Yes, You Have Shadow AI. This Is How You Fix It.

About half of your employees use personal AI apps to perform work. Departments bypass IT and Security because the approved path is slower than the unapproved one. 

Key findings:

The middle ground CIOs are looking for:

Centralized AI is safer, but too slow. Decentralized AI is fast, but breeds shadow IT and audit exposure. Both governance models depend on the same asset: a curated AI service catalog with tiered ownership. 

Stand up the catalog in 60 days:

Tier ownership to risk:

Hard limits for regulated data:

Sensitive data (e.g., CUI, PHI, PII) must stay on Tier 1. Department-level purchasing of generative AI for regulated data creates contract breach risk and audit failure under CMMC, HIPAA, PCI, and SOC 2. Central logging is the audit artifact.

What CIOs and CISOs must do:

Treat shadow AI as an operational opportunity. CIOs who write policy spend months. CIOs who ship a catalog do it in weeks. 

Want to Go Deeper?

This is just the starting point. For a closer look at the strategies and data behind it, flip through our full guide in the Resources section, built for a quick read and packed with the details we couldn’t fit here.

Clarity over jargon. Substance over spin. Integrity, always. ​