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Shadow AI discovery: find the AI tools employees already use

Shadow AI is AI adopted without IT or security review. It is rarely malicious: people want to do their jobs faster. Discovery is about visibility, not punishment — and the best outcome is moving useful tools into a governed state.

Last reviewed: September 2026

Why shadow AI is different from shadow IT

Shadow IT used to mean unsanctioned SaaS apps. Shadow AI has two properties that raise the stakes. The data flowing in is often the most sensitive data people work with — they ask AI for help with the hard, confidential tasks. And AI tools increasingly connect to other systems through OAuth, so a single click can give a third-party AI app ongoing access to a mailbox or drive.

Seven discovery sources

1. OAuth grants in your identity platform

Google Workspace and Microsoft Entra ID both record third-party apps users have authorized and the scopes granted. Export the list, filter for AI-related apps, and note the scopes — mail read, drive read/write, and calendar are the most sensitive. This is usually the highest-value source.

2. SSO sign-in logs

Sanctioned apps appear here; unsanctioned apps using "Sign in with Google/Microsoft" often do too.

3. Expense and card data

Search expense reports and corporate card transactions for AI vendors. Individual subscriptions expensed as "software" are common.

4. Browser extensions

Managed browsers can report installed extensions. AI writing and meeting assistants often run as extensions with permission to read every page the user visits.

5. Network and DNS data

Secure web gateways and DNS filters can show traffic to AI domains. Use it to measure volume, not to read content.

6. Code and secrets scanning

Search repositories for AI provider SDKs and API keys. Keys found in code are both a discovery signal and an immediate credential finding.

7. Ask people

A short, non-punitive survey per department — "Which AI tools do you use for work, and for what?" — surfaces tools no log will show, especially on personal devices.

Triage what you find

SituationAction
Useful tool, business plan availableReview the vendor, move users to an administered plan, approve
Useful tool, no acceptable termsProvide an approved alternative; set a migration date; revoke grants
Tool connected with broad OAuth scopesRevoke or narrow scopes; restrict user consent
Sensitive data already sharedAssess exposure with privacy/legal; request deletion from the vendor if possible
API key found in codeRotate immediately; move to secrets manager
Personal account used for workMigrate to the approved workspace; have the user delete work content

Prevent recurrence

  • Publish an AI acceptable-use policy that names approved tools.
  • Offer an approved tool for the most common use cases.
  • Restrict user consent to third-party apps so new OAuth grants need admin approval.
  • Create a lightweight request process for new AI tools with a fast turnaround.
  • Repeat discovery quarterly.

Record everything you find in your AI inventory. The FlashTower Scan and AI Inventory give you a structured place to keep it, with risk rules applied to each system.

Communicating with employees

How you run discovery shapes whether people cooperate next time. Announce the effort before you start, explain that the goal is to provide approved tools and protect data, and say explicitly that there will be no penalty for disclosing current use. Share what you found in aggregate, and what you are doing about it — especially the tools you are approving.

Pair discovery with a fast path to approval. If the average request takes three months, employees will keep using unapproved tools. A target of one to two weeks for low-risk tools is realistic with a tiered vendor review.

Measuring progress

  • Number of AI apps with active OAuth grants, and the share that are approved.
  • Number of users on approved AI tools versus total AI users identified.
  • Number of AI API keys found in code (target: zero).
  • Time from new-tool request to decision.

Reading OAuth scopes

When you export third-party app grants, the scopes tell you what each AI app can actually do. Prioritize review by scope, not by app name:

Scope patternWhat it allowsPriority
Full mail access (read, send, delete)Read every email; send as the userHighest
Drive / OneDrive / SharePoint read-writeRead and change any file the user can accessHighest
Mail read-onlyRead every email, including confidential threadsHigh
Drive read-onlyRead every file the user can accessHigh
CalendarMeeting titles, attendees, and often dial-in links and notesMedium
Basic profile / email addressSign-in onlyLow

An AI meeting assistant with calendar access and a note-taker that joins calls can collect a great deal of confidential information even though its scopes look modest. Consider what the app does with the access, not only the scope string.

Frequently asked questions

Should we block all unapproved AI tools?

Blocking without an approved alternative tends to move use to personal devices. Most organizations get better results by approving a managed tool, restricting OAuth consent, and monitoring.

Is monitoring AI usage legal?

Monitoring rules vary by jurisdiction and employment context. Focus on metadata (which tools, how much) rather than content, and consult counsel and HR before deploying monitoring.

What counts as shadow AI?

Any AI tool, AI feature, or AI agent used for work without review by IT, security, or the relevant owner. That includes personal accounts on approved products, browser extensions with AI features, AI features switched on inside existing software, and automations built by business users that call AI models.

How often should shadow AI discovery run?

Run a full discovery once to establish a baseline, then repeat the OAuth-grant and expense checks quarterly. Once user consent to third-party apps is restricted, new AI grants appear as admin approval requests instead, which makes ongoing discovery much easier.