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Shadow AI becomes leadership’s blind spot and brand's risk

The news: More than half of US employees are using unapproved AI tools, with managers knowing but not caring—showing both security risks and organizational dysfunction.

  • Of the 59% of employees who are using unapproved AI tools, 57% state that their direct manager is aware and OK with it, per Cybernews.
  • Three-quarters of those users are sharing potentially sensitive information with AI tools.

Trendspotting: Shadow AI use, or employees adopting AI tools without IT team approval, is on the rise as organizations push AI initiatives forward without providing clear training, guidelines, or access to approved tools. Nine out of 10 IT leaders are worried about shadow AI use, per Komprise.

Digging in: While 77% of companies have official AI policies, per Cybernews, only half (52%) provide approved tools. And just one-third of employees say those tools meet their job requirements. The limited effectiveness of sanctioned tools drives employees to use what’s available elsewhere to expedite work and deliver results.

Pressure to perform is outweighing caution, as 64% understand the threat of data breaches and 47% recognize the risk of inaccurate or biased outputs.

The executive blindspot: Organizations are racing to integrate AI into content creation, data analysis, and marketing workflows without considering how the technology is being used on a day-to-day basis across teams.

While shadow AI use is often perceived as a ground-level issue, the problem goes all the way to the top: 93% of executives are using AI tools that aren't approved. This kind of tacit approval means leaders are enabling the very behavior IT teams are trying to prevent.

It’s a contradiction that can undercut company policies, weaken compliance efforts, and put sensitive company data at risk.

Our take: Shadow AI use is a brand risk, not just an IT problem, and is often a workaround for poor internal communication or underinvestment in training. It puts brand equity, company alignment, and company security on the line. CMOs should lead efforts to:

  • Define brand-safe AI tools for creative and content teams.
  • Research and outline which approved tools are ideal for marketing-specific tasks.
  • Push for clear, usable policies that align with the company’s real workflows.
  • Collaborate with IT and HR to train on AI use, not just police it.

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