AI tools are becoming part of everyday working life. They help people write emails, summarise documents, analyse information and get through tasks more quickly. But in many organisations, employees are starting to use AI tools that haven’t been approved by the business. This quiet adoption, often referred to as shadow AI, is becoming increasingly common and it brings risks that business owners and decision makers need to be aware of.
Why People ‘Smuggle’ AI Into Work
Most employees aren’t trying to break the rules. In many cases, they’re responding to gaps in how technology is provided at work.
Common reasons include:
-
A lack of approved tools
If AI isn’t available through official channels, people will often turn to tools they already use outside of work. -
Pressure to be more productive
AI can feel like a shortcut. It helps people keep up with workloads, reduce admin, and respond faster, especially when time is tight. -
Unclear guidance
Where there’s no clear policy on AI usage, employees are left to make their own judgement calls. -
Fear of pushback
Some staff worry that asking about AI will lead to a flat no, or that it will create more friction than quietly using a tool on the side.
In many ways, shadow AI is a sign of good intent. People are trying to work better and faster. The problem is that they’re doing it without visibility or safeguards.
The Risks of Unapproved AI
While using public AI tools may seem harmless, it can expose organisations to serious risks.
Data security and confidentiality
Public AI tools may store or reuse the information entered into them. That means sensitive client details, internal documents, or commercial information could leave your control.
Compliance concerns
If regulated or personal data is shared with unapproved AI tools, this can quickly become a GDPR or compliance issue, particularly for professional services and care providers.
Loss of oversight
When AI usage happens outside approved systems, IT teams have no visibility into how tools are being used or what data is being processed.
Inconsistent or unreliable outputs
Different AI tools produce different results. Without governance, this can lead to inaccurate information being shared or poor decisions being made based on flawed outputs.
These risks often go unnoticed until something goes wrong, at which point the damage can be difficult to undo.

Why Clear AI Guidelines Matter
Ignoring shadow AI doesn’t stop it. In fact, the absence of guidance often encourages it.
Clear AI usage guidelines help organisations:
- Protect sensitive data
- Maintain compliance with industry regulations
- Set expectations for responsible use
- Reduce reliance on risky workarounds
- Create consistency in how AI supports the business
The goal isn’t to ban AI. It’s to give employees a safe, approved way to use it, backed by clear boundaries and understanding.
Using AI Safely with Microsoft 365 Copilot
For organisations already using Microsoft 365, Copilot offers a more secure and controlled way to introduce AI into day-to-day work.
Copilot works directly within familiar tools like Outlook, Word, Excel and Teams. Instead of pulling information from the open internet or external systems, it operates inside your Microsoft environment.
At a high level, that means:
- Copilot only works with the data you already have access to
- It respects existing permissions, so people can only see what they’re allowed to see
- Your data stays within your Microsoft 365 environment and isn’t shared elsewhere
- It follows the same security rules you already have in place
This allows businesses to benefit from AI-driven productivity without introducing the same risks that come with unapproved or consumer-grade tools.
Leading AI Adoption, Not Fighting It
AI is already part of the workplace. Whether it’s visible or not, employees are finding ways to use it. The real question for business leaders is whether that use is managed or unmanaged.
By setting clear guidelines and providing approved tools like Microsoft 365 Copilot, organisations can reduce risk, protect data, and give employees the confidence to use AI responsibly.
AI works best when it’s brought in through the front door, not quietly through the back.
