top of page

Rise Of ‘Shadow AI’ Sparks Security And Compliance Concerns



A new survey of 500 senior decision-makers within UK businesses, commissioned by Studio Graphene, has found:


  • Almost half (48%) know or suspect that employees in their organisation are using AI tools that have not been officially approved.

  • 64% are concerned unregulated AI use could lead to data security or compliance risks.

  • 34% of businesses do not have formal policies or guidelines governing AI usage, and 37% have not communicated to staff their expectations for how AI should be used.

  • Two thirds of business leaders in the UK are worried about potential data security and compliance risks stemming from employees’ unregulated use of artificial intelligence (AI) tools, according to new research from Studio Graphene.

 

The digital product studio commissioned Censuswide to survey 500 managers, directors and C-suite executives within UK businesses. It found that almost half (48%) know or suspect that employees in their organisation are using AI tools that have not been officially approved – this rises to 54% for larger companies (over 250 employees).

 

Shadow AI refers to the use of unauthorised AI tools and services, and 48% of the leaders surveyed admitted that managers in their organisation have limited visibility of how staff use AI in their day-to-day work. Just under two thirds (64%) are concerned, however, that unregulated AI use could lead to data security or compliance risks.

 

Despite these concerns, Studio Graphene’s research also revealed just how many UK businesses have not formally created and communicated AI policies or guidelines. More than a third (34%) of organisations said they do not have formal policies or guidelines governing AI usage, while even more (37%) have failed to communicate to staff their expectations for how AI should be used.

 

Elsewhere, the study showed that while three fifths (59%) of UK business leaders are worried that an over-reliance on AI could lead to employees making mistakes, 61% admitted that frontline staff are more comfortable with using AI in their day-to-day work than the organisation's senior leadership team.

 

Ritam Gandhi, director and founder of Studio Graphene, said:

“Shadow AI isn’t the result of malice or even carelessness. It’s often the result of a disconnect between senior leadership and their teams – if the organisation is sanctioning or investing in AI tools that are not working well or delivering value, employees will turn to unsanctioned alternatives that will enable them to do their jobs better."

 “It all comes down to precise strategy and effective integration. Businesses need a clear picture of where AI can make a meaningful impact and then, crucially, they have to embed it effectively into workflows so the AI can inform decisions or improve processes."


"Without that, AI projects are doomed to fail, meaning employees will continue to source their own AI tools – and that undoubtedly creates risks where data privacy, security and regulatory compliance are concerned.”

 


 


Most Read

New Wellbeing Programme Sees Aberdeenshire Business Branch Out

New Wellbeing Programme Sees Aberdeenshire Business Branch Out

Two former teachers from Banchory, Aberdeenshire have built a horticultural design and care business, turning an idea into a full-time venture, with Business Gateway.

Black Talent Awards Unveils 2026 Finalists

Black Talent Awards Unveils 2026 Finalists

The Black Talent Awards (BTA) has unveiled its 2026 finalists as the national platform prepares to mark its fifth anniversary, celebrating five years of recognising Black professional achievement, leadership, entrepreneurship and impact across the UK.

Rising Costs And Work-Life Balance Are Driving Britain’s Home Business Boom

Rising Costs And Work-Life Balance Are Driving Britain’s Home Business Boom

New research from garden building specialists Dunster House explored the booming backyard business economy, with surveying exclusively people who operate from their garden or home.

Categories

Apr 9
2 min read


A new survey of 500 senior decision-makers within UK businesses, commissioned by Studio Graphene, has found:


  • Almost half (48%) know or suspect that employees in their organisation are using AI tools that have not been officially approved.

  • 64% are concerned unregulated AI use could lead to data security or compliance risks.

  • 34% of businesses do not have formal policies or guidelines governing AI usage, and 37% have not communicated to staff their expectations for how AI should be used.

  • Two thirds of business leaders in the UK are worried about potential data security and compliance risks stemming from employees’ unregulated use of artificial intelligence (AI) tools, according to new research from Studio Graphene.

 

The digital product studio commissioned Censuswide to survey 500 managers, directors and C-suite executives within UK businesses. It found that almost half (48%) know or suspect that employees in their organisation are using AI tools that have not been officially approved – this rises to 54% for larger companies (over 250 employees).

 

Shadow AI refers to the use of unauthorised AI tools and services, and 48% of the leaders surveyed admitted that managers in their organisation have limited visibility of how staff use AI in their day-to-day work. Just under two thirds (64%) are concerned, however, that unregulated AI use could lead to data security or compliance risks.

 

Despite these concerns, Studio Graphene’s research also revealed just how many UK businesses have not formally created and communicated AI policies or guidelines. More than a third (34%) of organisations said they do not have formal policies or guidelines governing AI usage, while even more (37%) have failed to communicate to staff their expectations for how AI should be used.

 

Elsewhere, the study showed that while three fifths (59%) of UK business leaders are worried that an over-reliance on AI could lead to employees making mistakes, 61% admitted that frontline staff are more comfortable with using AI in their day-to-day work than the organisation's senior leadership team.

 

Ritam Gandhi, director and founder of Studio Graphene, said:

“Shadow AI isn’t the result of malice or even carelessness. It’s often the result of a disconnect between senior leadership and their teams – if the organisation is sanctioning or investing in AI tools that are not working well or delivering value, employees will turn to unsanctioned alternatives that will enable them to do their jobs better."

 “It all comes down to precise strategy and effective integration. Businesses need a clear picture of where AI can make a meaningful impact and then, crucially, they have to embed it effectively into workflows so the AI can inform decisions or improve processes."


"Without that, AI projects are doomed to fail, meaning employees will continue to source their own AI tools – and that undoubtedly creates risks where data privacy, security and regulatory compliance are concerned.”

 


 


Most Read

New Wellbeing Programme Sees Aberdeenshire Business Branch Out

New Wellbeing Programme Sees Aberdeenshire Business Branch Out

Two former teachers from Banchory, Aberdeenshire have built a horticultural design and care business, turning an idea into a full-time venture, with Business Gateway.

Black Talent Awards Unveils 2026 Finalists

Black Talent Awards Unveils 2026 Finalists

The Black Talent Awards (BTA) has unveiled its 2026 finalists as the national platform prepares to mark its fifth anniversary, celebrating five years of recognising Black professional achievement, leadership, entrepreneurship and impact across the UK.

Rising Costs And Work-Life Balance Are Driving Britain’s Home Business Boom

Rising Costs And Work-Life Balance Are Driving Britain’s Home Business Boom

New research from garden building specialists Dunster House explored the booming backyard business economy, with surveying exclusively people who operate from their garden or home.

Categories

Accessible Clothing Project Receives Funding Boost

Accessible Clothing Project Receives Funding Boost

People living with disabilities and age-related mobility challenges will be able to enjoy improved independence thanks to a project that adapts everyday clothing to meet their individual needs.

Hendy Group Launches $10,000 Community-Led Campaign At Ford Dealerships

Hendy Group Launches $10,000 Community-Led Campaign At Ford Dealerships

Hendy Group has launched a new community-led grant giving campaign across its 10 Ford sites to support local charities.

Lamont Pridmore Calls On Parents To Consider The Cost Of University

Lamont Pridmore Calls On Parents To Consider The Cost Of University

With university fees of £9,790 per year in the UK and average monthly living costs whilst studying hitting £1,142 per month, Lamont Pridmore is calling on parents of future students to plan for these costs in advance.

Recent Posts

bottom of page