Shadow AI: How Legal and IT Departments Should Prevent This EU AI Act Compliance Problem?

What is Shadow AI and why it has become a critical problem for EU AI Act compliance in 2026

Shadow AI is the unauthorized use of artificial intelligence tools by employees within organizations, without knowledge or approval from IT and Legal departments. In 2026, this phenomenon has become one of the main corporate concerns, especially after the implementation of the EU AI Act and stricter international regulations.

The problem arises when employees use ChatGPT, Claude, Gemini or other AI tools to process confidential company information, customer data or sensitive documents. This data can be stored on AI companies' servers, creating involuntary leaks and unauthorized exposure of critical information.

According to 2026 research, more than 78% of European companies reported cases of Shadow AI in their corporate environments. Usage has grown exponentially over the past two years, driven by the popularization of these tools and ease of access. Many employees don't even realize the privacy risks involved.

The situation has worsened because AI tools have become so intuitive that anyone can use them without technical training. This created a dangerous gap between technological convenience and corporate security, requiring a strategic approach coordinated between IT and Legal departments to ensure EU AI Act compliance.

The main privacy and security risks of Shadow AI under EU AI Act

Shadow AI represents one of the greatest threats to corporate privacy and EU AI Act compliance in 2026. When employees use unauthorized AI tools, they frequently input sensitive company data without realizing the implications.

Confidential information such as:

• Contracts
• Customer data
• Business strategies

can be exposed to third parties without any control or audit.

Data Leakage Risks

Data leakage is just the tip of the iceberg. Many free or non-corporate AI tools use the information entered to train their models, creating a permanent risk of exposure. Data that seems secure today could be accessed or reconstructed in the future through reverse engineering or security breaches.

Visibility and Control Issues

Lack of visibility is another critical problem. IT departments cannot monitor or control what is being shared, creating blind spots in corporate security. This makes compliance with regulations like the EU AI Act and GDPR difficult, which require total control over personal data flow.

Additionally, different AI tools have distinct and not always transparent privacy policies. Employees may inadvertently accept terms that grant broad rights over entered data, creating unforeseen legal obligations for the company under EU AI Act requirements.

How to identify unauthorized AI use in your organization

Identifying Shadow AI in your organization requires a systematic approach and adequate monitoring tools. In 2026, companies have several strategies available to detect unauthorized use of artificial intelligence while maintaining EU AI Act compliance.

Network Traffic Monitoring

Start by conducting regular network traffic audits to identify suspicious connections to external AI services. Monitoring tools can detect when employees access platforms like ChatGPT, Claude or other non-approved solutions during work hours.

Employee Surveys and Communication

Implement anonymous surveys with employees to understand which AI tools are being used informally. Often, employees don't realize they're violating security policies and share this information when asked in a non-punitive manner.

System Log Analysis

Analyze application and corporate system logs looking for unusual data usage patterns. Shadow AI frequently leaves digital traces, such as:

• Massive information downloads
• Database access outside normal patterns

Transparency Channels

Establish communication channels where employees can voluntarily report the use of unauthorized tools. Create a transparency environment where Shadow AI discovery is seen as an improvement opportunity, not grounds for punishment. This collaborative approach has proven more effective in 2026 than purely restrictive methods, especially for EU AI Act compliance.

Legal department strategies for AI governance under EU AI Act

The legal department plays a fundamental role in creating robust frameworks for AI governance and EU AI Act compliance in 2026.

Policy Development

The first essential strategy is developing clear policies for artificial intelligence tool usage, establishing specific guidelines about which applications are permitted and in which contexts.

Due Diligence Processes

Implementing due diligence processes for new AI technologies represents another crucial front. This includes evaluating:

• Privacy risks
• Regulatory compliance
• Contractual impacts

before adopting any solution. Legal must work closely with suppliers to ensure adequate contractual clauses about data protection and responsibilities under EU AI Act requirements.

Continuous Training and Committees

Continuous training of legal teams on AI legal implications has become indispensable. Professionals need to understand the nuances of EU AI Act applied to artificial intelligence, as well as emerging sector-specific regulations.

Creating multidisciplinary committees, involving legal, IT and business areas, facilitates informed decision-making.

Compliance Audits

Finally, establishing regular compliance audits allows identifying gaps in governance and adjusting strategies as necessary. Documenting all processes and decisions related to AI use creates valuable history to demonstrate EU AI Act compliance in potential regulatory investigations.

Technical measures IT should implement to control Shadow AI

Implementing effective technical controls is fundamental for IT departments to maintain governance over AI tool usage in the organization while ensuring EU AI Act compliance. In 2026, companies that adopted proactive monitoring strategies significantly reduced risks associated with Shadow AI.

