The hidden risks of shadow AI
The use of shadow AI can create risks that organizations may struggle to identify and manage, potentially resulting in breaches and security incidents. For example:
- Sensitive information may be exposed
Providing shadow AI access to company or customer data likely increases the risk of data breaches, intellectual property loss, and failure to meet regulatory requirements.
- Organizations can lose visibility and control of data
Employees who transfer sensitive or proprietary information to consumer AI services will likely reduce the organization’s visibility and control over that information. This is because that information may be stored, retained, or used to improve the service – outside established security and governance arrangements – unless specific privacy controls are in place.
- New opportunities for attackers
AI agents are complex pieces of software that can have critical security vulnerabilities. If an attacker successfully exploits a vulnerability, they can gain access to the same data, services, and privileges that the agent has legitimate access to.
Attackers are highly likely to use agents with looser guardrails to exploit any vulnerabilities or misconfigurations in the wider corporate IT system.
Source: UK NCSC (Cyber) (7 September 2026)
