Addressing the Risk of Shadow AI in the Banking IT Environment The rapid adoption of artificial intelligence across banking operations has created an unprecedented challenge for IT and risk leadership: the emergence of Shadow AI. While banks invest billions in sanctioned AI initiatives, employees are simultaneously deploying unsanctioned AI tools, models, and APIs across the enterprise often without IT oversight, governance, or security controls. This parallel adoption of AI outside formal governance frameworks presents one of the most pressing operational and compliance risks facing financial institutions today. Shadow AI is not a theoretical concern. It manifests daily in your organization: data analysts using ChatGPT for financial forecasting, customer service teams deploying third-party chatbots without security reviews, traders employing generative AI for market analysis outside approved systems, and risk teams leveraging unvetted machine learning models for cred...