Imagine a customer service representative uses an unauthorized chatbot to answer a client question. It feels more productive, but weeks later, that chatbot company reports a data leak and your client’s information is now compromised. This is an example of shadow AI:the use of unapproved AI tools in the workplace. It’s happening everywhere across industries.

A recent IBM-sponsored study reveals that while 80% of American office workers use AI in their roles, only 22% rely exclusively on tools provided by their employers. The rest mix personal and enterprise apps or skip enterprise tools entirely. This creates exposure to data leaks, compliance gaps, and misinformation. And the risk is real — IBM’s 2025 Cost of a Data Breach Report shows companies with high levels of shadow AI faced $670,000 higher breach costs compared to those with little or none.

How to balance employee AI needs with risk compliance

Employees want to be more productive with AI tools, but if enterprise tech feels clunky or isn’t meeting their needs, they’ll find alternatives. Blocking public AI tools outright often drives behavior underground, leaving security teams blind. A better approach is to provide secure, approved options that meet user needs and embed governance from day one.

Video: Don’t Say No, Say How: Shadow AI, BYOD, & Cybersecurity Risks
Across industries, companies are showing what responsible AI adoption looks like. Even in Aerospace, IBM helped Lockheed Martin replace 46 disconnected systems with one unified data platform, eliminating silos, creating a secure foundation for internal AI innovation — all while maintaining rigorous security and compliance standards.

IBM leads by example through its “Client Zero” approach, applying its own technologies internally. One standout is IBM’s AskHR digital assistant, which has processed more than 10 million interactions, automated over 765,000 tasks, and resolved 94% of HR inquiries. This initiative has lowered operating costs and created new roles, proving that AI can drive productivity when paired with robust governance and security.

A practical AI playbook for leaders

What can leaders start doing today to embrace AI in a risk-controlled way?

1. Assess AI usage to uncover shadow AI and understand risk.
2. Offer secure alternatives, approved AI tools, or private instances.
3. Embed governance to put guardrails around AI from start to finish.
4. Train employees on risks and show how approved tools deliver the same speed and simplicity.
5. Monitor and audit regularly to keep everything above board.

As mentioned above, training and upskilling are critical. In fact, 60% of employees surveyed say hands-on learning would boost their AI usage. It’s not about replacing human talent. It’s about augmenting it responsibly. 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.

With 80% of today’s workers expecting AI to play an important role in their work over the next 3–5 years and 50% labeling it as very important or even essential, organizations must take steps now to ensure they’re using it properly.

Generative AI is a powerful tool — but only if deployed responsibly. Get started today on security and compliance that can supercharge your AI productivity gains — and help you avoid the real risks of allowing shadow AI to continue in your company.