Mitigating Risks of Shadow AI and Navigating Related SEC Disclosure Requirements (Cybersecurity and AI Law Report)
The surge in AI use has heightened cybersecurity risks, including shadow AI — the unauthorized use of AI tools or misuse of approved ones. As AI continues to reshape the cybersecurity landscape, public companies should be alert to the fact that shadow AI usage, if left unchecked, can create cybersecurity incidents that may require evaluation under applicable SEC cybersecurity disclosure rules.
This article in Cybersecurity and AI Law Report examines the SEC’s cybersecurity disclosure obligations and how organizations can mitigate the risks associated with shadow AI, with commentary from legal professionals, including Goodwin partner Kaitlin Betancourt.