How Health Systems are Tackling the Rise of ‘Shadow AI’

Shadow AI—the use of unauthorized or unmonitored AI tools within organizations—is an escalating concern, particularly in sectors like healthcare where data privacy and compliance are critical.This phenomenon arises when vendors or employees deploy AI tools without the knowledge or approval of an organization’s IT or compliance departments.“Many applications now include AI in some form,” Jason Adams, MD, Director of Data and Analytics Strategy at UC Davis Health told Becker’s. “Often, even the individuals requesting the technology aren’t aware that AI is embedded in the product. It’s an ongoing challenge.”

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A study by Prompt Security found that companies typically have 67 generative AI tools operating within their systems—90% of which lack proper licensing or approval. In response, UC Davis Health has built structured pathways to identify and evaluate most AI-enabled tools before they go live.



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