Blackfog: Shadow AI Growing as an Enterprise Risk

Blackfog, a leader in AI security and anti-data exfiltration (ADX) technology, has released a new research report on the threat of shadow AI. 

Unapproved AI usage increases as half of respondents say they rely on free versions of tools

The report, which surveyed 2,000 respondents, found that 86 percent of employees use AI tools at least weekly for work-related tasks in order to meet deadlines.

Further, about 34 percent admit to using free versions of company-approved AI tools, raising concerns about where sensitive corporate data is stored, processed, and accessed. 

Employees are increasingly utilizing shadow AI in the workplace – using unapproved AI tools to enhance their productivity.

The report highlights that 60 percent of employees would take risks to meet deadlines, and 58 percent rely on free versions that may lack enterprise-grade security, data governance, and privacy protections. 

Additionally, 63 percent of respondents said it’s acceptable to use AI tools without IT oversight if no company-approved option is provided.

Risk tolerance amongst employees a growing concern for security teams

“This research is a stark indication not only of how widely unapproved AI tools are being used, but also the level of risk tolerance amongst employees and senior leaders,” said Dr. Darren Williams, the CEO and founder of Blackfog. 

“This should raise red flags for security teams and highlights the need for greater oversight and visibility into these security blind spots. AI is already embedded in our working world, but this cannot come at the expense of the security and privacy of the datasets on which these AI models are trained,” Williams continued.

Senior-level leaders more likely to accept risks as businesses chase productivity 

To add to concerns about shadow AI, 21 percent of respondents said they believe their employer would “turn a blind eye” to the use of unapproved AI tools as long as work is completed on time.

Additional key findings include:

• Senior-level leaders are more likely to accept risks: 69 percent of respondents at the President or C-Suite level and 66 percent of those at the Director or Senior VP level believe that speed is more important than privacy or security.
  • Meanwhile, 37 percent in administrative roles and 38 percent in junior executive positions share that same view.
• Sensitive corporate data is being shared on unsanctioned AI tools: About one-third (33 percent) of employees said they have shared research or datasets, while more than a quarter (27 percent) have shared employee data, such as staff names, payroll, or performance information. Nearly a quarter (23 percent) have also shared financial statements or sales data.
• Third-party integrations heighten risk: 51 percent of employees admit to connecting or integrating AI tools with other work systems or apps without IT department approval or oversight.

ADX Vision for shadow AI

Late last year, Blackfog released a new solution to address the risks posed by shadow AI – ADX Vision.

This new capability for the ADX Platform secures every endpoint and the LLM interactions happening within them.

The capability operates directly on the device, detecting shadow AI activity in real time and preventing unauthorized data movement while automatically enforcing governance policies without disrupting productivity.

“Preventing data exfiltration has been at the core of our mission from day one, and we’ve consistently adapted our technology to stay ahead of emerging threats,” said Dr. Williams. “ADX Vision is the next step in that journey, offering unmatched visibility into shadow AI activity so organizations can protect their data with confidence.”

Spyglass MTG has also recently launched a new framework to help organizations adopt, govern, and scale AI securely. Read more about AI Navigator and how it helps organizations connect trusted enterprise data to AI initiatives.