Reclaiming Control: Strategies for CISOs to Tackle Shadow AI in 2026

Generative AI (GenAI) tools like OpenAI’s ChatGPT and Microsoft Copilot are increasingly accessible, leading to significant concerns about “shadow AI”—unauthorized use within enterprises. Without proper governance and IT oversight, this practice can result in data breaches, compliance failures, and reputational damage. A survey revealed that over 38% of employees share sensitive data with AI without employer consent, often due to a lack of training in safe usage. Risks associated with shadow AI include functional failures, operational vulnerabilities, and legal implications. Implementing strategies such as monitoring AI usage, establishing formal governance programs, and educating employees are essential for mitigating these risks. Key questions executives should consider include employee awareness of shadow AI risks and existing governance policies. As regulations around AI evolve, businesses must adapt to ensure compliance while maximizing the benefits of these powerful tools. Overall, while eliminating shadow AI is challenging, robust strategies can enhance safety and compliance in AI utilization.

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