August 28, 2025
Shadow AI is Everywhere: Are Your Employees Flying Blind?
As many as 78% of employees are using AI tools not provided by their employer, according to WalkMe’s second annual AI in the Workplace Survey. More than half (51%) report receiving conflicting guidance on when or how to use AI, creating unmanaged “shadow AI” across organisations. While these tools are proliferating, the lack of oversight introduces serious compliance and security risks.
Despite these challenges, employees are optimistic: 80% believe AI boosts productivity. Yet nearly 60% admit that figuring out how to use AI often takes longer than completing tasks manually. Without proper guidance and training, AI’s potential is stalling, which can translate into thousands of lost hours and millions of dollars in wasted investment when scaled across an organisation.
“Beyond the productivity paradox, we’re facing a full-blown governance crisis,” said Dan Adika, CEO and Co-founder, WalkMe. “When nearly 80% of employees are using shadow AI tools, organisations are not just losing money, they’re losing control. Businesses are missing a massive opportunity to empower their people strategically and realise the full potential of AI.”
Cultural Confusion
Almost half of employees (45%) have pretended to know how to use AI during meetings to avoid scrutiny, while 49% have hidden their AI use to escape judgment. Among Gen Z, the trend is even stronger, as 55.5% say they’ve faked understanding AI tools, and 62% have concealed their usage entirely. This stigma highlights the need for clear communication and support.
Training gaps further block potential returns. While daily AI usage has increased by 16 percentage points since last year, only 7.5% of employees report receiving extensive AI training, and 23% have received no training at all. WalkMe’s 2025 State of Digital Adoption Report estimates that underused tools and poor roll-outs cost companies an average of $104 million in 2024 alone. Without structured enablement, organisations risk not only financial loss but missed opportunities to strategically empower employees.
