“Biggest AI threat resides in the Boardroom” reveals TrustedTech research

The extensive survey of circa 2,000 employees across the UK and the US shows that 62% of senior leaders in the UK use ‘Shadow AI’ (unapproved AI tools that may process or store organisational data outside approved systems) compared to 31% of employees who are below decision-maker level.

Despite this, 51% of senior leaders voice the view that they’re concerned about employees using Shadow AI, highlighting a clear ‘disconnect’ between governance expectations and actual behaviour at the top of organisations.

Given their elevated access to sensitive systems, data and administrative privileges, poor AI governance at senior level can represent a disproportionately higher risk than at other levels of an organisation. What’s more, when leaders fail to model responsible AI use, they normalise the very behaviour they’re attempting to control, thereby increasing exposure to data security breaches, regulatory non-compliance and data leakage.

Crucially, the research findings suggest this isn’t simply accidental. While the frequency of shadow AI use may differ between senior leaders and junior colleagues, this survey finds conscious rule-breaking across the board.

22% of UK employees say they would continue using AI tools even if their organisation banned them and disciplinary action was possible, rising to 28% among senior decision-makers. The findings indicate that many employees, particularly so those in leadership roles, are willing to put their careers on the line for the sake of using unapproved AI.

Turning to Shadow AI

Why, then, are employees – and particularly senior leaders – turning to Shadow AI at pace? The research points to a combination of productivity pressure, access limitations and concerns over trust and monitoring.

Among those using unapproved AI tools, 24% cite limited access to employer-approved AI tools, 21% say unapproved tools are more efficient, 21% don’t  want their data stored or accessed by their employer, 20% are concerned that AI usage could negatively impact career progression and 19% worry that it could raise doubts about their performance or capability.

The research findings also highlight an alarming growing culture of caution and self-censorship around AI use in the workplace. 21% of UK employees say they judge colleagues negatively if they use AI extensively to support their workload, while 23% reduce their own use of AI due to concerns about how they may be perceived by colleagues or management.

In addition, 28% of employees say they are concerned that their employer monitors AI tool usage, further reinforcing hesitancy and distrust.

This combination of convenience, pressure and surveillance concerns is driving widespread adoption of unapproved tools, even as awareness of the risks remains high. 76% of UK employees acknowledge that using unapproved AI tools poses security or data privacy risks, yet nearly half (ie 47%) continue to use them in the workplace.

Driven from the top 

Julian Hamood, founder and chief visionary officer of TrustedTech, said: “Businesses often assume that Shadow AI is a bottom-up problem, but our research shows it’s being driven from the top down.”

Hamood continued: “Senior leaders are not only the biggest users of unapproved AI tools. They are also knowingly bypassing safeguards because the perceived benefits outweigh the risks. When that behaviour is modelled at the top of an organisation, it becomes significantly harder to enforce governance elsewhere in the business.”

In conclusion, Hamood noted: “The findings highlight an urgent need for organisations to rethink how they approach AI governance, with a focus on leadership accountability, clearer usage policies and improved education around secure and responsible AI adoption.” 

*Copies of the White Paper entitled ‘Shadow AI in the Workplace’ are available to download from the TrustedTech website at https://www.trustedtechteam.com/pages/shadow-ai-whitepaper-download