A new wave of 'Shadow AI' is worrying workplaces

Date:
Mon, 13 Oct 2025 14:43:10 +0000

Description:
New Microsoft research shows that the use of shadow AI is once again on the rise.

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tools are being used in workplaces without permission The tools pose threats to business and customer data if unsanctioned A second wave of shadow AI is booming in the UK

Shadow AI tools, or AI tools that employees use without the permission of their company, present a range of security risks to organisations.

But, that doesnt stop employees from using unsanctioned AI tools in the pursuit of meeting quotas, targets, and deadlines.

New research from Microsoft has found that the UK has seen a significant rise in the use of shadow AI, with 71% of UK employees using an unsanctioned AI tool at least once, and over half (51%) continuing to do so week on week. The next wave of shadow AI

There is no denying that generative AI tools offer significant time savings and productivity boosts to businesses , but if businesses dont invest in
tools and provide the environment for them to be used, employees often take the initiative. For example, Microsoft found that 28% of employees are not provided with a work-approved AI tool.

From writing emails and responding to internal communications, AI tools are excellent for turning what could be an angry ranting lecture into a well-rounded and corporate approved expression of concern. In fact, Microsoft's research found that 49% of survey respondents use AI tools for this very purpose.

Second to this, AI tools are being used to draft reports and presentations (40%), and to help with finance related tasks (22%). But many employees are unaware of the risks of using AI tools without company approval.

Only 32% expressed concern about company and customer data being fed into AI tools, and worryingly, just 29% had any worry about the use of shadow AI affecting IT security at their workplace.

If customer or company data is entered into an AI tool without being sanitised, the prompts it was included within could be reused to train the AI further and potentially spat back out to nefarious actors with cleverly crafted prompts.

Confidence in AI tools is rising however, with 57% of employees expressing positive emotions about AI in the workplace. More and more companies are developing AI strategies, with the benefits being felt by both businesses and employees.

UK workers are embracing AI like never before, unlocking new levels of productivity and creativity. But enthusiasm alone isnt enough, says Darren Hardman, CEO, Microsoft UK & Ireland.

Businesses must ensure the AI tools in use are built for the workplace, not just the living room. The message is clear: only enterprise-grade AI delivers the functionality that employees want, wrapped in the privacy and security every organisation demands. You might also like Take a look at our roundup of the best AI writers Get your data off the web with the best data removal services AI is dominating UK businesses, but isn't yet driving customer value



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Link to news story: https://www.techradar.com/pro/security/a-new-wave-of-shadow-ai-is-worrying-wor kplaces


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