Shadow AI and AI Governance help organisations gain insight into AI usage, identify Shadow AI, protect sensitive data and enforce policies for both approved and unapproved AI applications. As AI adoption accelerates, organisations need effective AI governance to reduce risk, comply with NIS2 and the EU AI Act, and prevent data breaches.
Magic Stone delivers AI governance through Velatir — the platform that automatically maps Shadow AI across your organisation.
Shadow AI Detection & AI Governance — Velatir powered by Magic Stone
AI Governance That Gives You Control Without Slowing Anyone Down
Your team is already using AI. ChatGPT, Copilot, Claude, Gemini — and hundreds of tools you've never heard of. Some are sanctioned. Most just appeared. Every day, employees share confidential data, source code, and personal information with these tools without realising the risk.
Velatir gives you full visibility into that activity — and the tools to act on what you see. Map your AI landscape automatically, enforce data policies in real time, and generate the compliance documentation your auditors and insurers require.
See how AI is being used across your organisation. Control what matters. Stay compliant — without disrupting how people work.
Because you can't govern AI tools you don't know exist — and with agentic AI now embedded in 40% of enterprise apps (Gartner, 2026), the gap is widening every quarter.
Shadow AI is already inside your organisation — and 98% of organisations don't know the full extent of it.
While IT teams focus on traditional security, 68% of employees use AI tools without IT approval (Awareways, 2025). 47% access them through personal accounts, bypassing enterprise controls entirely (Netskope, 2026). The EU's own cybersecurity agency confirmed in December 2025 that organisations cannot govern AI systems they don't know exist.
- Over 5,000 AI services exist — employees use whichever solves their immediate problem
- Confidential data, source code, and personal information leaves your environment daily
- Traditional DLP tools don't monitor AI tool interactions
- Voluntary surveys alone cannot identify the true scope of Shadow AI usage
Velatir maps your entire AI landscape automatically — giving you the visibility to govern it and the controls to protect it.
What Is Shadow AI?
Shadow AI is the use of AI tools and services by employees without IT knowledge or approval. When a finance analyst pastes next quarter's revenue figures into ChatGPT, when a lawyer uses Claude to summarise a confidential settlement, when HR uses an AI tool to screen CVs containing personal data — that is Shadow AI. It is not malicious. It is practical. And it is happening in every organisation today.
Unlike traditional Shadow IT (unauthorised apps and cloud storage), Shadow AI carries unique risks. AI tools ingest natural language — which means confidential information doesn't just travel to an unauthorised server, it is actively processed, stored, and potentially used to train models. The data leaves your control in a fundamentally different way.
The EU AI Act, fully applicable from August 2026, creates legal obligations around documenting AI usage, classifying AI risk, and maintaining human oversight. Without visibility into which AI tools are in use, compliance is structurally impossible. Velatir closes that gap.
What Velatir Gives Your Organisation
Complete AI governance — from visibility and policy enforcement to compliance documentation — without changing how your team works.
Automatic AI Landscape Mapping
Velatir's browser extension automatically traces every interaction with 4,000+ AI services. IT gets a complete, live map of which tools are in use, by whom, how often, and what data categories are involved — from day one, without surveys or self-reporting.
Real-Time Shadow AI Detection
Employees use personal accounts and personal browsers to access AI tools outside enterprise visibility. Velatir detects this activity in real time — including BYOAI (Bring Your Own AI) usage through private channels that traditional DLP tools cannot see.
Data Policy Enforcement
Define which AI tools can access which data categories. Velatir enforces these policies automatically — blocking sensitive data from reaching unsanctioned tools, logging every policy event, and alerting security teams to violations without disrupting approved workflows.
Audit-Ready Documentation
Generate the AI usage inventory, risk classification, and policy documentation required by the EU AI Act, NIS2, and GDPR — automatically. Every interaction is logged with the detail auditors and insurers require.
Policy Creation & Enforcement
Define acceptable AI use policies in plain language. Velatir translates them into technical controls that apply automatically across your organisation — no manual policy reviews, no spreadsheet-based risk registers.
AI Risk Classification
Velatir automatically classifies AI tools against the EU AI Act's risk categories — minimal, limited, high, and unacceptable. Know exactly which tools in your environment require documentation, human oversight, or outright prohibition.
Who Should Use Velatir?
Velatir is designed for any organisation where employees use digital tools and where data governance matters. Regulated industries carry the highest risk — but every organisation with a GDPR obligation needs AI visibility.
CISOs & Security Teams
Gain complete visibility into the AI attack surface. Detect Shadow AI before it becomes a data breach or a regulatory finding. Integrate with existing SIEM and DLP investments.
Legal & Compliance Officers
Generate the documentation required for EU AI Act Article 52 obligations, GDPR Article 30 processing records, and NIS2 Article 21 risk management — automatically.
IT Directors & CIOs
Build a governed, sustainable AI adoption framework. Know what tools are in use before employees ask you to sanction them. Define and enforce AI usage policies at scale.
Healthcare Organisations
Patient data processed by unsanctioned AI tools is a direct GDPR and NIS2 violation. Velatir gives healthcare providers the visibility and controls to prevent this — without impeding clinical workflows.
Financial Services & Insurance
DORA requires financial entities to document and monitor all digital tools used in operations. Velatir's continuous AI monitoring supports DORA ICT risk management obligations directly.
