Skip to main content
  • Personal
  • Business
    Close
  • Select Region

      Select your region below to see curated info.

    • Global
    • India
    • MENA
  • Welcome, {{name}}
    Non-Member
    {{membership}} Membership Ends {{expiration_date}}
    MySHRM Dashboard
    • Sign In
    • accountSettings Account Settings
    • customerSupport Customer Support
    • Sign Out Sign Out
    HR is Evolving Fast!

    That’s why 340,000 HR pros and 95% of the Fortune 500 turn to SHRM for expert-backed guidance, tools, and trusted answers.

    Become a Member
    • accountSettings Account Settings
    • memberSupport Member Support
    • Sign Out Sign Out
    SHRM26 Annual Conference

    At SHRM26 join the global HR community that comes together not just to keep up — but to grow, connect, and move forward together. Register Today

SHRM
  • Membership
    • Membership

      As a SHRM Member®, you’ll pave the path of your success with invaluable resources, world-class educational opportunities and premier events.

      Membership Benefits
  • Certification
    • SHRM Certification

      Demonstrate your ability to apply HR principles to real-life situations.

      • How to Get Certified
      • Eligibility Criteria
      • Exam Fees & Options
      • SHRM-CP
      • SHRM-SCP
      • Which Certification is Best for Me?
      Prepare for the Exam
      • Exam Preparation
      • SHRM BASK
      • SHRM Learning System
      • Instructor-Led Learning
      • Self-Study
      Specialty Credentials

      Demonstrate targeted competence and enhance your HR credibility.

      PMQ

      Gain a deeper understanding and develop critical skills.

  • Events
    • India Events

      Demonstrate your ability to apply HR principles to real-life situations.

      • India Annual Conference
      • SHRM Tech Conference
      • SHRM Unconference
      MENA Events
      • MENA Annual Conference
      Global Events
      • US Annual Conference
      Webinars
  • Resources
    • Resources

      Stay up to date with news and leverage our vast library of resources.

      • HR Research
      • Latest News & Trends
      • Tools & Guides
      HR Topics
      • AI in the Workplace
      • Total Rewards
      • Inclusion & Diversity
      • Recruiting
      • HR Technology
      • Civility at Work
      • Workplace Violence Prevention
Become a Member
Renew
Rejoin Now
Renew
Close
  • Personal
  • Business
  • Membership
    back
    Membership
    • Membership

      As a SHRM Member®, you’ll pave the path of your success with invaluable resources, world-class educational opportunities and premier events.

      Membership Benefits
  • Certification
    back
    Certification
    • SHRM Certification

      Demonstrate your ability to apply HR principles to real-life situations.

      • How to Get Certified
      • Eligibility Criteria
      • Exam Fees & Options
      • SHRM-CP
      • SHRM-SCP
      • Which Certification is Best for Me?
      Prepare for the Exam
      • Exam Preparation
      • SHRM BASK
      • SHRM Learning System
      • Instructor-Led Learning
      • Self-Study
      Specialty Credentials

      Demonstrate targeted competence and enhance your HR credibility.

      PMQ

      Gain a deeper understanding and develop critical skills.

  • Events
    back
    Events
    • India Events

      Demonstrate your ability to apply HR principles to real-life situations.

      • India Annual Conference
      • SHRM Tech Conference
      • SHRM Unconference
      MENA Events
      • MENA Annual Conference
      Global Events
      • US Annual Conference
      Webinars
  • Resources
    back
    Resources
    • Resources

      Stay up to date with news and leverage our vast library of resources.

      • HR Research
      • Latest News & Trends
      • Tools & Guides
      HR Topics
      • AI in the Workplace
      • Total Rewards
      • Inclusion & Diversity
      • Recruiting
      • HR Technology
      • Civility at Work
      • Workplace Violence Prevention
Become a Member
Renew
Rejoin Now
Renew
  • Select Region

      Select your region below to see curated info.

    • Global
    • India
    • MENA
SHRM
mySHRM Login
  • MySHRM
    • Dashboard
    • Account
    • Logout
Close

  1. Workplace News & Trends
  2. Shadow AI: Preventing the Unsanctioned Use of AI at Work
Share
  • Linked In
  • Facebook
  • Twitter
  • Email

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vivamus convallis sem tellus, vitae egestas felis vestibule ut.


Error message details.

Copy button
Reuse Permissions

Request permission to republish or redistribute SHRM content and materials.


Learn More
Blog

Shadow AI: Preventing the Unsanctioned Use of AI at Work

SHRM Advisor

AI is becoming a significant part of how companies work today. Most organizations roll out new AI tools carefully, ensuring there’s a clear business case and that employees receive proper training. But something interesting is happening alongside these official efforts. Many employees, curious and eager to save time or boost productivity, are experimenting with AI tools on their own, even if the company hasn’t formally approved those tools.

This growing trend is often referred to as “shadow AI.” It demonstrates how quickly people are embracing new technology and finding innovative ways to utilize it in their daily work.

