How many employees are quietly turning to unapproved artificial intelligence tools, risking compliance and data security in the process?
A 2025 report highlights that roughly 33% of workers use AI without informing their managers, raising serious questions about cybersecurity, compliance, and trust. Experts call this “shadow AI.”
On online forums, workers admit to copying meeting transcripts and client notes into AI tools to save time. One employee at a large manufacturing firm said their teams use an internal app to turn transcripts into minutes and action points. Others warned that companies should block risky tools or train staff to avoid leaking sensitive data.
Ryan Zhang, a workplace productivity expert and CEO of Notta, says shadow AI is less about rule-breaking and more about survival.
“Shadow AI became a survival in workplaces where people feel pressured to do more with less,” he said. “The real risk isn’t AI use itself, but the secrecy that creates blind spots for IT teams and opens doors to data breaches. When you ban everything, people just find workarounds, but when you guide AI use strategically, you turn potential liability into a competitive advantage.”
Zhang provides five key risks of shadow AI in the workplace:
1. Data leaks: Sensitive documents copied into public tools may end up stored or exposed.
2. Compliance breaches: Using unapproved AI can violate privacy or industry regulations.
3. Cybersecurity gaps: Hidden tools create blind spots that IT teams can’t monitor or secure.
4. Workflow breakdowns: Different teams using different AI tools secretly can cause confusion and slow progress.
5. Loss of trust: When managers discover hidden AI use, it can damage transparency between staff and leadership.
“Shadow AI isn’t going away because employees will keep finding shortcuts if they feel unsupported,” Zhang said. “The real test for companies is whether they respond with fear or with foresight. If leaders choose to ban and punish, they’ll drive AI use further underground. But if they educate, set guardrails, and lead by example, they can turn hidden habits into safer, smarter, and more productive ways of working.”
Photo credit: phloxii/Shutterstock
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