Manufacturing & Industry
Protect proprietary designs, production data, and supplier contracts from AI tool exfiltration. Velatir tracks AI usage across engineering and operations teams where Shadow AI risk is highest.
Common Velatir Use Cases
The specific scenarios where Shadow AI creates the greatest compliance, security, and operational risk.
GDPR & EU AI Act Compliance Audit
An organisation faces a GDPR audit and needs to demonstrate which AI tools processed personal data and under what basis. Velatir generates the complete processing inventory and policy documentation required.
Pre-M&A AI Risk Assessment
Before acquiring a target company, a buyer needs to understand the AI risk exposure in the target environment. Velatir maps all AI tool usage across the organisation in days, not months.
Board-Level AI Risk Reporting
The board requires quarterly reporting on AI risk exposure. Velatir provides automated, real-time dashboards showing sanctioned vs. unsanctioned usage, risk classification, and policy compliance.
Preventing Confidential Data Leakage
A law firm discovers that associates are pasting client NDA content into public AI tools. Velatir detects and blocks this before it becomes a breach — and logs the event for the firm's DPO.
EU AI Act Readiness
With the EU AI Act fully applicable from August 2026, organisations need to classify all AI tools in use and document their risk tier. Velatir automates the classification against all four EU AI Act risk categories.
Supply Chain AI Governance
An enterprise needs to verify that its suppliers are not using prohibited AI tools to process shared data. Velatir extends visibility beyond the internal network to cover supplier AI usage as well.
Built for NIS2, GDPR & EU AI Act Compliance
Every Velatir capability was designed with European regulatory requirements in mind. Magic Stone ensures the platform is implemented in full alignment with your compliance obligations.
Continuous monitoring of AI tool usage satisfies NIS2's requirement to manage cybersecurity risks from all digital tools in use — including unauthorised AI applications.
Velatir's automatic AI tool classification and usage documentation supports EU AI Act transparency and documentation obligations ahead of the August 2026 enforcement date.
Every AI tool that processes personal data is logged and documented by Velatir — satisfying the Article 30 record of processing activities requirement automatically.
DORA requires financial entities to maintain a complete register of ICT tools used in operations. Velatir's AI tool registry fulfils this requirement for AI-related tools directly.
Guides & Resources
AI GOVERNANCE & SHADOW AI
Explore VelatirSHADOW AI & TRUST
Explore VelatirFrequently Asked Questions
Everything you need to know about Shadow AI, AI governance, and how Velatir addresses it for organisations across the Benelux and Nordics.
Shadow AI refers to the use of AI tools, applications, and services by employees within an organisation without the knowledge, approval, or oversight of IT or security teams. Examples include using ChatGPT to draft contracts, Gemini to summarise financial reports, or Copilot to process customer data — all outside sanctioned enterprise controls. Shadow AI creates data leakage risk, compliance exposure under GDPR and the EU AI Act, and undermines an organisation's AI governance posture.
Velatir deploys a lightweight browser extension that automatically traces every interaction with over 4,000 AI services across an organisation's devices. It maps which tools are in use, by whom, how frequently, and what data categories are involved — without requiring surveys, manual inventories, or employee self-reporting. Detection is continuous and automatic from day one.
The EU AI Act is the world's first comprehensive legal framework for artificial intelligence, fully applicable from August 2026. It applies to any organisation that deploys, develops, or uses AI systems within the EU or whose AI outputs affect EU residents. Non-compliance can result in fines of up to €35 million or 7% of global annual turnover.
AI governance is the set of policies, controls, processes, and oversight mechanisms an organisation puts in place to ensure that AI tools are used responsibly, securely, and in compliance with applicable regulations. Velatir automates the technical layer of AI governance — providing the visibility and policy enforcement that manual processes cannot deliver at scale.
NIS2 Article 21 requires organisations to implement appropriate technical and organisational measures to manage cybersecurity risks — including risks arising from AI tool usage and Shadow AI. Velatir's continuous monitoring and policy enforcement capabilities directly support NIS2 compliance obligations.
Shadow IT refers to the use of any unauthorised technology without IT approval. Shadow AI is a subset specifically focused on AI-powered tools. Shadow AI carries unique risks: AI tools process natural language inputs that often contain confidential data, and the outputs can expose sensitive information or violate GDPR and EU AI Act obligations. Over 5,000 AI services are freely accessible — making Shadow AI a far larger surface than traditional Shadow IT.
Velatir supports GDPR compliance by identifying which AI tools are processing personal data without authorisation. It enforces data handling policies in real time, generates audit documentation showing which data categories were processed by which AI tools, and enables organisations to demonstrate accountability to data protection authorities.
Yes. Velatir's browser extension is lightweight and operates passively in the background. Employees continue using approved tools without interruption. For unsanctioned tools, Velatir provides configurable responses — from alerting and logging to active blocking — depending on the organisation's governance policy.
Trusted across the Benelux and Nordics
“We had no idea 40+ AI tools were in use across our organisation. Velatir showed us the full picture in 48 hours — and let us build a compliant AI policy around what was actually happening, not what we assumed.”
“Our legal team was using public AI tools to summarise confidential settlement agreements. Velatir flagged it before it became a breach. One incident avoided — and now we have governance in place.”
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