A recent study by Germany-based multinational software corporation Software AG revealed that half of all employees now engage in “Shadow AI” practices, using unsanctioned or ad-hoc AI tools. The study surveyed 6,000 knowledge workers across the U.S., U.K., and Germany, stressing the growing reliance on non-company-issued AI tools in professional environments.
According to the research, 75 percent of knowledge workers already use AI daily, and nearly half (46 percent) stated they would continue using personal AI tools even if their “organizations banned them completely.” This presents a significant challenge for businesses that must balance productivity gains with risks of using AI, like data leakage, cyberattacks, and regulatory violations.
“If 2023 was a year of experimentation, 2024 will be defined as the year that GenAI took hold,” said Steve Ponting, Director at Software AG. “As usage increases, so does the risk of cyber attacks, data leakage, or regulatory non-compliance. Consequently, business leaders need to have a plan in place for this before it’s too late.”
Shadow AI: A Boost for Workers but a Headache for Employers
For many workers, AI tools aren’t just a convenience but a necessity. The study found that many workers see AI as a career enabler, with 47 percent believing these tools can help quicken their promotions. Most knowledge workers cited time savings (83 percent) and increased job ease (81 percent) as key benefits.
However, the findings also uncovered a notable “AI utility gap,” with 53 percent of employees saying they prefer using personal AI tools for greater independence and 33 percent claiming that their companies’ IT departments don’t provide the necessary tools they need. This gap between what employees want and what employers provide creates a growing issue for organizations, given that employees are aware of potential risks.
Other key findings:
- 72 percent flagged cybersecurity concerns
- 70 percent highlighted data governance issues
- Just 27 percent routinely run security scans on their tools
- 29 percent review data usage policies
What Can Organizations Do About Shadow IT?
Software AG’s findings suggest that businesses should focus on safely integrating AI into their operations by offering employees the right tools, coupled with strong training programs, which can help minimize risks while maximizing the benefits of AI.
“Shadow AI is not going anywhere, but it is supercharging the operational chaos already engulfing many organizations,” said J-M Erlendson, Global Evangelist at Software AG. “A transparent framework for their processes, coupled with an understanding of the tools employees want—and the training they need—are good building blocks for better incorporating Shadow AI. It’s clear that AI is not going away, and, collectively, we need to address it in the right way now.”
The unethical use of AI tools in the workplace has become commonplace, and the trend shows no sign of slowing down. Experts predict that 90 percent of workers will rely on AI in the near future. Organizations that do not adapt may expose themselves to data breaches, cybersecurity threats, and operational chaos.