AI Law - International Review of Artificial Intelligence LawCC BY-NC-SA Commercial Licence ISSN 3035-5451
G. Giappichelli Editore

10/03/2025 - Understanding Shadow AI in Local Governments (USA)

argument: Notizie/News - Digital Governance

Source: StateTech Magazine

The article from StateTech Magazine explores the growing use of "shadow AI" — artificial intelligence systems deployed by state and local government agencies without proper oversight or compliance with regulations. Shadow AI often involves AI tools purchased or developed outside of formal IT processes, leading to significant risks related to data privacy, transparency, and accountability.

Key risks include potential violations of data protection laws and the difficulty of ensuring that shadow AI systems are unbiased and fair. The article highlights the importance of establishing clear policies for AI procurement, including mandatory audits and transparency requirements to prevent unauthorized AI deployments. Legal experts argue that comprehensive regulatory frameworks are needed to manage shadow AI risks effectively and protect citizens' rights. The discussion underscores the urgency for public sector entities to adopt governance standards that align with evolving AI regulations at the state and federal levels.