Concerningly, the unsanctioned use of generative AI tools has become widespread. Employees typically leverage them to ease their workloads, speed up day-to-day tasks, and improve creativity. The security risk organizations face due to "shadow AI" often goes unaccounted for. Equally worrisome is that the indiscriminate, unsanctioned use of AI increases the prevalence of low-quality, low-effort work, usually referred to as “workslop”.

This article examines the rise of unauthorized AI use in the workplace, its implications for organizations, and the measures leaders must take to prevent "shadow AI."

What is "Shadow AI"?

"Shadow AI" refers to the use of AI tools that are neither sanctioned nor formally introduced by employers. The practice may be more common among younger workers and digital natives; however, "shadow AI" is prevalent across demographics. 

The consensus among employees is that AI improves productivity, saves time, and lightens their workloads. Hence, many individuals decide to acquire and leverage AI tools at work without formal sanction from organizations or IT governance. Gartner's 2025 IT Roadmap for Cybersecurity predicts that by 2027, nearly 75% of employees will acquire and engage with technology without IT’s visibility. The rising phenomenon of "shadow AI" is a clear example of this prediction.

Why the Unsanctioned Use of AI at Work is Rising

Employees typically turn to AI to become more productive at work and improve their market value. Many others feel compelled to use AI due to pressure to deliver results or perhaps out of fear of being replaced.

The following myriad of reasons explain the rising prevalence of unsanctioned AI use:

  • Lack of clear direction: Some organizations encourage the use of AI, but do not provide guidelines and guardrails. Employees independently develop use cases and apply them to work, often indiscriminately, even where it doesn't make sense. However, they may not be forthcoming about it, leaving employers with no visibility or control over their AI use.

  • Efficiency gains: Employees may feel compelled to focus on getting work done efficiently. To do so, they may adopt unsanctioned AI tools that help meet deadlines, disregarding the fact that they pose security risks.

  • Increasing marketability: AI skills make employees more valuable in the current hiring market. If organizations take a cautious approach or delay skilling, employees may feel compelled to take charge of their own learning. Many likely invest in improving AI aptitude through courses and apply their learnings at work to gain hands-on experience. Ultimately, these AI skills may help them leverage high-paying positions.

  • Slow internal processes: Many employees believe that leadership's resistance to AI prevents them from availing themselves of its benefits. Rather than wait for formal rollouts, they choose to make independent decisions about AI usage. However, this may require that they be discreet about it to avoid consequences. 

  • Risk-awareness gap: It is likely that some employees don't understand the risks associated with unapproved AI tools or believe the risks don't apply to them.

  • Fear of displacement: Automation is expected to cut jobs, particularly entry-level roles. Entire management layers face the threat of being eliminated. Technologies are expected to evolve faster than people can adapt. Concerns about mass displacement due to AI are high in India. Corporate hype and relentless coverage of AI add to this anxiety. People are often led to believe that they risk falling behind if they don't urgently embrace AI. Therefore, many likely resort to AI to enhance the productivity and the quality of their outcomes whilst simultaneously developing practical skills. As such, the fear of becoming obsolete (FOBO) or being replaced is likely a notorious driver of unsanctioned AI use. 

  • Social risk: Employees also perceive social risks and criticism; they assume that openly using AI could raise questions about their professional credibility and capabilities in the workplace. This fear drives AI use further into the shadows.

Consequences of "Shadow AI"

Some AI applications appear harmless and are unlikely to lead to unintended consequences. For example, project managers often use AI tools to convert meeting transcripts into summaries, even though the organization does not formally sanction their use.

Yet, many other tools carry the risk of data leakage or non-compliance. E.g., uploading sensitive data to third-party tools for generating summaries or installing plugins to email or CRM systems. 

Even the quality of work risks being compromised. E.g., text generation tools and coding assistants often produce low-quality outputs. 

How Can Organizations Prevent the Unsanctioned Use of AI

Using AI tools without formal approvals or IT visibility can lead to unintended consequences for businesses. Some organizations have explicit policies against experimenting with unsanctioned AI tools. Still, they don't always address "shadow AI", because:

  • AI tools are typically free and highly accessible. 

  • It's nearly impossible to track, especially if organizations allow personal devices or if employees work remotely on home networks.

  • Considering the immediate efficiency gains AI tools offer, employees may be compelled to find alternatives to banned tools.

  • Even with strict policies and rules, enforcement can be an issue.

Therefore, organizations should focus on enablement. Promoting a “pilot mindset,” which emphasizes using AI purposefully with agency and confidence, can help. The following best practices are needed to prevent ‘shadow AI’:

  • Leaders need to establish clear guidelines for utilizing AI in the workplace. They need to communicate a clear strategy, formal procedures, and policies. They need to demonstrate what AI is capable of, where its limitations lie, and the risks of using unapproved tools discreetly.

  • AI tools can be made available, but access should require sharing a clear use case. Organizations can establish a dedicated group where employees gather to discuss the appropriate use of AI, including how it should be applied and what the ground rules should be. 

