Shadow AI: The Hidden Risk in Your Organization

The first step is to avoid using unauthorized AI tools for business tasks.
Today everyone is looking for a way to work smarter. Many employees have discovered that Artificial Intelligence (AI) can help them write emails, fix computer code, or analyze large reports in seconds.
However, this speed comes with a hidden danger known as Shadow AI.
What Exactly is Shadow AI?
Shadow AI occurs when employees use AI tools for work tasks without the permission or knowledge of the company’s IT department. It is very similar to “Shadow IT,” where people use their own apps or cloud storage for work, but AI moves much faster and handles much more sensitive information.
Because these tools are often free and easy to use, many employees do not realize they are doing anything wrong. They simply see a helpful tool that makes their job easier.
Why is Shadow AI a Major Problem?
When an employee uses an unmanaged AI tool, the company loses control over its data. Here are the main risks:
- Data Leaks: If a worker pastes a private customer list or a secret financial report into a public AI, that data is no longer private.
- AI Training: Many AI models “learn” from the information people give them. This means your company’s secrets could eventually show up in an answer the AI gives to someone else.
- Security Gaps: Employees may accidentally leave “secrets”—like passwords or internal keys—inside AI-built applications that are visible to the public.
The “Streamlit” Warning
A recent investigation by UpGuard highlighted just how dangerous this can be. They looked at Streamlit, a popular platform used to build AI web apps. They found that many developers were accidentally leaking sensitive “secrets,” such as database passwords and API keys, because they didn’t set up the security correctly.
UpGuard called this the “tip of the iceberg”. This means that for every leak we find, there are likely thousands more hidden risks waiting to be discovered inside companies.
How to Move Forward with “Radical Realism”
As we look at 2026, we must practice Radical Realism. This means accepting that AI is here to stay, but we must be honest about the risks. You cannot simply ban AI, because employees will find a way to use it anyway. Instead, you need a clear strategy to manage it.
Companies must:
- Identify which AI tools are currently being used.
- Create clear rules about what data can—and cannot—be shared with AI.
- Use professional security tools to watch for accidental data leaks.
How CREAPLUS Can Help
Navigating the world of AI security can feel overwhelming. At CREAPLUS, our experts specialize in helping organizations stay safe while remaining innovative. We can help you design a modern AI strategy that includes the right policies and technical implementations to protect your business.
To make this possible, we recommend UpGuard as the perfect tool for your security stack. UpGuard helps you monitor your entire “attack surface” and alerts you immediately if Shadow AI or human error leads to a data breach.
Would you like CREAPLUS to help you audit your AI risks and set up a secure strategy for the future? Contact us today.