In today's fast-paced digital work environment, artificial intelligence (AI) is becoming a powerful enabler—but it also introduces new and often overlooked risks. One of the emerging trends we’re seeing at ADS Consulting Group is the rise of Shadow AI.
Just like “Shadow IT” refers to technology used without the knowledge or approval of an organization’s IT department, Shadow AI involves employees using AI tools under the radar—often with the best intentions. But even well-meaning employees can inadvertently put your company at risk.
What is Shadow AI?
Shadow AI refers to the practice of employees using generative AI tools (such as ChatGPT, Midjourney, or open-source AI plugins) without oversight, guidance, or approval from their employer. This can happen when internal tools don’t meet their needs, or they’re simply unaware of the risks.
The issue? These tools often process sensitive data in ways that aren’t secure or compliant. Worse yet, some AI plugins or models downloaded from open-source platforms may contain malware or Trojan horses.
A Cautionary Tale from Disney
Take this true story: a Disney employee downloaded a plugin from GitHub for an AI image-generation tool called ComfyUI. GitHub is a legitimate platform, but unfortunately, the plugin contained hidden malware.
Once installed, the malware accessed the employee’s password manager, compromised his identity, and infiltrated Disney’s internal Slack channels. The result? A terabyte of internal company data was stolen. Not only did the employee lose his job, but he also became a victim of identity theft.
While the employee likely didn’t act maliciously, the consequences were severe—for both him and the company.
The Risks of Shadow AI
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Data Leakage: Inputting confidential data (e.g., proprietary code, financials) into public AI platforms may expose it to others or make it retrievable through future prompts.
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Security Threats: Downloaded AI tools or plugins may be infected with malware or act as backdoors.
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Policy Violations: Using unsanctioned tools may breach internal security or compliance policies.
What Can Organizations Do?
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Create an Acceptable Use Policy (AUP)
Make it clear: employees should not install or use AI tools without approval. Spell out what’s allowed—and what’s not. -
Invest in End-User Training
Teach staff how to spot risky tools, avoid suspicious downloads, and understand the dangers of entering sensitive data into public AI systems. -
Restrict Access Where Necessary
Consider blocking access to unauthorized AI platforms and tools, or monitor usage with company-managed filters. -
Enforce Data Sensitivity Rules
A good rule of thumb: If you wouldn’t post it publicly, don’t paste it into ChatGPT.
AI is a Double-Edged Sword
AI can be a game-changer—but without proper controls, it can just as easily backfire. The key is to use it responsibly. Encourage innovation but pair it with education, policy, and oversight.
At ADS Consulting Group, we’re helping organizations strike that balance. Whether you're building out an AI strategy or tightening your cybersecurity defenses, we’re here to help you do it right.
Need help securing your AI ecosystem?
Contact ADS Consulting Group for a risk assessment and customized compliance solutions.