
Katarina HoffmannA CISO's guide to discovering shadow AI across the enterprise. This playbook covers how to surface...
A CISO's guide to discovering shadow AI across the enterprise. This playbook covers how to surface every AI tool in use, from web apps to coding agents, using a combination of policy, network analysis, and endpoint governance tools like Bifrost Edge.
The widespread adoption of generative AI has created a significant blind spot for security leaders: employees are using hundreds of ungoverned AI tools for daily work. A recent report from the analyst firm Enterprise Technology Research (ETR) highlights that while 70% of organizations are increasing their AI budgets, many lack the visibility to manage the associated risks. This "shadow AI" ecosystem, spanning everything from web-based chatbots to integrated development environment (IDE) plugins and desktop applications, introduces unmanaged pathways for data exfiltration, compliance violations, and intellectual property loss.
For Chief Information Security Officers (CISOs), the first step toward managing this risk is creating a comprehensive inventory of every AI tool already in use. An open-source AI gateway like Bifrost can centralize and govern known AI traffic, but it cannot see the tools that bypass it. This playbook provides a structured approach to surfacing that hidden usage and bringing it under a unified governance framework.
Shadow AI thrives because it is decentralized and user-driven. Unlike traditional software that requires formal procurement and deployment, modern AI tools are often free, browser-based, or installed with a single click. This creates several discovery challenges.
The initial goal is to build a baseline understanding of AI usage without deploying heavy-handed blocking, which can drive usage further into the shadows.
Start with the human layer. Anonymous surveys can provide valuable, honest feedback on which tools teams find most useful and for what purposes. This is also the time to review and update the company's acceptable use policy to explicitly address generative AI. The NIST AI Risk Management Framework (AI RMF 1.0) provides a solid foundation for developing these policies, emphasizing the need to "Map, Measure, and Manage" AI risks.
While not a complete solution, analyzing DNS requests and proxy logs can reveal connections to the most common AI service domains. Create a list of top-level domains for services like OpenAI, Anthropic, Google AI, and others. This method will catch the low-hanging fruit but will miss desktop applications that may use different endpoints or less obvious services that bundle AI capabilities.
Manual methods and network analysis provide an incomplete picture. To get a definitive, real-time inventory, CISOs need a solution that provides visibility directly on the endpoint, where the tools are being used. This is where an endpoint governance agent becomes critical.
The Bifrost AI gateway provides the central control plane for setting policy, and Bifrost Edge extends that policy to every employee machine. This combination moves a security program from reactive analysis to proactive governance.
An endpoint agent like Bifrost Edge is deployed to every company-managed device via an existing mobile device management (MDM) solution like Jamf, Intune, or Kandji. Once installed, it operates transparently to the user, inspecting traffic and identifying connections to known AI services and, crucially, discovering new ones.
Key capabilities for discovery include:
The output of this stage is not just a list of domains but a rich, fleet-wide catalog of every AI application and MCP server in use, tied to specific devices and users. A centralized admin dashboard provides a single view to see what is running where. This inventory becomes the foundation for a risk-based governance strategy.
With a comprehensive inventory in hand, security teams can move from discovery to control. The goal is not necessarily to block every tool but to enforce consistent security and compliance policies on the tools that are approved for use.
Using the discovered inventory, CISOs can implement a formal approval workflow for all AI tools.
This combined approach is the most effective way to manage AI risk at scale. The Bifrost AI gateway acts as the central policy engine and enforcement point for all known and sanctioned AI traffic. Bifrost Edge acts as the discovery and enforcement agent on the endpoint, ensuring that even previously unknown "shadow AI" is either blocked or brought into compliance with the gateway's policies. This creates a closed-loop system where nothing is left ungoverned.
Surfacing the AI tools already in use is the foundational step in a modern AI governance program. By moving from manual spot-checks to a continuous, automated discovery and enforcement model, CISOs can enable their organizations to adopt AI safely and effectively. This approach turns a major security blind spot into a well-managed and visible component of the enterprise software ecosystem.
Teams looking to implement such a playbook can start by evaluating how an endpoint governance solution can provide the necessary visibility. The information needed to manage AI risk is already on the network and endpoints; the key is having the right tools to surface it. Teams evaluating AI gateways and endpoint governance can request a Bifrost demo to see this model in action.