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Shadow AI Becomes Second-Largest Shadow IT Risk at Work, New Report Finds

Leaders are urged to replace bans with structured oversight that channels employee AI use into secure, auditable systems.

Overview

  • 1Password’s 2025 survey of 5,200 knowledge workers found 27% used unapproved AI tools and 37% do not always follow company AI policies, even as 73% say their employers encourage experimentation.
  • The report ranks unauthorized AI as the No. 2 shadow IT category after email, with convenience and perceived productivity gains cited as primary reasons for bypassing approvals.
  • Employees reported using AI for tasks ranging from summarizing customer calls to analyzing company and customer data and assisting with hiring process reviews, broadening the potential exposure of sensitive information.
  • Security leaders warn that generative tools and autonomous agents heighten risks by potentially ingesting confidential data and taking actions that can lead to compliance, legal, or reputational harm.
  • Recommended responses include maintaining an inventory of AI tools, enforcing clear policies and data-access controls, adopting federated oversight with licensed agent builders, and offering enterprise deployments and internal marketplaces so agents operate under user permissions.