MIT’s The GenAI Divide: State of AI in Business 2025 report shared that over 90% of employees in surveyed businesses use personal AI tools despite only 40% of those businesses investing in AI subscriptions for workplace use. Unsanctioned AI, shadow AI, has quietly taken root in many businesses. Driven by productivity and ease, teams often bypass official AI systems when tools feel sluggish, clunky, or simply inadequate. The trouble is, when employees turn to external AI solutions without safeguards, they may be unwittingly exposing data and a business’ internal systems to bad actors. Recognising why shadow AI occurs is as important as detecting it. Once the root causes are known, these insights can be used to plug gaps and deploy AI that is needed in the workplace.
Why Shadow AI Occurs
Understanding why shadow AI occurs is the first step to managing it …