BlackFog has unveiled new research highlighting the growing risks of Shadow AI in the workplace, as employees increasingly turn to unproven AI tools to meet deadlines and boost productivity.
The study found that 86 percent now use AI tools at least weekly for work-related tasks. However, more than one-third admit to using free versions of company-approved AI tools, raising concerns about where sensitive corporate data is stored, processed and accessed. Among respondents using AI tools not approved by their employer, 58 percent rely on free versions, which often lack enterprise-grade security, data governance, and privacy protections.
The findings suggest a general acceptance of risk among employees, with 63 percent of respondents believing it is acceptable to use AI tools without IT oversight if no company-approved option is provided. The ‘speed outweighs security’ mindset is reinforced by the fact that 60 percent of respondents agree that using unsanctioned AI tools is worth the security risks if it helps them work faster or meet deadlines.
Additionally, 21 percent believe their employer would “turn a blind eye” to the use of unapproved AI tools as long as work is completed on time. Additional findings include:
- Senior level leaders are more likely to accept risks: 69 percent of respondents at President or C-level and 66 percent of those at Director or Senior VP level believe speed trumps privacy or security. In contrast, 37 percent in administrative roles and 38 percent in junior executive positions share this view.
- Sensitive corporate data is being shared on unsanctioned AI tools: One-third of employees have shared research or data sets, more than a quarter have shared employee data such as staff names, payroll, or performance information, and 23 percent have shared financial statements or sales data.
- Third-party integrations heighten risk: Around half of employees admit to connecting or integrating AI tools with other work systems or apps without IT department approval or oversight.
Commenting on the findings, Dr. Darren Williams, CEO and Founder of BlackFog, said, “This research is a stark indication not only of how widely unapproved AI tools are being used, but also the level of risk tolerance amongst employees and senior leaders. This highlights the need for greater visibility into these security blind spots.”
To learn more about the research, click here.
