Shadow AI, the use of unauthorized artificial intelligence tools in the workplace, is emerging as a significant risk for businesses. This practice can lead to data leaks, compliance issues, and misinformation.
A recent IBM-sponsored study found that 80% of American office workers use AI at work, but only 22% rely solely on employer-provided tools. The rest use a mix of personal and enterprise applications or avoid official tools altogether. According to IBM’s 2025 Cost of a Data Breach Report, companies with high levels of shadow AI experienced $670,000 higher breach costs compared to those with little or none.
Employees often turn to unapproved AI solutions when enterprise technology does not meet their needs. Blocking public AI tools may push this behavior out of sight, making it harder for security teams to monitor risks. Experts suggest offering secure, approved alternatives and embedding governance from the start.
IBM has worked with organizations such as Lockheed Martin to consolidate systems and create secure platforms for internal AI innovation while maintaining compliance standards. Internally, IBM uses its “Client Zero” approach by deploying its own technologies first. For example, the AskHR digital assistant has handled over 10 million interactions and automated more than 765,000 tasks while resolving 94% of HR inquiries.
Leaders are encouraged to take several steps: assess current AI usage; provide secure alternatives; implement governance measures; train employees about risks; and regularly audit systems. Training is seen as critical—60% of surveyed employees say hands-on learning would increase their use of AI tools.
“Organizations that combine governance, security, and enablement will unlock AI’s full potential while protecting the data and trust of their clients and business partners,” according to the report.
With most workers expecting AI to become increasingly important in coming years, businesses are urged to act now to ensure responsible adoption.
The Austin Chamber of Commerce guides efforts aimed at enhancing the regional economy through collaboration and advocacy initiatives that support business growth and community partnerships (official website). The organization promotes inclusive development by fostering an environment where local enterprises can thrive (official website).
