Shadow AI Identified as Biggest EU AI Act Compliance Risk

Summary

Shadow AI — the unauthorized or untracked use of AI tools and models by employees outside of sanctioned IT governance — is being flagged as the most significant compliance risk for organizations subject to the EU AI Act. The article highlights that as the EU AI Act's enforcement provisions take effect, enterprises that lack visibility into which AI systems are being used across their organizations face substantial regulatory exposure, including potential fines and reputational harm. The challen