Australian EnterpriseAI Index
GlossaryRisk

Shadow AI

Shadow AI refers to employees using consumer AI tools (public chatbots, browser extensions, unsanctioned SaaS AI features) to handle work tasks — often including sensitive data — without going through procurement, security review, or the organisation's AI Model Register. It is one of the most under-measured incident sources in enterprise AI because, by definition, it doesn't show up in official system logs.

Primarily affects

The Incidents dimension of the Australian Enterprise AI Index.

See where this shows up in the Index

The open methodology explains exactly how each dimension is scored and weighted.

Read the methodology

Related terms

Definitions are written for enterprise AI governance context, not a formal legal standard. Suggest a correction →