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Shadow AI in municipalities: what runs next to Copilot

A municipality that has rolled out Copilot has not thereby settled its AI use. Next to Copilot run Perplexity, ChatGPT, transcription and translation tools, mostly without a decision. How to keep track without following employees.

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Quick answer

In almost every municipality that has rolled out Copilot, more AI services are in use than that one: Perplexity for research with sources, a free ChatGPT account for text work, a transcription tool for meetings, a translation service at the front desk. That is shadow AI: self-serve, without a decision from the municipality, and actually in use. It is not a list of violations but a list of tools nobody has decided on yet. A quarterly inventory falls behind, because tools appear faster than a survey finds them. What works is observing continuously which domains are opened in the browser, with no user id, and recording a decision per tool.

01

Rolling out Copilot does not settle the other AI services; they keep running in a second tab

02

In a municipality the text involved is citizen service numbers, benefit files and youth care, so the account type weighs heavily

03

A quarterly inventory describes the previous quarter, not the current working day

04

Recording only the service's domain answers the governance question without watching people

05

A tool without a decision is work still to be done, not an incident

A policy adviser has to write a memo for the executive board on a new subsidy scheme and wants to know how five other municipalities handled it. Copilot gives a tidy answer with no sources. In a second tab she opens Perplexity, gets five links, and carries on from there. On the IT side, Copilot is on record as "the municipality's AI tool".

That is how it goes in almost every municipality that has rolled out Copilot. The rollout settled one tool. The other tools did not go away; they run next to it, mostly on free accounts, and nothing has been decided about any of them. That is shadow AI, and it is not a list of violations. It is a list of decisions still to be made.

What runs next to Copilot?

The list differs per municipality, but a handful of tools turn up nearly everywhere. They are there for a reason: at that moment Copilot is not the obvious route for the job. Why that happens is covered in we have Copilot, so why do employees use other AI tools.

What gets openedWhy people choose itWhat the municipality needs to know
Perplexity or another AI search engineResearch with sources, for a council question or a policy memoFree or business account, and what was in the query
ChatGPT on a free accountRewriting in plain language, summarising, an emailWhether input is used for training, and whether a citizen service number was in the text
Meeting transcriptionMinutes of a team meeting or a council committee without typingWhere the recording is processed, and who was named in the conversation
Translation servicesFront desk and neighbourhood teams, a letter in Arabic or PolishWhether the letter contained personal data
AI features in existing softwareThe word processor or the case system gained an assistant in an updateNo new domain, no new purchasing decision, but a new processing operation

The last row is the awkward one. Nothing new was installed, so nobody requested anything, and yet text is now sent to a model that it did not go to last year.

Why does this weigh more heavily in a municipality?

Because the text being pasted is rarely neutral. A letter about a benefit contains a citizen service number (BSN). A neighbourhood team's meeting note contains a family situation. An objection letter contains a name, an address and the story behind it. In a municipality, the default content of a working day is personal data, and part of it is special-category or highly sensitive.

Putting that data into a free account is different from putting it into an environment the municipality set up. With a personal account, input can be used to improve the model unless the user switches that off, and there is no data processing agreement. The difference per account type is in free versus business AI accounts. The Dutch Data Protection Authority reported several breach notifications in which employees had put personal data into an AI chatbot, and advises organisations to agree on whether it is allowed and with which data.

The BIO, the information security baseline for Dutch government, asks a municipality for data classification, vendor management and staff awareness. An AI service nobody has decided on sits outside all three. How the BIO relates to AI use is in BIO and NEN 7510: AI and privacy in government and healthcare.

Why does a quarterly inventory fall behind?

A municipality has allowed Copilot. In March the CISO runs a survey across all departments. Next to Copilot, Perplexity, ChatGPT and three specialised tools turn out to be in use: a translation service at the front desk, a transcription tool in the social services domain, and an AI feature in the word processor. Two of them are not in the register anywhere. That is not an incident. It shows that the register is not keeping up with the working day.

