Rise in ‘Shadow AI’ tools raising security concerns for UK

But a worryingly low proportion of respondents expressed an understanding or concern over the risks of using unapproved external AI assistants.

Just a third (32%) said they were concerned about the privacy of company or customer data inputted into consumer AI tools, and only 29% were concerned about the security of their organisation’s IT systems.

Employees report that they turn to Shadow AI tools for their ease and familiarity. Four-in-ten (41%) say it’s what they’re used to in their personal life, while 28% report that their company doesn’t provide a work-approved option.

“UK workers are embracing AI like never before, unlocking new levels of productivity and creativity. But enthusiasm alone isn’t enough,” says Darren Hardman, CEO, Microsoft UK & Ireland.

“Businesses must ensure the AI tools in use are built for the workplace, not just the living room.

“The message is clear: only enterprise-grade AI delivers the functionality that employees want, wrapped in the privacy and security every organisation demands.”

The use of Shadow AI poses security risks because sensitive company or customer data may not be protected effectively, leaving organisations vulnerable to data leaks, regulatory non-compliance, and increased risk of cyber-attack.

AI assistants go mainstream

Workplace users of generative AI assistants report saving 7.75 hours a week on average across various admin tasks.

Dr Chris Brauer, Director of Innovation at Goldsmiths, University of London, estimates that this equates to 12.1 billion hours saved across the UK economy each year – worth around £208 billion of workers’ time.

AI use is most common among employees in IT & Telecoms, Sales, Media & Marketing, Architecture & Engineering, and Finance & Insurance sectors.