As enterprises rapidly integrate AI into their workflows, a significant portion of usage occurs outside approved governance frameworks, a phenomenon known as Shadow AI. The rising adoption of shadow AI creates new challenges around data security, compliance, intellectual property protection, and risk management. This Quick Takes report explores how Shadow AI has evolved from an isolated IT concern into a broader compliance issue for enterprises worldwide. Despite widespread awareness of the risks associated with unauthorized AI usage, many organizations still lack the visibility and controls needed to effectively monitor and govern AI activity across their environments. This growing disconnect between concern and action is creating a new category of companies focused on shadow AI governance, monitoring, and compliance. Key startups in this space include Reco, Witness AI, and Grip Security.