Microsoft Targets ’Shadow AI’ as Unauthorized Workplace Tools Pose Risks
Microsoft (MSFT) is sounding the alarm on "Shadow AI"—unauthorized artificial intelligence tools proliferating in workplaces. A UK-focused report reveals 71% of employers encounter unapproved AI usage weekly, with half leveraging these tools for internal communications and 40% for reports. Finance departments aren't immune, with 22% adopting AI for sensitive tasks.
While AI delivers global productivity gains—estimated at 12 billion hours saved annually—the unchecked adoption raises red flags. Microsoft's warning comes as enterprises balance efficiency gains against data security and compliance risks. The tech giant's stock edged upward despite the cautionary messaging, suggesting investors view AI governance as a growth catalyst rather than a constraint.
