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Security & Compliance Glossary

Shadow AI

Shadow AI is the use of AI tools by employees without the organization's knowledge, approval, or oversight, the AI-era version of shadow IT. It most often looks like staff pasting sensitive data into public chatbots or wiring unsanctioned models into workflows. The risk is not the tools themselves but the absence of any control over what data reaches them and what comes back.

In practice

The first deliverable is visibility. You cannot govern or secure what you cannot see, so a shadow AI effort starts by discovering which tools and data flows already exist rather than by writing policy in the abstract.

From there it becomes a governance problem that an acceptable use policy and a short approved-tools list largely solve. Most leakage comes from convenience, so the durable fix is making the safe path the easy one.

// how traztech helps

traztech delivers a shadow AI audit for startups and growth-stage companies, led by a published security researcher.

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For a broader look at getting audit-ready, see our SOC 2 readiness work, or talk to a fractional CISO about building a program around it.

Where it comes up

Shadow AI surfaces the first time someone asks which AI tools the company actually uses and nobody can answer. By then staff have usually been feeding customer data, code, or contracts into public models for months. The starting point is a shadow AI audit.

The reflex to ban everything tends to drive the usage further underground. The workable response is an inventory, a short acceptable use policy, and sanctioned tools that are good enough that people do not need to go around them.

Shadow AI: common questions

Why is shadow AI a security problem?

Because data leaves your control without any record. Information pasted into a public model may be retained, used for training, or exposed, and you cannot assess a risk you do not know exists.

How do we get shadow AI under control?

Find out what is actually being used, publish a clear acceptable use policy, and provide sanctioned alternatives. Enforcement without a usable sanctioned option just hides the behaviour.

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Track record

Who is actually doing the work

5
Published CVEs, including a CVSS 9.1
Zero
Exceptions on a SOC 2 Type II built from nothing in-house

Published vulnerability research

Five published CVEs. CVE-2024-45163 (CVSS 9.1) is a flaw in the Mirai botnet itself, which gave defenders a way to shut down attacker infrastructure. CVE-2026-42626 takes HP ENVY 5000 printers offline from any unauthenticated device on the same network.

A SOC 2 Type II built from nothing

At Humera, a venture-backed US security company, Jacob built the compliance programme in-house from nothing: no report, no policies, no documented controls. It ended in a Type II attestation with zero exceptions.