  • Effective governance needs to be established to prevent unsanctioned experimentation with AI at work. Failure to comply with policies should lead to consequences.

  • Ultimately, organizations must provide formal training to their employees. Hands-on learning can ensure the ethical and practical use of AI. Offering usable, approved AI tools can prevent the risk of “shadow AI”.

Predictions about unprecedented job losses due to AI have yet to materialize because humans play a central role in unlocking the real-world value of AI. However, employees may have valid concerns and anxieties, which need to be addressed through empathetic dialogue.

Conclusion

AI is experimental mainly in its current capacity and poses risks. Therefore, the general wisdom is that the integration of AI into workplace operations should be premeditated: organizations should clearly define their use case, establish ethical safeguards, and formally train employees on AI use. 

As employees subscribe to the "shadow AI" trend, organizations can prioritize enablement. Encouraging them to use AI tools purposely rather than indiscriminately is necessary. Crucially, a clear business case for its use must be established. 

Investing in robust, enterprise-grade AI tools and empowering employees to use them with agency can also prevent "shadow AI."

 


Was this resource helpful?

Leave Feedback

SHRM-CP Promo Image
Validate your HR expertise

Earning your SHRM-CP credential makes you a recognized expert and leader in the HR field.

Get Certified


Related Content

(opens in a new tab)
News
Leveraging Mobile Technologies to Engage a Distributed Workforce

Transform HR with mobile technology to streamline workflows, enhance communication, and boost employee engagement across distributed teams.

Two young colleagues working together at modern office
(opens in a new tab)
News
Performance-Based Assessments Beat Knowledge Tests in Evaluating Employee Learning

A new study found that talent development practitioners believe performance-based assessments are more effective at measuring employee learning outcomes than knowledge tests.

(opens in a new tab)
News
How AI Is Redesigning, Not Replacing, HR and Other Jobs

As AI makes deeper inroads into organizations, employee concerns about the technology continue to grow. Here's how HR leaders can address the fear of AI among their own staff, as well as in the wider organization.

HR Daily Newsletter

Stay up to date with the latest HR news, trends, and expert advice each business day.

Success title

Success caption

Manage Subscriptions
Our Brands

SHRM Executive Network Logo
SHRM Business Logo
SHRM Linkage Logo
SHRM Labs
Overview


  • About SHRM
  • SHRM India Advisory Council
  • Careers at SHRM
  • Press Room
  • Contact SHRM India
  • Book a SHRM Executive Speaker
  • Ask an Advisor
  • SHRM Newsletter
  • Post a Job
  • Find an HR Job
  • Advertise with us
  • Copyright & Permission
Contact Us


Email: shrmindia@shrm.org
Phone: (1)800.103.2198
WhatsApp: +919810503727

SHRM India Corporate Information

© 2026 SHRM. All Rights Reserved
SHRM provides content as a service to its readers and members. It does not offer legal advice, and cannot guarantee the accuracy or suitability of its content for a particular purpose. Disclaimer

Follow Us

  • LinkedIn
  • Facebook
  • Twitter
  • Instagram
  • YouTube

  1. Your Privacy Choices

  2. Terms of Use

  3. Accessibility

Join SHRM for Exclusive Access to Professional Content

SHRM Members enjoy unlimited access to articles and exclusive professional content resources.

membership icon image

Unlimited Resources:
Grow your knowledge across core and emerging topics

membership icon image

Access to Advisors:
Make informed decisions quickly with expert-backed direction

membership icon image

Industry-Trusted Research:
Use data and insights leaders actually care about

 

View Member Benefits Guide

Already a member? Login
Free Article

Login to unlock unlimited access or join SHRM today to get unlimited access to articles and member-exclusive resources.

Already a member? Login
Limit Reached

You've reached the limit of 1 free article this month. Join to access unlimited articles and member-only resources.

Already a member? Login
Free Article

Login to unlock unlimited access or join SHRM today to get unlimited access to articles and member-exclusive resources.

Already a member? Login
Exclusive Executive-Level Content

You've reached the limit of 1 free article this month. Join the Executive Network and enjoy unlimited content.

Already a member? Login
Unlock Your Career with SHRM Membership

Please enjoy this free resource! Join SHRM for unlimited access to exclusive articles and tools.

Already a member? Login
Join SHRM for Exclusive Access to Professional Premium Content

SHRM Members enjoy unlimited access to articles and exclusive member resources.

Already a member? Login
Join SHRM for Exclusive Access to Student Content

SHRM Members enjoy unlimited access to articles and exclusive member resources.

Already a member? Login
Join SHRM for Exclusive Access to Executive Network Content

SHRM member enjoys unlimited access to articles and exclusive member resources.

Already a member? Login

Your membership is almost expired! Renew today for unlimited access to member content.

Renew now

Your membership has expired. Renew today for unlimited access to member content.

Renew Now

Your Executive Network membership is nearing its expiration. Renew now to maintain access.

Renew Now

Your membership has expired. Renew your Executive Network benefits today.

Renew Now