Network Monitoring Systems

The first step is establishing a network traffic monitoring system that automatically identifies connections to unauthorized AI platforms. Modern DLP (Data Loss Prevention) tools already include specific detection for generative AI APIs, allowing real-time alerts when sensitive data is sent to external services.

Corporate Proxies and Filtering

Implementing corporate proxies with intelligent filtering represents another crucial protection layer. These systems can block or redirect access attempts to non-approved AI tools, offering secure corporate alternatives to users.

Endpoint Control

Endpoint control has also evolved considerably. MDM (Mobile Device Management) solutions now detect AI application installations on corporate devices, sending automatic notifications to the security team.

Internal AI Tool Catalog

Finally, creating an internal catalog of approved AI tools, with integrated SSO (Single Sign-On), facilitates adoption of secure solutions by employees. When official alternatives are more convenient than unauthorized ones, the natural tendency is to follow established policies that ensure EU AI Act compliance.

Legal and IT collaboration framework to mitigate risks

Creating a structured collaboration framework between Legal and IT departments represents the fundamental basis for effectively combating Shadow AI while ensuring EU AI Act compliance. In 2026, the most successful organizations in mitigating these risks are those that established clear communication protocols and shared responsibilities.

Joint Committee Structure

The framework should begin with forming a joint committee that meets monthly to evaluate emerging AI risks. This committee should include:

• Senior representatives from both departments
• Managers from operational areas where AI tools are most used

Clear role definition is crucial: while Legal evaluates regulatory and contractual implications under EU AI Act, IT focuses on technical security and data governance.

Joint Approval Process

An essential element is implementing a joint approval process for any new AI tool. This includes creating standardized forms that capture information about:

• Data processing
• Involved jurisdictions
• Security measures

2026 trends show that companies with this type of structured process reduce Shadow AI-related incidents by up to 70%.

Incident Response Protocols

Finally, the framework should include incident response protocols that allow coordinated action when unauthorized tools are discovered. Regular and transparent communication between departments ensures both remain aligned regarding EU AI Act compliance and security objectives.

Essential policies and training for employees

Implementing clear policies and comprehensive training programs represents the fundamental foundation for preventing Shadow AI and ensuring EU AI Act compliance in 2026. Organizations must establish specific guidelines that define when, how and which AI tools can be used in the corporate environment.

Policy Components

Effective policies include:

• Creating a pre-approved list of AI tools
• Procedures for requesting new technologies
• Clear protocols for handling sensitive data under EU AI Act requirements

It's essential that these guidelines are communicated accessibly, avoiding technical jargon that might generate confusion among employees.

Training Programs

Regular employee training should address specific Shadow AI risks, demonstrating through practical cases how unauthorized use can compromise confidential data and violate EU AI Act provisions. Awareness programs should be updated frequently, considering that new AI tools constantly emerge in the market.

Communication and Approval Channels

Creating open communication channels allows employees to report unauthorized tool usage without fear of punishment, transforming discovery into learning opportunities. Additionally, establishing a simplified process for requesting approval of new tools significantly reduces the temptation to use unauthorized solutions.

The success of these initiatives depends on leadership engagement and integrating these practices into organizational culture, ensuring that Shadow AI prevention and EU AI Act compliance become shared responsibilities for the entire team.

How to build a culture of responsible AI use in the company

Building a culture of responsible AI use and EU AI Act compliance in 2026 requires more than policies and technology - it demands a fundamental change in organizational mindset. True transformation happens when each employee understands that data security and regulatory compliance are collective responsibilities, not just the IT department's.

Continuous Awareness Programs

The first step is establishing continuous awareness programs that go beyond one-time training. Leading companies in 2026 implement:

• Monthly update sessions about emerging Shadow AI risks
• Practical workshops on ethical AI tool use
• Simulations of real data breach scenarios under EU AI Act framework

Executive Leadership Commitment

Executive leadership must demonstrate visible commitment to these practices. When CEOs and directors rigorously follow approved AI policies and publicly share their experiences with authorized tools, they create a positive cascade effect throughout the organization.

Recognition and Gamification

Implementing recognition systems for employees who identify and report inappropriate AI use also strengthens this culture. Gamification of good practices and creating security ambassadors in each department are proven effective strategies for EU AI Act compliance.

Continuous Journey

The culture of responsible AI use is not a destination, but a continuous journey. Start today by evaluating your company's current practices and developing a structured plan to eliminate Shadow AI risks while ensuring EU AI Act compliance. Your organization's future depends on the decisions you make now.