AI is part of everyday work, but much of that use is happening quietly. A recent Business Insider article references a KPMG study that concluded that more than half of workers admit they keep their AI use hidden from their managers. For small businesses with limited security resources, this creates a blind spot. Employees rely on AI because it helps them work faster, but without oversight, these tools can pull sensitive data into places it was never meant to go.This behind-the-scenes use of AI, often called Shadow AI is becoming one of the most common sources of operational and compliance risk. Most staff aren’t acting with bad intentions; they’re just reaching for tools that make their work easier. The issue is that unapproved AI tools do not comply with your security standards, retain data in ways you do not understand, and may expose information you are obligated to protect.To regain visibility and reduce risk, small businesses need tools that highlight where AI is being used, what information is being shared, and whether those interactions could put the organization at risk.
Common AI Tools in the Workplace
Shadow AI often begins with tools employees already use daily—tools that blend into workflows so naturally that leaders may not notice them. According to Lasso Security (2025) The most common categories include:General-purpose chatbots (ChatGPT, Gemini, Claude)
Content-generation platforms (Jasper, Copy.ai)
AI-enabled analytics inside dashboards or spreadsheets
Unapproved AI helpers inside CRM, marketing, or design tools
Why Small Businesses Need Shadow AI Detection Tools
- AI use often happens inside the browser. Traditional security tools don’t track what employees enter into AI chatbots or extensions.
- Data can leak instantly. A single prompt may unintentionally include personally identifiable information (PII) or internal documentation.
- AI spreads informally. Teams adopt new tools without IT oversight leading to inconsistent, ungoverned workflows.
Top Shadow AI Detection Tools for 2025
Based on insights from Superblocks (2025), Lasso Security (2025), and Josys (2025).1. Lasso Security — Best Overall for SMBs
Lasso focuses on identifying AI use in real time. Lasso monitors browser-based interactions, detects unapproved tools, and flags when sensitive information is entered into AI systems.Key Advantages:
- Real-time visibility into AI prompts
- Browser-level detection
- Built-in guardrails aligned to your policies
2. Nightfall AI — Best for Protecting Sensitive or Regulated Data
Nightfall specializes in identifying sensitive information—such as PHI, PII, credentials, financial data, or private client details—being inserted into AI tools.Key Advantages
- Monitors SAAS platforms, browsers, desktops, and endpoints
- Tracks sensitive information and redacts sensitive fields
- Detects and prevents uploads, copy and paste and screenprints into AI tools
3. Josys — Best for Unified Shadow IT + Shadow AI Discovery
Josy’s provides a consolidated inventory of all SaaS applications and AI-linked tools in use across the company. Many Shadow AI issues originate from unmanaged apps; Josys helps uncover these quickly.Key advantages:
- Strong discovery across departments
- Useful for reducing tool duplication
- Integrates with identity and device systems
4. Microsoft Purview provides a centralized approach to govern and protect sensitive data across Microsoft 365, Azure, and connected SaaS platforms.
It identifies and labels sensitive information across email, files, chats, etc. and flags unusual user activity like bulk downloads and transfers which can also surface shadow AI behaviours. It’s designed for organizations already using Microsoft tools.Advantages
- Works across multi-cloud and on-prem environments.
- Built-in integration with Microsoft 365, Teams, and Azure AD.
- Centralized governance
How Small Businesses Should Choose a Tool
When selecting a Shadow AI detection platform, SMBs should prioritize:- Browser-level monitoring (where most AI use happens)
- Sensitive-data detection for compliance or regulated industries
- Clear, non-technical reporting
- Quick deployment and low overhead
- Integration with acceptable-use and AI policies
Final Thoughts
Shadow AI is occurring in the workplace, and employees are using AI tools because they are effective, not because they intend to create risk. The responsibility falls on leaders to ensure those tools are used safely.Platforms like Lasso Security, Nightfall AI, Josys, and Microsoft Purview help small businesses regain visibility, and protect sensitive information, without slowing productivity.The goal isn’t to limit innovation—it’s to ensure AI enhances the business without exposing it.Resources
Ben, Gil. (2025, August 13). What is Shadow AI? Risks, Tools, and Best Practices for 2025. https://www.lasso.security/blog/what-is-shadow-ai?
Thompson, Polly. “Researchers Asked Almost 50,000 People How They Use AI. Over Half of Workers Said They Hide It From Their Bosses.” Business Insider, 28 April 2025, www.businessinsider.com/kpmg-trust-in-ai-study-2025-how-employees-use-ai-2025-4.
2025, August 12. Best Shadow IT Discovery Tools for 2025: Essential Guide for IT Leaders. https://www.josys.com/article/shadow-it-discovery-tools
2025, November 10). The 7 Best Shadow AI Detection Tools for Enterprises in 2025. Superblocks. https://www.superblocks.com/blog/shadow-ai-tools?
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