Definition

What is shadow AI?

Shadow AI is AI tooling employees adopt without IT or finance approval — personal ChatGPT accounts, unsanctioned Copilot seats, API keys on corporate cards. It creates untracked spend, security exposure, and duplicate tools. Spendassay detects it from SSO and OAuth grants plus corporate-card spend, then prices the overlap and unsanctioned seats as findings.

Every figure Spendassay publishes about shadow ai carries a proof level saying how much guessing sits behind it, and opens to show the rows it was computed from. The full method is on the methodology page.

Related definitions

The full glossary · the AI cost management guide · cost per outcome

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