Artificial Intelligence is becoming embedded in everyday work faster than many organisations can govern it. While businesses continue to invest in approved AI platforms and developing governance frameworks, employees have already begun finding their own solutions.
Our latest research found that 75% of employees globally now use AI at work every day and 64% describe their overall experience as positive. AI is no longer an emerging technology; it is becoming a core part of how people work.
Whether it’s using large language models (LLMs) to draft emails, analysing spreadsheets through an AI assistant, or relying on niche AI tools to speed up repetitive tasks, unofficial AI usage is becoming commonplace across organisations. Often referred to as “shadow AI”, these tools exist outside approved IT environments, creating concerns around security and data privacy.
But viewing shadow AI solely as a security risk leaves an organisational blind spot. Shadow AI highlights where work is under pressure. In many cases, it is not evidence of employees ignoring company policy. Instead, it signals that existing technology isn’t meeting the pace or demands of modern work. Organisations that recognise this distinction will be better positioned to improve both security and productivity.
While many employees use AI with positive intentions, organisations must remain aware that entering customer data, confidential business information, source code or intellectual property into unapproved AI services can create security, privacy and compliance risks. Effective governance helps employees benefit from AI while ensuring sensitive information remains protected.
Employees aren’t trying to create risk
The conversation around shadow AI often assumes employees are knowingly bypassing security controls. In reality, most are simply looking for the fastest way to complete their work.
Work has become more complex than ever, information volumes continue to grow, and expectations around productivity continue to increase. Employees naturally gravitate towards technology that helps them move faster and focus on higher value work.
Almost every employee (97%) says AI brings noticeable benefits to the workplace, with automation of repetitive tasks emerging as the most widely recognised advantage.
When people consistently turn to external tools, leaders should ask what this behaviour reveals about their organisation. This isn’t necessarily an act of defiance. More often, it reflects employees solving immediate business problems using whatever technology is readily available.
Rather than viewing every instance of shadow exclusively through a security lens, organisations should read it as operational insight, a map of where processes have become cumbersome and where approved systems are no longer supporting the way work gets done. That map is valuable: it shows where future investment could have the greatest impact. Focusing exclusively on blocking shadow AI risks addressing the symptom rather than the underlying cause.
The organisations that will create the most value from AI are those whose governance reflects the reality of how people work.
Bans rarely solve behavioural problems
While understandable from a governance perspective, blanket bans on public AI platforms rarely eliminate demand. Employees who see genuine productivity gains are unlikely to stop seeking faster ways of working simply because access becomes more difficult.
Instead, unofficial AI usage often becomes less visible.
This creates a more challenging situation for IT and security teams. Without visibility, organisations cannot understand how AI is being used or where governance needs to adapt. Employees are more likely to adopt approved solutions when enterprise AI tools provide the same ease of use and productivity benefits as consumer offerings while adding the security, privacy, governance and administrative controls organisations need to protect their data and maintain compliance.Managing shadow AI therefore requires more than technical controls. To manage the use of shadow AI, organisations must build trust by giving employees clear guidance and access to approved tools that support the way they work.
Governance should enable innovation, not slow it down
Effective AI governance creates the conditions for employees to innovate safely while ensuring organisational data remains protected. Not every AI use case creates the same level of risk. Organisations should apply risk-based governance, focusing stronger controls on scenarios involving sensitive data, automated decision-making or business-critical processes, while avoiding unnecessary barriers for lower-risk productivity use cases. Mature organisations are increasingly integrating AI governance into existing risk management, security, privacy and compliance processes rather than treating it as a separate discipline.
Our research suggests employees are looking for exactly this balance. Nearly three-quarters (73%) of employees say they are more likely to trust AI systems that clearly show what they are doing and why, while 70% are comfortable with AI taking action, provided they can step in when needed. Transparency and human oversight are essential for building trust in AI. Employees are more willing to adopt AI when they understand how decisions are made and where responsibility sits.
That means moving beyond static policies towards practical governance frameworks that evolve alongside technology. Employees need clear guidance on which AI tools are approved and what information can safely be shared with them, with human oversight remaining essential wherever AI takes real action.
Education is just as important as the technology. Many employees genuinely want to use AI responsibly but remain uncertain about organisational expectations. Providing practical training helps employees make better decisions while reducing the temptation to experiment outside of approved environments.
Security succeeds when it supports productivity
There has long been an assumption that stronger security inevitably creates more restrictions. In reality, the most effective security strategies are often built around the way people already work.
When approved tools are intuitive and fit naturally into everyday workflows, employees are far more likely to adopt them. Security becomes part of the employee experience, giving organisations the visibility they need while allowing people to work with confidence.
The businesses that succeed won’t be the ones that eliminate every instance of shadow AI. They’ll be the ones that learn from it. Employee behaviour offers one of the clearest indicators of where processes, technology and governance have fallen behind the reality of modern work.
Ultimately, shadow AI is both a leadership challenge and a governance challenge. Organisations that respond with clear guidance, trusted AI solutions and risk-based governance will be best positioned to turn widespread AI adoption into sustainable business value while maintaining security, compliance and customer trust.
