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GDPR and workplace AI 8 min read

Shadow AI and employee privacy: two interests that do not collide

The organisation wants to know which AI tools are in use. The employee does not want to be tracked. That looks like a choice between two interests, and it is not one: the question of which tools needs no person.

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Quick answer

An organisation wants to know which AI tools are in use so it can take a decision on them. An employee does not want their employer keeping a record of what they do. Those two interests only collide if the organisation answers the first question with data about people. It does not have to: which tools are opened, how often, and whether a decision exists are questions about services and about the organisation. A measurement that records only the domain and a count answers them in full and says nothing about who. The organisation gets sight of shadow AI and the employee keeps their privacy, from the same design.

01

Sight of shadow AI needs tools and counts, not people

02

The employee loses nothing when the measurement carries no user id

03

Oversight of individuals makes the figures worse, because use moves to the private phone

04

The decision on a tool belongs with the employee, the count with the organisation

05

An incident investigation is a separate procedure and does not belong in the measurement

A security manager at an insurer wants to know which AI tools are being used across the organisation and asks IT for an inventory. The same day a reply comes back from HR: this cannot happen without the works council, because then we are tracking employees. Two emails, and the project stalls.

Both are right about their own interest, and both assume one comes at the expense of the other. That is the mistake. The organisation wants to know which tools; the employee does not want a record of what they do. The first question needs no person, so the second concern need never arise.

What does the organisation actually want to know?

Shadow AI is AI use people started on their own: a tool anyone can start online, on which the organisation has taken no decision, and which is actually in use. What that is and why a ban does not solve it is in what is shadow AI. The security manager's question is the ordinary follow-up: which of those tools do we have, and which ones need a decision?

That is a question about services. The answer is a list of domains, a count per domain, and a status per domain: allowed, limited use, no decision yet, not allowed. Nowhere in that list is a name, and nowhere is a name needed. The insurer remains the controller for what happens inside those tools, so the interest is real. It just does not ask for what HR fears.

What does the employee actually not want?

Not that the organisation sees nothing. Most people understand that an employer wants to know whether client data is ending up in a free chatbot. What they do not want is a record of themselves: which tools I use, how often, at what times, and the possibility that this comes back in an appraisal or a dispute.

That is a reasonable concern, and the GDPR takes it seriously: processing about employees needs a purpose, necessity, transparency in advance, and in the Netherlands the Works Councils Act adds to that. What an employer may and may not do is in can my employer monitor whether I use AI. But notice what the concern attaches to: the record of the person. Not the count of the tool.

Where is the difference?

In one field. An observation without a user id says: on this day, this domain was opened in the organisation. An observation with a user id says: this person opened this domain. The first is a count, the second a behavioural record. They can come from the same source and they are two different things, with a different legal basis, a different retention period and a different conversation with the works council.

InterestWhat it asks forWhat it does not ask for
Organisation: sight of shadow AIWhich domains, how often, which status, how it shiftsWho opened the tool
Organisation: making the decision landShowing the decision at the moment someone opens the toolRecording who saw the notice
Employee: no recordNo user id, no content, no breakdown per personThat the organisation sees nothing
Employee: knowing where they standThe decision per tool, and the alternativeA ban without explanation

The two bottom rows and the two top rows fit together. Not because someone struck a compromise; because the organisation's question was never about a person.

Why does oversight of individuals also work against the organisation?

Suppose the insurer opts for a measurement per employee after all. What happens? The 2025 study by KPMG and the University of Melbourne, among 48,000 workers in 47 countries, found that 57 percent of workers hide their AI use from their employer. That is the starting point, before anything has been announced.

Announce that use becomes visible per person and the use moves to the private phone and the private account. The security manager's figures drop, the use does not, and the sight the whole project was meant to deliver is gone. Oversight of individuals costs the organisation exactly the insight it introduced it for. A count without people has no such effect, because there is nothing to evade.

What does this look like in practice?

