Managing the Risks of Shadow AI

Generative AI is rapidly becoming part of everyday work in state and local government — often faster than security policies and oversight can keep up. As employees adopt new AI tools and AI-powered features appear inside common SaaS applications, many agencies are facing a growing challenge: "shadow AI," or unmanaged AI use happening outside approved governance and controls.

This paper explores how public sector leaders can strike the right balance between enabling innovation and protecting sensitive data. The paper outlines why visibility is the foundation of effective AI governance, how adaptive Zero Trust security models can reduce risk in real time, and what practical steps agencies can take to establish guardrails without slowing productivity.

Learn how government organizations can manage the invisible risks of shadow AI while still unlocking AI’s potential for faster service delivery, empowered workers and more responsive operations.