By June, the March list is already out of date. The case system gained a summarising feature in an update. One team switched from one transcription tool to another because it integrated better with Teams. And a communications officer started using an image generator for the newsletter that did not exist in March. Nobody did anything wrong. The survey described March.

This is not a matter of surveying more often. Every survey is a snapshot, and why AI tool catalogs age describes the mechanisms behind it: tools appear daily, AI shows up in software you already have, and tools change owners. Which methods exist for finding use, and what each one misses, is in how do you find out which AI tools employees actually use. A municipality has one more thing to contend with: the proxy logs see the town hall, not the laptop of the neighbourhood team member working from home.

How do you keep track without following employees?

By recording only what the decision needs. The question is: which AI services are opened in our municipality, how often, and is there a decision about them. For that answer the service's domain is enough. Who opened it, which page and what was on it do not change the decision, and they do change the measurement: from a count of services into a record of people. That distinction, and what it means for the GDPR and the works council, is in AI monitoring versus employee monitoring.

That is why the BeeSensible extension records only the registrable domain, at most once per day per device, with no user id, no path and no page content. The observed domains are matched to a catalog of 865 AI tools, each with its vendor, country, training policy and a risk score. An admin sees which tools still have no decision and records that decision; BeeSensible never chooses on its own.

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

What the AI tools module shows and what it does not is on the product page. The phone without the extension stays out of view, and the AI feature in the case system has no domain of its own. For that second one the rule is: reassess when something prompts it, such as an update or new terms, not on a calendar.

What do you do with the list?

Start with what is opened most and has no decision. For Perplexity that means checking whether a business tier exists, what terms it offers, and whether research with sources is something the municipality wants to encourage. Often the answer is yes, within a condition: no personal data in the query. That is "limited use", with the condition in one sentence.

For the free ChatGPT account the answer is usually: not allowed, with Copilot or a business tier named as the alternative. That decision only works if it reaches the employee at the moment she opens the tool, not if it sits on the intranet. What such a list with statuses looks like is in which AI tools may employees use; the rest of the subject is under AI governance.

The policy adviser from the first paragraph did nothing wrong, and she does not need to be told otherwise. What the municipality does is see her tool, decide about it, and let her know that decision at the moment she opens the tab. Tomorrow the admin does not look at who used Perplexity, but at which tools were opened this month and still have no decision.

FAQ

Common questions

Which AI tools do municipalities use next to Copilot?

The recurring ones: Perplexity or another AI search engine for research with sources, a free ChatGPT account for rewriting and summarising, transcription tools for council and team meetings, translation services at the front desk and in neighbourhood teams, and AI features that appear in software the municipality already had. Which ones exactly, you only know once you observe it; it differs per municipality and per month.

Is shadow AI in a municipality a data breach?

Not in itself. That an AI service was opened without a decision only says that nobody has looked at it yet. Whether there is a breach depends on what was put in: a public council paper in a free account is different from a benefits file with a citizen service number. The Dutch Data Protection Authority has received breach notifications where employees put personal data into a chatbot, so the second situation does occur.

Why is a quarterly survey not enough?

Because a survey is a snapshot and the subject moves. Between two surveys new tools appear, existing software gains an AI feature without a new purchasing decision, and people do not report what they do not recognise as AI. The March list is not wrong in June, but it describes March.

May a municipality keep track of which AI tools employees open?

For the question of which tools need a decision, the service's domain is enough: that an AI tool was opened in the organisation, which one, and how often. Who did it adds nothing. A measurement with no user id, no path and no content stays a count of services and does not become a record of people. Write that down and discuss it with the DPO and the works council.

What do you do with a tool that has no decision yet?

Assess it, starting with the tools opened most often. Look at the vendor, the country, whether it trains on input, whether a data processing agreement is available, and whether a business tier exists. Then choose: allow, allow within a condition, or not allow with an alternative named. No decision yet is an honest interim state, not a final one.

Portrait of Rens Timmermans of BeeSensible

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