Executives Lead the Way in Widespread “Shadow AI” Use, Report Finds
A new report from UpGuard, released November 10th, reveals the pervasive use of unauthorized AI platforms – termed ”shadow AI” – across businesses in multiple sectors. The findings indicate that roughly one-quarter of workers now consider AI tools their moast trusted source of information, rivaling their managers and surpassing colleagues and search engines.this trust is notably high among employees in manufacturing, finance, and healthcare.
This reliance on AI is directly linked to increased shadow AI usage. UpGuard’s research demonstrates that employees who prioritize AI tools as their primary information source are significantly more likely to incorporate unapproved AI platforms into their daily workflows.
the issue isn’t limited to specific departments. Shadow AI is present across all corporate functions, though marketing and sales teams report higher usage rates compared to operations and finance. Surprisingly, the report highlights that executives exhibit the highest levels of regular shadow AI use, while mid-level and low-level employees demonstrate the highest overall usage rates (including periodic use).
A key finding for security teams is that employees aren’t using shadow AI out of ignorance; they believe their understanding of AI security allows them to manage the associated risks. UpGuard found a positive correlation between self-reported knowledge of AI security requirements and regular use of unapproved tools, suggesting increased awareness doesn’t necessarily translate to policy adherence.
This challenges the effectiveness of current security awareness training programs, which the report suggests “need new approaches in order to succeed.” Fewer than half of surveyed workers reported full knowledge and understanding of their company’s AI usage policies. Despite this, 70% of employees are aware of colleagues inappropriately sharing sensitive data with AI tools – a rate even higher among security leaders.
The report is based on data collected from two 2024 surveys encompassing 1,500 security leaders and general employees across the U.S., U.K., Canada, Australia, new Zealand, Singapore, and India.
