Businesses today rely on an ever-expanding range of applications, cloud services, and AI tools to stay competitive. However, not all of these tools are sanctioned by IT. Employees frequently turn to unauthorized software—whether it’s a personal file-sharing app, an AI-powered chatbot, or a cloud storage solution—to streamline their workflow.
This unapproved tech, known as Shadow IT, presents major cybersecurity risks, exposing businesses to data breaches, compliance violations, and security blind spots. With the rapid adoption of AI-driven tools, these risks are only intensifying.
For business leaders, IT teams, and security providers, the challenge is clear:
1. How do we leverage AI’s potential while ensuring security and compliance?
2. How do we prevent sensitive data from being exposed in external AI models?
3. How do we manage AI risks without slowing down innovation?
Shadow IT in the AI Era: A Growing Business Risk
According to Forrester’s 2024 AI predictions report, 60% of employees will use their own AI tools at work, often without IT approval. While AI tools like ChatGPT, Gemini and Perplexity AI improve productivity, they also introduce serious security and compliance risks when used outside of corporate policies.
Even as AI platform budgets triple, Forrester warned that these investments won’t be enough to control unauthorized AI usage. The result? Employees will continue using AI models without oversight, increasing the risk of data exposure, compliance gaps, and governance challenges.
This shift marks the beginning of the "era of intentional AI", where organizations must focus on managing AI-powered Shadow IT and driving business value while mitigating risks.
Key AI & Shadow IT Trends:
✔ 60% of employees will use personal AI tools at work, bypassing security controls.
✔ AI platform budgets will triple as businesses invest in scalable AI solutions.
✔ 85% of companies will integrate open-source AI models, adding new security concerns.
✔ 40% of enterprises will proactively invest in AI governance for compliance.
✔ Insurers will offer “AI hallucination insurance”, covering risks from AI-generated errors.
Why Shadow IT & AI Misuse Create Security Risks
For businesses and IT service providers, Shadow IT isn’t just a productivity concern—it’s a direct security and compliance threat.
1. Unmonitored Data Sharing
Employees often upload sensitive business data into unsecured third-party AI tools. Without clear policies and security controls, proprietary data may end up in external AI models—posing significant risks.
2. Compliance & Regulatory Violations
Shadow IT bypasses security policies, exposing businesses to GDPR, PCI DSS, and ISO 27001 violations. While Forrester predicted in 2024 that 40% of enterprises would invest in AI governance, this number continues to grow as regulatory bodies worldwide tighten AI compliance standards.
3. Increased Phishing & Credential Theft
Employees often reuse passwords across unauthorized AI applications, creating vulnerabilities that cybercriminals can exploit. Phishing attacks are increasingly targeting Shadow IT users, mimicking login pages for unauthorized apps.
4. Lack of IT Visibility
If IT teams and security providers aren’t aware of unauthorized software in use, they can’t patch vulnerabilities, enforce security controls, or mitigate risks. With 85% of enterprises integrating open-source AI models, visibility into AI usage is critical.
How Businesses & IT Service Providers Can Take Control of AI & Shadow IT
To effectively mitigate AI security risks and Shadow IT threats, businesses and IT service providers must adopt a structured approach to governance, employee education, and security monitoring.
usecure offers a Human Risk Management platform designed to reduce human error in cybersecurity. By integrating automated security training, policy management, phishing simulations, and dark web monitoring, organizations can proactively manage the risks associated with AI adoption and Shadow IT.
1. Educate Employees on AI & Shadow IT Risks
Many employees don’t realize the security risks of inputting sensitive business data into AI tools or using unapproved software. Tailored cybersecurity awareness training ensures that users understand the risks and follow security best practices.
✔ Conduct interactive, role-based training on AI & Shadow IT risks.
✔ Explain why AI security policies exist and how they protect the business.
✔ Provide ongoing security awareness programs to reinforce best practices.
🔹 How usecure helps:
2. Strengthen AI & IT Security Policies
Organizations need clear policies that define approved AI tools and cloud applications, ensure compliance, and prevent unauthorized software use.
✔ Define which AI tools and cloud apps are approved for business use.
✔ Assign responsibility for monitoring new applications.
✔ Establish security controls and compliance requirements for new software adoption.
🔹 How usecure helps:
3. Proactively Monitor for AI & Credential Breaches
Unauthorized AI tools often lead to credential leaks, making it critical to continuously monitor for compromised accounts.
✔ Scan the dark web for leaked corporate credentials.
✔ Receive real-time alerts when exposed accounts are detected.
✔ Reset breached passwords before attackers exploit them.
🔹 How usecure helps:
4. Simulate Phishing Attacks on AI & Shadow IT Users
With AI-powered phishing attacks on the rise, businesses and IT teams must proactively test employee responses and strengthen phishing awareness.
✔ Run automated phishing simulations to test employee responses.
✔ Simulate fake login requests for unauthorized AI tools.
✔ Identify at-risk employees and reinforce security awareness.
🔹 How usecure helps:
5. Gain Actionable Insights into Employee Cyber Risk
Understanding which employees pose the highest security risks is crucial for businesses and IT service providers managing AI adoption. Risk scoring and human risk reports provide data-driven insights to guide security strategies.
✔ Assess employee cyber risk levels based on their behavior.
✔ Track security awareness performance metrics across teams.
✔ Use risk insights to prioritize security training and enforcement.
Learn more about usecure's Human Risk Report.
Why AI & Shadow IT Require a Proactive Approach
Forrester’s 2024 AI report highlighted a shift from AI hype to AI pragmatism. In 2025, businesses and IT service providers must now focus on governing AI responsibly while protecting against the cybersecurity risks introduced by Shadow IT.
Those who act now—by integrating security awareness training, policy enforcement, phishing simulations, and dark web monitoring—will lead the way in securing the AI-driven future.
🚀 Are you ready to take control of AI & Shadow IT security?
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