Microsoft Warns of Growing ‘Shadow AI’ Use as Security Risks Across UK Workplaces

Microsoft’s new research warns about the growing use of Shadow AI across UK workplaces. Per the research, around 71% of employees admit to using unapproved AI tools, with over half doing so weekly.

The company says this trend risks serious data privacy and cybersecurity threats for businesses. According to Microsoft’s UK report, many workers use public AI chatbots and text generators for daily tasks. Nearly 49% rely on them to draft emails, 40% for reports or presentations, and 22% for finance-related work.

That said, only one-third worry about exposing company or customer data to such tools. Even fewer, about 29%, are concerned about their organisation’s system security.

Speaking about the AI usage in the country, Darren Hardman, CEO of Microsoft UK and Ireland, says, “UK workers are embracing AI like never before, unlocking new levels of creativity.”He further added, “But enthusiasm alone isn’t enough. Businesses must ensure workplace AI tools are secure and reliable.”

Microsoft warns that Shadow AI leaves organizations open to data leaks, regulatory issues, and cyberattacks. Most public AI assistants lack enterprise-level protection, increasing the risk of misuse.

While Shadow AI tools pose a risk, the productivity boost reported in the research is quite remarkable. Employees report saving up to 7.75 hours a week using AI tools. That equals 12.1 billion hours annually, valued at around £208 billion in time.

With optimism growing, 57% of UK workers feel confident or excited about AI’s potential. Moreover, Microsoft urges companies to balance productivity with protection by adopting secure, enterprise-approved AI systems.