon that shows the usage cannot be stopped – only guided.

Organisations that combine technology, governance and culture will not only reduce their risks. They will accelerate their AI value – and do so in a way that lasts.

The question is not whether Shadow AI exists in your organisation. The question is: what will you do about it?

About the author

Octavio Harén

CISO & Business Area Manager Cybersecurity, Conscia Sweden

Octavio Harén is the Head of Cybersecurity and CISO at Conscia Sweden. He is responsible for Conscia Sweden's internal information security programme and for leading strategic cybersecurity initiatives, focusing on developing solutions and offerings that address customers' most complex security challenges. With over ten years of experience in IT infrastructure and cybersecurity, Octavio has established himself as a leading expert in the industry.

Octavio Harén

CISO & Business Area Manager Cybersecurity, Conscia Sweden

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