Shadow AI
The Hidden Risk in Your Enterprise
Employees are using AI tools that IT doesn't know about—exposing sensitive data, violating compliance requirements, and creating security blind spots.
of employees use AI in ways that violate company policies
KPMG Shadow AI Report, 2025
have made mistakes at work due to AI errors
KPMG Shadow AI Report, 2025
rely on AI output without verifying accuracy
KPMG Shadow AI Report, 2025
The Growing Threat
of cybersecurity leaders suspect or have confirmed unauthorized AI tools in their organizations
Gartner, 2024
of enterprises projected to experience security or compliance breaches due to Shadow AI by 2030
Gartner, 2024
average cost of breaches involving shadow data—20% longer to contain
IBM Cost of Data Breach Report, 2024
The Risks of Uncontrolled AI
Shadow AI creates vulnerabilities across multiple dimensions of your organization
Data Security Risk
Unauthorized AI tools may transmit, store, or process sensitive information on third-party servers without proper encryption or access controls, increasing the risk of data breaches.
Compliance Violations
Unapproved AI tools can lead to violations of data protection regulations such as GDPR, HIPAA, or CCPA, potentially resulting in significant fines, lawsuits, and reputational damage.
Operational Disruptions
AI tools that haven't been tested within the corporate IT environment may conflict with enterprise systems, produce inaccurate results, or malfunction in critical workflows.
Competitive & IP Risk
Employees inadvertently sharing proprietary code, strategies, or trade secrets with public AI tools creates competitive intelligence risks and potential IP exposure.
Why Shadow AI Happens
Employees want to be productive
AI tools offer immediate productivity gains. When official channels are slow or non-existent, employees find their own solutions—often without understanding the risks.
IT can't keep up with demand
The pace of AI innovation outstrips traditional IT procurement and security review processes, creating a gap between what's available and what's approved.
Blocking doesn't work
When organizations block AI tools, employees find workarounds—using personal devices, VPNs, or simply lying about their usage. The result: zero visibility and even greater risk.
Don't Block AI—Channel It Safely
The solution isn't to ban AI—it's to provide a secure, governed platform that's better than the risky alternatives. One that employees will actually want to use.
Sources
Gartner (via IT Pro)
"40% of enterprises will experience Shadow AI breaches by 2030" (2024)
View source