In 2023, Samsung learned a difficult lesson about generative AI when engineers reportedly used ChatGPT to help debug code, optimize work, and summarize meeting content, as reported by BusinessWorld . This incident underscores the growing phenomenon of shadow AI, where employees use unauthorized AI tools without organizational oversight.

Shadow AI poses significant risks, including data leaks, compliance violations, and reliance on unverified outputs. Samsung's case illustrates how well-intentioned productivity gains can backfire when sensitive corporate information is fed into public AI models.

To counter shadow AI, experts recommend a governed path that includes clear policies, approved tools, and employee training. Organizations must balance innovation with security, ensuring that AI adoption is both productive and compliant.