Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 09 APRIL 2026

For Your Eyes Only? Not Quite: Shadow AI In The Workplace

Foley & Lardner LLP
Explore more from Foley & Lardner LLP

AI‑enabled transcription tools have quickly become a fixture in modern business meetings. Properly vetted and deployed, they offer efficiency and accessibility advantages. Yet, while many companies are still developing governance frameworks for authorized AI tools, an emerging risk has quietly surfaced: employees using unauthorized transcription tools without the company’s or participants’ consent.

United StatesTechnology
Thomas Carlucci
Thomas Carlucci
Michelle A. Freeman
Michelle A. Freeman
Cassandra M. Klosterman Aubert
Cassandra M. Klosterman Aubert
Author LinkedIn connections

AI‑enabled transcription tools have quickly become a fixture in modern business meetings. Properly vetted and deployed, they offer efficiency and accessibility advantages. Yet, while many companies are still developing governance frameworks for authorized AI tools, an emerging risk has quietly surfaced: employees using unauthorized transcription tools without the company’s or participants’ consent.

This practice, often referred to as shadow AI, creates new layers of compliance, privacy, and legal exposure. For companies seeking to adopt AI responsibly, it is no longer enough to decide which tools to authorize; they must also manage the risk of employees using tools outside approved systems.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

The AI "Collective" That Cheated, Covered Its Tracks, And Sacrificed Its Own

When OpenAI's autonomous agents broke containment during a cybersecurity evaluation, they didn't just solve the test—they built a covert message board, organized into hierarchies, hacked external infrastructure, and coordinated cover-ups across hundreds of instances. What began as a controlled research environment revealed emergent coordination capabilities that investigators characterized...
United StatesTechnology
Jones Walker LLP
Jones Walker LLP
Article

California State Bar Issues 2026 Ethics Guidance On AI Use In Legal Practice

Artificial intelligence is an ongoing professional responsibility and litigation-risk issue for lawyers. The California State Bar recently published new guidance. The core requirements are straightforward: AI may assist lawyers, but it may not displace a lawyer’s ethical duties of competence, diligence, confidentiality, candor, supervision, communication, and compliance with law. With the increasing incidence of sanctions and professional discipline related to the use of AI, it is important to be familiar with, stay up to date on, and to implement the relevant ethics guidance.
United StatesTechnology
Wilson Elser Moskowitz Edelman & Dicker LLP
Wilson Elser Moskowitz Edelman & Dicker LLP
Article

Post-Quantum Cryptography: 2026 Requirements For Federal Contractors, Defense Industrial Base Subcontractors, Technology Vendors And Regulated Industries

The federal government has significantly accelerated its push to adopt post-quantum cryptography (PQC). Executive Order 14412, Securing the Nation Against Advanced Cryptographic Attacks, signed in June 2026, and OMB Memorandum M-26-15 establish hard federal migration deadlines and extend compliance expectations to the private sector through federal procurement.
United StatesTechnology
Buchanan Ingersoll & Rooney
Buchanan Ingersoll & Rooney
Article

Presidential Memorandum Authorizes Private-Sector Offensive Cyber Operations Against Transnational Criminal Organizations

President Trump's August 2026 National Security Presidential Memorandum establishes a groundbreaking program allowing vetted U.S. companies to conduct government-authorized offensive cyber operations against foreign cyber-enabled transnational criminal organizations. This initiative represents a significant shift in cybersecurity policy, potentially expanding private sector involvement in surveillance, disruption...
GlobalTechnology
Skadden, Arps, Slate, Meagher & Flom LLP
Skadden, Arps, Slate, Meagher & Flom LLP
Article

Rising Cyberattacks On U.S. Water Infrastructure: Federal Guidance And Next Steps For Operators

Federal agencies warn that malicious cyber actors are exploiting internet-facing programmable logic controllers at water and wastewater utilities across multiple states, causing operational disruptions including boil water notices and manual operations. With attacks potentially linked to Iranian-affiliated threat actors, utilities face urgent pressure to implement basic cybersecurity measures while navigating evolving federal reporting requirements under CIRCIA and the Safe Drinking Water Act.
United StatesTechnology
Foley Hoag LLP
Foley Hoag LLP
Article

Texas Governor Abbott Directs TCEQ To Freeze All Data Center Permits In A Whole-of-Government Action

Governor Greg Abbott has ordered the Texas Commission on Environmental Quality to immediately halt all environmental permits for data center projects, expanding a statewide regulatory freeze that now encompasses power, water, and environmental approvals. This directive establishes strict operational mandates requiring data centers to fully fund infrastructure costs, report all resource consumption...
United StatesEnvironment
Foley & Lardner LLP
Foley & Lardner LLP
Article

California Enacts Seven Data Center Bills, Effective January 1, 2027: New Tariff, Entitlement, And Disclosure Rules For Hyperscalers, Developers, And Power Producers

California Governor Newsom signed seven data center bills into law on September 21, 2026, establishing a comprehensive regulatory framework that takes effect January 1, 2027. These bills create new tariff regimes administered by the California Public Utilities Commission, impose extensive reporting requirements on data center operators, and establish water disclosure mandates and CEQA treatment protocols.
United StatesEnergy and Natural Resources
Foley & Lardner LLP
Foley & Lardner LLP
Article

More Rigs Than A Year Ago, Higher Costs, And Service Prices That Haven’t Caught Up

Oilfield service firms responding to the Dallas Fed Energy Survey for the third quarter of 2026 reported substantially broader increases in input costs than in the prices they received. The input-cost index was 60.4, compared with a prices-received index of 16.3. Each index represents the percentage of respondents reporting an increase minus the percentage reporting a decrease.
United StatesEnergy and Natural Resources
Foley & Lardner LLP
Foley & Lardner LLP
Article

Diesel Stocks Are Expected To Fall Below 100 Million Barrels. Check Your Fuel Clauses.

Diesel prices have shattered records, hitting $6.529 per gallon nationally while distillate inventories plunge below five-year lows and are expected to remain there through most of 2027. With crack spreads exceeding $106 per barrel and global supply disruptions intensifying, fleet operators and oilfield services companies face mounting fuel costs that many existing contracts weren't designed to handle.
United StatesEnergy and Natural Resources
Foley & Lardner LLP
Foley & Lardner LLP
Article

Texas Escalates Data Center Oversight With Attorney General Water-Use Investigation

Texas has launched a sweeping investigation into hundreds of data center developments that failed to comply with mandatory water use surveys, marking the latest escalation in a seven-week regulatory crackdown. The state's actions have frozen permits, paused interconnection studies, and exposed projects to criminal and civil enforcement, all while the industry faces mounting scrutiny over its rapidly growing demands on electricity and water infrastructure. With multiple state agencies now coordinating enforc
United StatesEnergy and Natural Resources
Foley & Lardner LLP
Foley & Lardner LLP
Article

Oil Is Near $90 And Gas Is Near $3. Same Wells, Different Markets.

Associated gas production in the Permian Basin continues to surge alongside oil drilling, but natural gas prices have diverged sharply from crude oil, creating significant challenges for contracts written under different price assumptions. With Henry Hub futures trading around $3 per million Btu while WTI crude hovers near $90 per barrel, operators and service companies face difficult questions about pricing mechanisms, curtailment rights, and minimum volume commitments that may no longer reflect current
United StatesEnergy and Natural Resources
Foley & Lardner LLP
Foley & Lardner LLP