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Glossary

What is Shadow AI?

AI applications, agents, models, MCP servers and browser or editor extensions that people in an organization use without the security team’s knowledge or approval. Shadow AI is the AI-era successor to shadow IT, with higher stakes: these tools read source code, documents and customer data, and increasingly act on the user’s behalf.

In depth

Shadow AI covers any AI use outside the organization’s approved, governed paths: a chatbot used with a personal account, a coding agent running with an individual API key, an MCP server a developer added to a local config file, an MCP config committed to a repository, or an AI browser extension. Some of it is visible on the network, as connections to model provider endpoints. Much of it is not. A local MCP server talks to its client over pipes and opens no socket, and a coding agent’s tool calls happen inside a process on the laptop. Finding shadow AI therefore takes several vantage points together: gateway traffic, network destinations attributed to the app that opened them, and an agent on the device that reads AI client configurations and detects installed AI tools.

Why it matters

You cannot govern what you cannot see. Policies, approvals and audit trails built on gateway traffic cover only the AI that goes through the gateway. Shadow AI is where data leaves without a record and where an unreviewed tool runs with a developer’s full privileges. It is also what an auditor finds when asking for an inventory of AI systems. Discovery turns shadow AI into a list of decisions: approve and route it through the gateway, or quarantine and block it.

Common use cases

  • Inventorying AI apps and agents installed across managed devices
  • Finding locally configured and repository-committed MCP servers
  • Attributing AI network destinations to the app that reached them
  • Quarantining unapproved local MCP servers until they are reviewed
  • Producing a complete AI systems inventory for audit

How Ferentin handles it

Ferentin is the trust layer for AI agents. The platform centralizes identity, policy enforcement and audit across LLMs, MCP servers and AI tools. Shadow AI is one of the primitives this trust layer is designed around. See the platform overview for how it fits into the service edge, control plane and observability plane.

Related terms

Local MCP Server (stdio)

An MCP server that an AI client launches as a subprocess on the user’s machine and talks to over standard input and output, rather than over the network. Local servers are configured in JSON files by developers or committed to repositories, run with the user’s own privileges and credentials, and never open a network connection for the protocol itself. That makes them invisible to proxies, secure web gateways and DNS filters: discovering and governing them requires an agent on the device that reads the client configuration.

AI Coding Agent Hooks

User-defined commands that AI coding tools such as Claude Code, Cursor, Codex and GitHub Copilot CLI run at points in their lifecycle: before a tool call, after a tool call, when a prompt is submitted or when a session starts. A hook can inspect the event and allow it, deny it or record it. Organizations deploy managed hooks to apply policy inside these tools, for example denying a tool call or scanning a prompt for sensitive data, because a coding agent running locally with its own credentials never passes through a network gateway.

Catalog

In AI infrastructure, a catalog is a centralized registry of available resources: AI clients (IDEs, copilots, chat interfaces), MCP servers (tool providers) and LLM providers with their available models. The catalog enables administrators to discover, organize and govern which resources are available to their organization, while giving users a self-service way to find and connect to approved AI services. A well-maintained catalog is foundational to AI governance, as it defines the boundary of what can be accessed and by whom.

AI Agent Governance

The set of policies, controls and monitoring practices that determine what AI agents are allowed to do within an organization. Governance includes defining which tools agents can access, what actions they can take, setting approval workflows and maintaining audit trails of all agent decisions.

MCP Gateway

A centralized control plane for Model Context Protocol traffic. An MCP gateway secures, manages and routes connections between AI agents and MCP servers, enforcing zero-trust access controls and providing visibility into every tool invocation.

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