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70% of employees are using AI tools at work—often without IT’s knowledge. Shadow AI introduces hidden risks for your business.

Understanding the Risks of Shadow AI in the Workplace

AI-powered tools like ChatGPT, Microsoft Copilot, and Google Gemini are more accessible than ever. But what many business leaders don’t realize is that employees using AI tools is already happening — with or without IT’s knowledge.

This unsanctioned adoption, often called Shadow AI, can create hidden vulnerabilities around data privacy, compliance, and cybersecurity.

What Is Shadow AI?

Shadow AI refers to employees using AI tools without approval from IT or leadership.

Real-world examples include:

  • Sales teams using AI to generate customer emails

  • HR teams using AI to filter resumes

  • Team members summarizing meetings or automating daily tasks with AI chatbots

The concern? These tools often retain data and could compromise sensitive company information.

The Security and Compliance Risks

When employees use AI without oversight, companies are exposed to several risks:

  • AI systems may store and learn from the data input, risking intellectual property or private information

  • Sensitive business data may be unknowingly shared or accessed

  • Misinformation and compliance violations become more likely with unvetted AI-generated outputs

The bottom line? Shadow AI increases your exposure to data breaches, legal concerns, and reputational risk.

How to Manage AI Use in the Workplace

Instead of banning AI tools altogether, businesses should focus on creating structure.

  • Create an AI usage policy for your team

  • Educate employees about AI risks and responsible usage

  • Track how employees are using AI tools in everyday workflows

The Next Step: Securing AI Use

With more employees using AI tools every day, addressing the risks is no longer optional — it’s essential. Businesses that take a proactive approach to AI governance will be better positioned to protect their data and stay compliant.

Want help building your roadmap? We’re exploring AI in-depth at our May 8th event, AI vs Hype: Cutting Through the Noise. Learn how to take control of your AI strategy and secure your business for the future. Learn more and register here: https://bit.ly/aivshypeevent

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