{"id":230094,"date":"2026-06-11T11:44:00","date_gmt":"2026-06-11T15:44:00","guid":{"rendered":"https:\/\/testing.news-you-need.com\/index.php\/2026\/06\/11\/what-we-do-in-the-shadowswith-shadow-ai-the-growing-business-risk-of-unauthorized-artificial-intelligence-tools-mccarter-english-llp\/"},"modified":"2026-06-11T12:10:38","modified_gmt":"2026-06-11T16:10:38","slug":"what-we-do-in-the-shadowswith-shadow-ai-the-growing-business-risk-of-unauthorized-artificial-intelligence-tools-mccarter-english-llp","status":"publish","type":"post","link":"https:\/\/testing.news-you-need.com\/index.php\/2026\/06\/11\/what-we-do-in-the-shadowswith-shadow-ai-the-growing-business-risk-of-unauthorized-artificial-intelligence-tools-mccarter-english-llp\/","title":{"rendered":"What We Do in the Shadows\u2026with Shadow AI: The Growing Business Risk of Unauthorized Artificial Intelligence Tools | McCarter &#038; English, LLP"},"content":{"rendered":"<p><a href=\"https:\/\/www.jdsupra.com\/legalnews\/what-we-do-in-the-shadows-with-shadow-1944452\/\">What We Do in the Shadows\u2026with Shadow AI: The Growing Business Risk of Unauthorized Artificial Intelligence Tools | McCarter &#038; English, LLP<\/a><\/p>\n<p><a href=\"https:\/\/www.jdsupra.com\/legalnews\/what-we-do-in-the-shadows-with-shadow-1944452\/\">https:\/\/www.jdsupra.com\/legalnews\/what-we-do-in-the-shadows-with-shadow-1944452\/<\/a><\/p>\n<p>Publish Date: <a href=\"publish_date]\">2026-06-11 11:44:00<\/a><\/p>\n<p>Source Domain: <a href=\"www.jdsupra.com\">www.jdsupra.com<\/a><\/p>\n<p>Here&#8217;s a summary of the article in an unordered list with 6 key points:<\/p>\n<ul>\n<li>\n<p><strong>Emerging AI Use Among Employees<\/strong>: Many employers are implementing AI in their operations while some employees may use unauthorized AI tools without company policies in place, which can lead to unintended risks.<\/p>\n<\/li>\n<li>\n<p><strong>Shadow AI Risks<\/strong>: Employees using &#8220;Shadow AI&#8221; can lead to significant compliance and mitigation risks, especially if they use unsanctioned tools that do not meet privacy and security requirements.<\/p>\n<\/li>\n<li>\n<p><strong>Case Study: Community Bank Incident<\/strong>: The Community Bank reported a cybersecurity incident where nonpublic customer information was processed using an unauthorized AI tool, leading to regulatory and mitigation actions at significant cost and negative publicity.<\/p>\n<\/li>\n<li>\n<p><strong>Potential Enforcement, Litigation and Security Risks<\/strong>: The unauthorized use of nonpublic data on AI platforms can trigger a range of legal and compliance risks, including fines, penalties, lawsuits, and violations of various privacy laws and government requirements.<\/p>\n<\/li>\n<li>\n<p><strong>Governance and Training Requirements<\/strong>: Businesses need to establish secure, controlled AI governance frameworks involving IT, legal, and compliance teams, and ensure employees are well informed and trained on approved AI tool usage.<\/p>\n<\/li>\n<li>\n<p><strong>Incident Response and Vendor Policies<\/strong>: Companies should review incident response plans and update them to address AI-related data exposure, consider updating policies based on vendor guidelines, and ensure compliance with data privacy laws and regulations.<\/p>\n<\/li>\n<\/ul>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What We Do in the Shadows\u2026with Shadow AI: The Growing Business Risk of Unauthorized Artificial&#8230;<\/p>\n","protected":false},"author":1,"featured_media":230095,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/jdsupra-static.s3.amazonaws.com\/profile-images\/og.13905_60.jpg","fifu_image_alt":"","footnotes":""},"categories":[14],"tags":[20],"class_list":["post-230094","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","tag-artificial-intelligence"],"_links":{"self":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/230094"}],"collection":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/comments?post=230094"}],"version-history":[{"count":1,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/230094\/revisions"}],"predecessor-version":[{"id":230096,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/230094\/revisions\/230096"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/media\/230095"}],"wp:attachment":[{"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/media?parent=230094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/categories?post=230094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/testing.news-you-need.com\/index.php\/wp-json\/wp\/v2\/tags?post=230094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}