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Productivity pressures are driving employees and senior leaders in enterprises to adopt unapproved AI tools, commonly known as Shadow AI, to accelerate work and meet tight deadlines, significantly heightening risks of data leakage and security breaches.
The rise of Shadow AI in enterprises reflects a growing tension between productivity demands and data security. A recent survey of 2,000 employees in the UK and US at companies with over 500 staff reveals widespread adoption of AI tools for work. With 86% incorporating AI weekly, many turn to free or unapproved versions when official options fall short or are unavailable.
This behavior stems from a "speed over security" mindset. Among those using unsanctioned tools, 58% opt for free versions lacking robust enterprise security, governance, and privacy features. Alarmingly, 60% of respondents view the risks as acceptable if it enables faster performance or deadline compliance, while 21% expect employers to overlook such usage as long as results are delivered.
Risk tolerance varies by role, with senior executives leading the trend. 69% of President or C-level respondents and 66% at Director or Senior VP levels agree that speed outweighs privacy or security concerns. In contrast, only 37% in administrative roles and 38% in junior positions share this perspective. This top-down acceptance amplifies the potential for widespread Shadow AI exposure.
Employees are feeding critical information into unapproved AI platforms. One-third (33%) have shared research or data sets, over a quarter (27%) have inputted employee details like names, payroll, or performance data, and 23% have uploaded financial statements or sales information. Such actions expose intellectual property, personal data, and confidential business insights to potential leakage.
Half (51%) of employees admit to connecting unapproved AI tools with other workplace systems or applications without IT oversight. These third-party integrations create additional vulnerabilities, allowing data to flow unchecked across ecosystems and increasing the likelihood of breaches.
“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 should raise red flags for security teams and highlights the need for greater oversight and visibility into these security blind spots. AI is already embedded in our working world, but this cannot come at the expense of the security and privacy of the datasets on which these AI models are trained.” — Dr. Darren Williams, CEO and Founder of BlackFog.
As AI becomes integral to daily workflows, enterprises must address Shadow AI risks proactively to protect sensitive data while maintaining productivity. Enhanced visibility, approved AI alternatives, and endpoint security measures are essential to mitigate these emerging threats.
About BlackFog
BlackFog is a global AI-based cybersecurity company that pioneered on-device anti data exfiltration (ADX) technology, delivering advanced protection against ransomware, data loss, and the rapidly growing threat of shadow AI. Its ADX platform ensures organizations can prevent unauthorized data movement, whether driven by cybercriminals or ungoverned AI tools, safeguarding customer data and trade secrets. BlackFog recently won the coveted Cybersecurity Breakthrough Award for AI-based Cybersecurity Innovation of the Year. The company also won Gold at the 2025 Globee Awards for Best AI-Driven Data Protection Solution and for its State of Ransomware report.
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