Shadow AI

When staff paste company data into an AI tool

Entering data into an AI tool you have not approved can be a breach in itself. Find out what went in, where it went and whether it concerns people.

Last reviewed against legislation.gov.uk, National Cyber Security Centre and OWASP GenAI Security Project. Sources

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The case

Samsung in 2023

CSO Online reported on a Samsung memo saying that in April 2023 engineers had put internal source code into ChatGPT by mistake [10]. According to the report, the memo gave no detail of the code itself, nor of whether outsiders inspected it [10]. Samsung called its restriction on generative AI temporary, until security measures were ready [10].

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Scale

How common the gap is

IBM's 2025 research covered 600 organisations. Of those, 63% had no AI governance policies for managing AI or preventing shadow AI [6]. It also reported that heavy shadow AI use added USD 670,000 to the average global cost of a breach [6].

Response

Steps after a paste

  1. 1

    Ask the person what was entered, into which tool, on which account and when. Do this without blame, or the next case will be hidden.
  2. 2

    Establish whether it included personal data, credentials or confidential material.
  3. 3

    Check the tool's settings, retention and training terms for the account used, and ask the supplier what it can delete.
  4. 4

    Rotate any credentials that were pasted.
  5. 5

    Decide whether this is a reportable personal data breach and record the outcome [1].

Fix

What to change afterwards

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Say what may be entered

OWASP's advice is to educate users against entering anything sensitive, and to publish plain rules on how long data is kept and when it is deleted [5]. A written rule beats a verbal one.

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Offer an approved route

A ban alone left Samsung describing its own restriction as temporary [10]. Staff will turn to the tools anyway unless a sanctioned alternative exists.

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Know what is in use

The NCSC wants leaders to understand how their data and software reach them through suppliers [3]. Start with a list of AI tools in use, including the ones nobody approved.

Keep the first report easy

If owning up to a mistake is awkward, you will hear about it late. Provide a short route to the incident lead and mention it in training.

See the response plan for where this fits.

How CyPro can help

Need a hand working through this?

Finding out whether an incident reaches you is one job. Checking your own systems, tightening access and briefing the board are several more. CyPro's responders and consultants can take any of them on.

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Talk to a specialist

Worried this affects you?

When data has leaked through an AI tool, its logs or its storage, the early decisions shape what you must report and to whom. An incident response team helps you contain the exposure, establish what was involved and prepare your notifications.