Shadow AI Is Rewriting Cyber Disclosure Risk

Amy Worley discusses how Shadow artificial intelligence (AI) is creating a new category of enterprise risk that can trigger breach notifications, regulatory scrutiny, and litigation even when no hacker is involved. Using a recent example from SEC Chair Paul Atkins, she explains why organizations must rethink traditional definitions of cybersecurity incidents and prepare for a regulatory landscape that is becoming more complex. She highlights the growing importance of AI governance, third-party risk management, and cross-functional incident response processes that help organizations assess materiality, meet reporting obligations, and reduce exposure before a small misstep becomes a public crisis.