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Menlo 2025 Report: 68% Surge in Shadow AI Risks in Enterprises


Menlo 2025 Report: 68% Surge in Shadow AI Risks in Enterprises
  • by: Source Logo
  • |
  • August 5, 2025

Menlo Security’s 2025 Report: How AI is Shaping the Modern Workspace reveals a 50% increase in web traffic to generative AI (GenAI) sites, reaching 10.53 billion visits in January 2025. The report, based on telemetry data from global organizations, underscores the rapid adoption of GenAI, a 68% surge in shadow AI usage, and growing risks of data leakage, emphasizing the need for robust AI governance in enterprises.

Quick Intel

  • Web traffic to GenAI sites surged 50% to 10.53 billion visits in January 2025.

  • 68% of employees use free-tier AI tools, with 57% inputting sensitive data.

  • 155,005 copy and 313,120 paste attempts logged, risking data exposure.

  • Over 6,500 GenAI domains and 3,000 apps increase scam vulnerabilities.

  • Americas lead in AI traffic; Asia-Pacific shows strong GenAI adoption.

  • Robust AI governance and DLP policies are critical to mitigate risks.

Rapid Growth in Generative AI Adoption

The 2025 report documents a 50% spike in web traffic to GenAI sites, rising from 7 billion visits in February 2024 to 10.53 billion in January 2025, with 80% of access occurring through browsers. This reflects the widespread integration of GenAI tools in enterprise workflows, driven by their ability to enhance productivity. However, the report highlights that this rapid adoption comes with significant security challenges, particularly from shadow AI usage.

Shadow AI and Data Leakage Risks

A critical finding is that 68% of employees are using free-tier AI tools, such as ChatGPT, through personal accounts, with 57% inputting sensitive company data. The report recorded 155,005 copy and 313,120 paste attempts in a single month, indicating a high risk of unintentional data exposure. These actions, often performed to streamline work, underscore the urgent need for organizations to implement robust data loss prevention (DLP) policies to safeguard sensitive information.

Proliferation of AI Domains and Apps

The report identifies over 6,500 GenAI domains and 3,000 apps, creating a complex landscape that increases vulnerability to scams. Malicious actors exploit this proliferation to create fake websites that deliver ransomware, posing significant threats to enterprise security. The Menlo Secure Cloud Browser, powered by HEAT Shield AI, is positioned as a solution to counter these evolving AI-driven threats.

Regional Trends in AI Adoption

The Americas account for the highest volume of AI traffic, while the Asia-Pacific region, particularly China (75%) and India (73%), shows strong GenAI adoption. In contrast, EMEA lags due to stricter regulatory frameworks, such as the impending EU AI Act. These regional differences highlight the need for tailored AI governance strategies to address varying regulatory and adoption landscapes.

Urgent Need for AI Governance

“The numbers don’t lie; AI adoption is exploding and essential in the modern workspace. However, without clear governance, this rapid growth can create serious risks around data leakage,” said Devin Ertel, Chief Information Security Officer at Menlo Security. “Governance is about providing employees with safe, secure, and responsible ways to use GenAI, and ensuring that sensitive corporate data isn’t inadvertently exposed or lost.”

Menlo Security emphasizes the importance of adopting sanctioned AI tools, enforcing stringent DLP policies, and implementing zero trust access to mitigate risks from BYOD and unmanaged devices. As AI-driven threats grow, these measures are critical to ensuring secure and responsible AI use in enterprises.

 

About Menlo Security

Menlo Security protects organizations from cyber threats that attack web browsers. Menlo Security’s patented Cloud-Browser Security Platform scales to provide comprehensive protection across enterprises of any size, without requiring endpoint software or impacting the end user-experience. Menlo Security is trusted by major global businesses, including Fortune 500 companies, eight of the ten largest global financial services institutions, and large governmental institutions. The company is backed by Vista Equity Partners, Neuberger Berman, General Catalyst, American Express Ventures, Ericsson Ventures, HSBC, and JPMorgan Chase. Menlo Security is headquartered in Mountain View, California. 

  • CybersecurityGenerative AIShadow AIData SecurityAI Governance
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