A recent study by Software AG reveals that half of all employees are using unauthorised AI tools, commonly referred to as Shadow AI.
The research, which surveyed 6,000 knowledge workers, highlights the growing use of non-company issued AI tools across a range of industries. Shadow AI is gaining significant traction, with 46 percent of workers stating they would not give up these tools, even if their organisation banned them.
The findings indicate a pressing need for companies to develop robust AI strategies to manage the increasing use of personal AI tools. Without a comprehensive approach, organisations risk exposing themselves to data breaches, cyberattacks, and regulatory violations.
The Rise of AI in the Workplace
According to the study, AI usage among knowledge workers is already widespread, with 75 percent of workers using some form of AI in their daily tasks. Steve Ponting, Director at Software AG, noted that 2024 will see an even larger uptake of generative AI tools (GenAI), predicting that 90 percent of knowledge workers will soon be using AI regularly.
Ponting explained that AI’s popularity is driven by its time-saving benefits (83 percent), ease of use (81 percent), and ability to boost productivity (71 percent). As AI becomes more entrenched in the workplace, the associated risks – such as data leakage and cybersecurity threats – are also likely to increase, stressing the importance of early preparation.
The study also found that nearly half of respondents (47 percent) believe using AI tools will lead to faster career progression, suggesting that AI’s role in job performance and success is only set to grow.
The AI Utility Gap
The survey reveals that many workers prefer using their own AI tools because they value the independence these tools offer. Fifty-three percent of respondents said they prefer to use their own software, while 33 percent said they do so because their organisation’s IT department does not provide the necessary AI solutions.
This highlights an important issue for businesses: if they want employees to use authorised tools, they need to ensure those tools meet the needs of the workforce. Providing the right tools will likely reduce Shadow AI usage, while also giving companies better control over data security and governance.
Risk Management and Employee Awareness
Despite the rising use of AI tools, employees are aware of the potential risks associated with their choices. A majority of respondents identified cybersecurity (72 percent), data governance (70 percent), and inaccuracies in AI-generated information as concerns. However, fewer than 30 percent take precautions such as running security scans (27 percent) or checking data usage policies (29 percent).
J-M Erlendson, Global Evangelist at Software AG, expressed concern that many employees are not adequately trained to mitigate the risks posed by Shadow AI. He emphasised that regular AI users tend to be more familiar with risk management protocols compared to occasional users, but with AI becoming more widespread, less experienced users are also more likely to expose their organisations to risks.
Erlendson pointed out that businesses need to adopt a more transparent and structured approach to managing AI tools. “Shadow AI is not going anywhere, but it is supercharging the operational chaos already engulfing many organisations,” he said. To better incorporate AI, companies should understand which tools their employees prefer and offer proper training to ensure safe usage.