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New research from Smartsheet reveals a significant security and compliance risk, with 70% of operations management professionals admitting to using unsanctioned "shadow AI" tools to overcome the inefficiencies of legacy systems and manual processes. The 2026 Operational Excellence Report highlights a widening gap between the pace of business change and the adaptability of operational tools, driving widespread use of ungoverned AI amidst pressure to increase efficiency.
Smartsheet research finds 70% of operations professionals use ungoverned "shadow AI" tools.
94% use AI for tasks, but only 26% of companies have fully enforced AI governance policies.
99.6% of teams must shift priorities rapidly, but 71% are hindered by outdated tools.
An "operational paradox" exists: 99% still waste time on low-value tasks despite prioritizing efficiency.
76% rely on workarounds due to rigid tools, creating visibility gaps and slowing execution.
The report advocates for Intelligent Work Management platforms with built-in, governed AI.
The report identifies a critical disconnect: while 94% of operations professionals leverage AI for content creation and automation, corporate governance has not kept pace. Pratima Arora, Chief Product Officer at Smartsheet, stated, “It’s clear that businesses are facing an urgent inflection point: operations professionals are creating compliance and security risks by using ungoverned, shadow AI to overcome the limitations of legacy tools.” This widespread use of unsanctioned tools exposes organizations to significant data security and compliance vulnerabilities.
The research underscores a pervasive execution crisis where the demand for efficiency clashes with rigid systems. Nearly all teams (99.6%) face constant priority shifts, yet the majority are bogged down by manual processes and outdated tools. This leads to an "operational paradox" where, despite efficiency being the top priority, 99% of professionals still spend substantial time on low-value, repetitive tasks each week, and only 8% believe their organization has achieved operational excellence.
The report positions Intelligent Work Management as the necessary solution to bridge this gap. Such a platform would embed governed AI directly into secure workflows, providing the adaptability teams need without sacrificing security or control. Analyst Maribel Lopez of Lopez Research emphasized the required shift: “AI can help close this gap, but only when paired with enterprise-grade governance and secure, integrated workflows.” This approach aims to deliver full visibility, connected work, and data-driven insights within a compliant framework.
The findings signal an urgent need for organizations to modernize their operational infrastructure with platforms that unite people, data, and governed AI to mitigate risk while enabling the speed and flexibility required in today's business environment.
About Smartsheet
Smartsheet is the Intelligent Work Management Platform that unites people, data and AI to turn strategy into measurable enterprise impact. Purpose-built for scale, Smartsheet gives enterprises the speed, governance and trust to execute complex work across portfolios, operations and IT on a single, secure system. Trusted by 123,000 customers and used by teams in 85% of the Fortune 500, Smartsheet empowers millions of users to move faster, reduce risk and realize ROI with confidence.
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