The Cloudcast Shadow AI
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Nov 19, 2025 Rohan Sathe, CEO and Co-Founder of Nightfall AI, shares his insights on the alarming rise of Shadow AI, where employees unknowingly expose sensitive data through AI tools. He highlights the differences between Shadow AI and traditional Shadow IT, emphasizing the rapid adoption of AI by workers. Rohan discusses the evolution of data loss prevention with AI technology, the importance of real-time monitoring, and the need for organizations to educate and implement controls against these risks. He also addresses the growing implications of agentic AI on data security.
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Shadow AI Defined And Its Risks
- Shadow AI is employees using external AI tools without organizational awareness, creating security and compliance risks.
- That data may be used to train external models or leak regulated information like PHI or SSNs.
Adoption Is Faster And Broader
- Shadow AI spreads faster than historical shadow IT because anyone who can type can adopt it instantly.
- Agentic tools amplify adoption by running automated workflows with minimal user interaction.
Widespread Employee AI Use
- Enterprise AI usage exploded, with Rohan estimating over 80% of employees using some form of AI.
- Rapid consumer-level growth made Shadow AI pervasive across organizations.