Shadow AI use poses significant risk to businesses, new research reveals

New research from BlackFog indicates a widespread adoption of shadow AI among employees, with a significant portion admitting to using unapproved or publicly available AI tools for work. This trend poses considerable risks to businesses, as reported by Tech Radar.

The study found that 58% of workers use unapproved AI tools, with 63% believing it's acceptable to do so without IT approval. This reliance on unapproved tools leads to the sharing of sensitive data, including research datasets (33%), employee information like names and payroll (27%), and financial or sales data (23%). This widespread use of shadow AI, also noted by Cybernews, suggests a disconnect between IT security policies and employee needs, exacerbated by senior leadership prioritizing speed over security.

The prevalence of shadow AI highlights a critical need for improved IT oversight and visibility into employee workflows. While IT teams must reinforce security protocols and guide users toward approved tools, there's also a clear demand for enterprise-grade versions of popular AI applications. Addressing this gap by meeting employees' needs with secure, approved solutions could mitigate risks.

Source: Tech Radar