Unmasking the Unseen: Your Guide to Taming Shadow AI with Cloudflare One

Don't let "Shadow AI" silently leak your data to unsanctioned AI. This new threat requires a new defense. Learn how to gain visibility and control without sacrificing innovation.

Unmasking the Unseen: Your Guide to Taming Shadow AI with Cloudflare One

2025-08-25

Noelle Kagan

Joey Steinberger

8 min read

This post is also available in 繁體中文, Deutsch, 日本語, 한국어, Español (Latinoamérica), Nederlands and Français.

The digital landscape of corporate environments has always been a battleground between efficiency and security. For years, this played out in the form of "Shadow IT" — employees using unsanctioned laptops or cloud services to get their jobs done faster. Security teams became masters at hunting these rogue systems, setting up firewalls and policies to bring order to the chaos.

But the new frontier is different, and arguably far more subtle and dangerous.

Imagine a team of engineers, deep into the development of a groundbreaking new product. They're on a tight deadline, and a junior engineer, trying to optimize his workflow, pastes a snippet of a proprietary algorithm into a popular public AI chatbot, asking it to refactor the code for better performance. The tool quickly returns the revised code, and the engineer, pleased with the result, checks it in. What they don't realize is that their query, and the snippet of code, is now part of the AI service’s training data, or perhaps logged and stored by the provider. Without anyone noticing, a critical piece of the company's intellectual property has just been sent outside the organization's control, a silent and unmonitored data leak.

This isn't a hypothetical scenario. It's the new reality. Employees, empowered by these incredibly powerful AI tools, are now using them for everything from summarizing confidential documents to generating marketing copy and, yes, even writing code. The data leaving the company in these interactions is often invisible to traditional security tools, which were never built to understand the nuances of a browser tab interacting with a large language model. This quiet, unmanaged usage is "Shadow AI," and it represents a new, high-stakes security blind spot.

To combat this, we need a new approach—one that provides visibility into this new class of applications and gives security teams the control they need, without impeding the innovation that makes these tools so valuable.

Shadow AI reporting

This is where the Cloudflare Shadow IT Report comes in. It’s not a list of threats to be blocked, but rather a visibility and analytics tool designed to help you understand the problem before it becomes a crisis. Instead of relying on guesswork or trying to manually hunt down every unsanctioned application, Cloudflare One customers can use the insights from their traffic to gain a clear, data-driven picture of their organization's application usage.

The report provides a detailed, categorized view of your application activity, and is easily narrowed down to AI activity. We’ve leveraged our network and threat intelligence capabilities to identify and classify AI services, identifying general-purpose models like ChatGPT, code-generation assistants like GitHub Copilot, and specialized tools used for marketing, data analysis, or other content creation, like Leonardo.ai. This granular view allows security teams to see not just that an employee is using an AI app, but which AI app, and what users are accessing it.

How we built it

Sharp eyed users may have noticed that we’ve had a shadow IT feature for a while — so what changed? While Cloudflare Gateway, our secure web gateway (SWG), has recorded some of this data for some time, users have wanted deeper insights and reporting into their organization's application usage. Cloudflare Gateway processes hundreds of millions of rows of app usage data for our biggest users daily, and that scale was causing issues with queries into larger time windows. Additionally, the original implementation lacked the filtering and customization capabilities to properly investigate the usage of AI applications. We knew this was information that our customers loved, but we weren’t doing a good enough job of showing it to them.

Solving this was a cross-team effort requiring a complete overhaul by our analytics and reporting engineers. You may have seen our work recently in this July 2025 blog postdetailing how we adopted TimescaleDB to support our analytics platform, unlocking our analytics, allowing us to aggregate and compress long term data to drastically improve query performance. This solves the issue we originally faced around our scale, letting our biggest customers query their data for long time periods. Our crawler collects the original HTTP traffic data from Gateway, which we store into a Timescale database.

Once the data are in our database, we built specific, materialized views in our database around the Shadow IT and AI use case to support analytics for this feature. Whereas the existing HTTP analytics we built are centered around the HTTP requests on an account, these specific views are centered around the information relevant to applications, for example: Which of my users are going to unapproved applications? How much bandwidth are they consuming? Is there an end-user in an unexpected geographical location interacting with an unreviewed application? What devices are using the most bandwidth?

Over the past year, the team has defined a set framework for the analytics we surface. Our timeseries graphs and top-n graphs are all filterable by duration and the relevant data points shown, allowing users to drill down to specific data points and see the details of their corporate traffic. We overhauled Shadow IT by examining the data we had and researching how AI applications were presenting visibility challenges for customers. From there we leveraged our existing framework and built the Shadow IT dashboard. This delivered the application-level visibility that we know our customers needed.

How to use it

****1. Proxy your traffic with Gateway****

The core of the system is Cloudflare Gateway, an in-line filter and proxy for all your organization's Internet traffic, regardless of where your users are. When an employee tries to access an AI application, their traffic flows through Cloudflare’s global network. Cloudflare can inspect the traffic, including the hostname, and map the traffic to our application definitions. TLS inspection is optional for Gateway customers, but it is required for ShadowIT analytics.

Interactions are logged and tied to user identity, device posture, bandwidth consumed and even the geographic location. This rich context is crucial for understanding who is using which AI tools, when, and from where.

****2. Review application use****

All this granular data is then presented in an our Shadow IT Report within your Cloudflare One dashboard. Simply filter for AI applications so you can:

High-Level Overview: Get an immediate sense of your organization's AI adoption. See the top AI applications in use, overall usage trends, and the volume of data being processed. This will help you identify and target your security and governance efforts.

Granular Drill-Downs: Need more detail? Click on any AI application to see specific users or groups accessing it, their usage frequency, location, and the amount of data transferred. This detail helps you pinpoint teams using AI around the company, as well as how much data is flowing to those applications.

ShadowIT analytics dashboard

****3. Mark application approval statuses****

[...]

Original source