Unsanctioned AI is becoming the latest workplace dilemma.
Employees across the UK are quietly turning to artificial intelligence tools at work — and not all of them have permission. A new wave of 'Shadow AI' is worrying workplaces, with experts warning that these tools pose growing risks to company security and sensitive data.
Recent research from Microsoft reveals that 71% of UK employees have used an unsanctioned AI tool, and over half (51%) continue to do so weekly. This trend highlights how deeply AI has embedded itself into daily workflows, even without organizational approval.
What Is Shadow AI?
“Shadow AI” refers to artificial intelligence tools that employees use without their company’s knowledge or consent. These might include popular chatbots, writing assistants, or AI-powered data tools that help speed up everyday tasks.
While these tools can boost efficiency, they also open the door to potential data leaks, compliance issues, and cybersecurity vulnerabilities. The lack of oversight makes Shadow AI a double-edged sword for businesses.
Why Employees Turn To Shadow AI
The rise of Shadow AI isn’t entirely surprising. Many employees say they simply don’t have access to approved AI tools. According to Microsoft’s study, 28% of workers report that their company doesn’t provide any sanctioned AI options, pushing them to find their own solutions.
AI is being used for everything from drafting emails and reports to creating presentations and financial summaries. Nearly half (49%) of respondents said they rely on AI tools to reword sensitive communications into more professional, “corporate-friendly” messages.
The convenience and productivity benefits are clear — but so are the risks.
The Hidden Risks Of Unsanctioned AI
Despite the widespread use of Shadow AI, awareness of its dangers remains low. Only 32% of employees say they’re concerned about sharing company or customer data with AI systems. Even fewer — just 29% — worry about the cybersecurity implications of using these tools without IT oversight.
This lack of caution could expose businesses to data breaches, policy violations, and intellectual property leaks. Once data is uploaded into external AI systems, it’s often unclear where it goes or how it’s used.
Businesses Need To Act — Fast
To tackle this growing issue, experts suggest that companies embrace AI safely rather than ignore it. Establishing clear AI usage policies, providing approved tools, and training employees on responsible AI practices are essential steps.
If businesses don’t adapt, employees will continue turning to unauthorized solutions — creating an even deeper shadow AI culture that’s harder to control.
A new wave of 'Shadow AI' is worrying workplaces, not just because it’s happening, but because it’s happening in the shadows. Companies that proactively offer transparent, approved AI tools can harness the power of generative AI without compromising data security.
AI isn’t going anywhere — but how organizations manage it will define the next chapter of workplace innovation.
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