BlackFog research reveals widespread shadow AI use and a startling level of risk tolerance among senior leaders, even as employees upload proprietary data into free AI tools.

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BlackFog survey of 2,000 enterprise employees reveals 49% use unsanctioned AI tools, with senior leaders showing high risk tolerance. 58% of unauthorized users rely on free AI versions, and 33% share proprietary research data. Free tools typically train models on ingested data, creating intellectual property loss and security risks. Organizations lack visibility into shadow AI usage, with 99% having no monitoring in place. Experts recommend auditing AI usage, establishing governance policies, and educating employees on risks.

Roughly half of employees are using unsanctioned AI tools, and enterprise leaders are major culprits