Shadow AI Puts Client Data at Risk of GDPR Fines
Employees using unapproved AI tools at work, known as shadow AI, expose agencies and their clients to regulatory fines by processing personal data outside sanctioned systems. Understanding the risk and establishing clear AI usage policies is now a core responsibility for agency owners.
Key Facts
Why does this matter for agencies?
What should agencies do?
Audit all AI tools currently in use across the team by surveying staff, then build an approved AI tool register with documented data processing agreements for each permitted tool.
Update client contracts and data processing agreements to reflect every AI tool used in service delivery, reviewed with legal counsel.
Implement a compliance workflow platform such as Vanta or Drata to document AI usage policies, track team acknowledgements, and surface gaps on an ongoing basis.
Run a scenario-based training session with the team covering specific examples of acceptable and unacceptable AI data usage.