The insurer sets the measurement up on domain and count, presents the design to the works council, and switches it on. After six weeks the picture looks like this: Copilot is allowed and is opened most. ChatGPT and Perplexity also show up daily, along with three specialised tools nobody knew about: one that summarises policy terms, a translation tool and a transcription tool. Two of them have no decision yet, because they were on no list at all.

No incident, but work. The summarising tool sees clients' policy documents and gets a decision first. The transcription tool follows. Nobody needs to know who used them to decide that, and the works council saw the list before the security manager did. It also shows what a one-off inventory misses: the three unknown tools could not be asked about, because nobody knew they existed.

What does BeeSensible record?

The extension notices when someone opens an AI tool and reports only the registrable domain, at most once a day per device, with no user id, no path and no page content. Every tool starts at "no decision yet"; the organisation sets the status itself. When someone opens a tool that has a decision, that decision appears in the browser, with the approved alternative as the first button, and continuing is always possible. What happened after such a notice is counted per tool, without a user id.

Search tool, vendor or categoryโ€ฆ
865 tools
ChatGPT๐Ÿ‡บ๐Ÿ‡ธ
HighAllowed
Claude๐Ÿ‡บ๐Ÿ‡ธ
MediumAllowed
DeepSeek๐Ÿ‡จ๐Ÿ‡ณnew
CriticalNot allowed
Perplexity๐Ÿ‡บ๐Ÿ‡ธnew
MediumNo decision yet
Mistral๐Ÿ‡ซ๐Ÿ‡ท
LowNo decision yet
Midjourney๐Ÿ‡บ๐Ÿ‡ธ
MediumNo decision yet

Every tool, scored for risk

865 AI tools, each scored Low to Critical, with nothing pre-approved or pre-blocked until someone decides.

More about AI Tools

So the decision reaches the employee and the count reaches the organisation. Nowhere in the dashboard is there a breakdown per employee. How that design works as a whole, including small groups and the role of the works council, is in AI governance without monitoring employees, with the wider overview on the topic page for AI governance. The register itself is on the AI tools page.

Where does the incident go?

There is one situation in which the organisation does want to know who: a specific incident, say a client file that ended up in a free tool. That is an investigation question. It should have its own procedure, with its own legal basis, its own proportionality test and the safeguards that go with it.

What does not work is building the measurement of AI use so that it can carry that investigation. Then every count carries the weight of a file from that point on, and HR is right to be worried after all. Keep the two apart: the measurement answers the governance question, the investigation has its own route.

So do not reply to HR with "it is allowed", but with the design: which fields, no user id, and the list the works council gets to see first. Then both interests are served before the conversation starts.

FAQ

Common questions

Can an organisation map shadow AI without tracking employees?

Yes. Shadow AI is a question about tools: which services are being opened that nobody has assessed. For that question the domain of the service and a count are enough. Who opened it adds nothing. A measurement without a user id answers the organisation's question and leaves the employee out of the picture.

What exactly is the employee's interest?

Not that the organisation sees nothing, but that no record arises of what they do as a person: which tools, how often, at what times. Such a record can resurface later in an appraisal or a dispute. A count at organisation level cannot, because there is no person in it.

Why does oversight of individuals work against the organisation?

Because it changes the behaviour you wanted to measure. The 2025 study by KPMG and the University of Melbourne found that 57 percent of workers hide their AI use from their employer. Announce that use becomes visible per person and it moves to the private phone. The figures drop, the use does not, and the sight is gone.

Does the works council have a say in this?

In the Netherlands, a facility aimed at or suitable for observing the behaviour or performance of employees needs the works council's consent. A count per tool without people sits differently from a breakdown per employee, but always present the design beforehand. A works council that understands what is and is not recorded is the best guardian of that line.

What if there is an incident?

Then there is an investigation question, and it should have its own procedure with its own legal basis and its own safeguards. You do not answer that question with the measurement of AI use, and the measurement should not be built to serve it. Whoever mixes the two turns every count into a potential file.

Portrait of Rens Timmermans of BeeSensible

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