Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      The next person to shop your store may not be a person at all

      AI shopping agents are rewriting the rules of online retail across North America

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Cohere's Aidan Gomez bets the house on 'sovereign AI' with Aleph Alpha merger valuing the group at $20bn

      Cohere CEO Aidan Gomez on stage discussing the Toronto AI lab's strategy

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      Moonvalley's Naeem Talukdar is selling Hollywood the one thing rival AI video tools cannot: legal cover

      Moonvalley's Marey AI video model produces Hollywood-grade footage trained on licensed data

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Thursday 11 June 2026 8:00 am  |  Updated:  Thursday 11 June 2026 11:05 am

Controlling the sprawl of shadow AI

By: Heather Smith

Add as a preferred source on Google
UK initiative to manage AI expansion, showcasing technology control measures in urban settings

There’s a gap widening across UK organisations that nobody is properly discussing. It’s not between technology and security. It’s between what leaders think is happening with AI tools and what the workforce is actually doing.

According to Okta’s AI Agents at Work 2026 study, 96 per cent of UK executives believe they have visibility into AI tool usage. Yet, 55 per cent of UK knowledge workers use unapproved “shadow AI” tools.

James Simcox, Chief Product Officer at Equals, sees this as a leadership challenge, “It has to be that even your executive teams feel like they own security,” he says. “For forward thinking organisations, shadow AI isn’t a problem to be locked down, it’s a signal that governance frameworks need to evolve.”

That’s the core tension. This isn’t a result of bad people. It’s the outcome of good people solving problems with the tools at hand.

How shadow AI spreads in practice

Imagine that someone on your team finds a tool that solves a problem in five minutes instead of thirty. They mention it to a colleague. Two more of their colleagues tried it. A week later it’s normalised. They’re just being practical, not reckless.

The numbers tell you why this pattern keeps repeating. Globally, 80 per cent of workers reach for unapproved tools because they’re faster and easier. 78 per cent do it because their team already uses it and it’s considered normal. When 57 per cent say the approval process is too slow or difficult, and 49 per cent say approved tools don’t meet their needs, you’re looking at a system that doesn’t fit how work actually happens. So, people work around it.

“I love my teams using AI, but these tools are sometimes designed to make you want to overshare,” notes Simcox.

The key is having visibility and the right governance framework so we can innovate confidently.

When visibility becomes a false comfort

Globally, 58 per cent of executives reported their organisation experienced an AI-related security incident or close call in the past year. When employees routinely share confidential company documents (29 per cent), HR related information (36 per cent) and login credentials and passwords (16 per cent), the risk is tangible.

Read more

Why identity security is now a board-level imperative

Corporate executives strategizing on managing shadow AI in business environments

But the gap goes deeper than data sharing. Okta’s research shows a 22-point chasm between executive and worker perceptions of policy clarity. 65 per cent of executives globally believe their AI usage policies are “very clear,” but only 43 per cent of knowledge workers agree. When the blueprint and the reality don’t align, governance breaks down.

Why shadow AI isn’t just shadow IT 2.0

But shadow AI is just the newest version of shadow IT, right? Well, not entirely. With shadow IT, someone may download some new software that contains malware, but the risk is contained. On the other hand, an AI agent with integrations across your systems carries exponentially more risk. “If you accidentally bring in an AI agent type system that’s hooked up to a bunch of services and no one notices, that’s a real problem” says James Simcox.

A malicious shadow AI agent can access databases, connect to APIs, execute workflows across multiple platforms – all without your knowledge. Without visibility into what agents are active, what they’re connected to and what permissions they hold, you can lose control very quickly.

Why this is happening

Employees aren’t reaching for unapproved tools out of rebellion. They’re reaching for them because those tools help them do their jobs better.

When an unapproved tool gets the job done faster than your approved alternative, workers face a dilemma. Do they follow governance or hit targets? You can communicate your expectations clearly and train people on policies, but if the unapproved path is faster, governance will lose. The gap exists because your governance framework doesn’t reflect the realities of what is going on in the workforce.

Closing the blindspot

Start with discovery. Assume shadow AI exists and use tools to gain visibility into what’s running.

Make the approved path competitive. If your official tools are slower than what employees find themselves using, you’re asking people to choose between performance and compliance. Make your approved ecosystem faster and more integrated.

Govern the full lifecycle. Don’t just control tool selection – govern access, permissions and identity throughout. Get visibility into what’s actually happening. “Great security actually speeds things up, not slows us down,” says Simcox. “With Okta’s tools like ISPM integrated across our ecosystem, we’ve got the guardrails to enable innovation while protecting our customers.”

This isn’t about enforcement versus control. It’s about alignment. When your workforce uses unapproved tools, that’s feedback – your system telling you exactly where it needs to evolve. Tighter restrictions won’t fix this. Better governance will. Governance that’s faster, more accessible and actually works with how people operate, not against it.

Read more

Industry Execs Think Digital Transformation Is Working – but Staff Still Rely on Shadow IT to Get the Job Done

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Partner Content

Categories

  • Partner
  • Tech

People & Organisations

  • Equals Money
  • Heather Smith
  • James Simcox
  • okta

Trending Articles

  • KPMG’s Summer Friday half-day rollback signals deeper woes for Big Four giants

  • Inflation expectations at record high in interest rates signal

  • London Tech Week sums up everything wrong with UK tech

  • KPMG report on AI found riddled with AI hallucinations

  • UK economy falters as deeper damage to growth to come

More from CityAM

  • Why identity security is now a board-level imperative

    Partner
    Corporate executives strategizing on managing shadow AI in business environments
  • Industry Execs Think Digital Transformation Is Working – but Staff Still Rely on Shadow IT to Get the Job Done

    Business Wire
  • Gambit Cyber Launches Vizier AI – An Autonomous Security Intelligence Workspace for Continuous Exposure Management

    Business Wire
  • The invisible workforce – why AI agents need new identity rules

    Partner
    IT professional managing server room equipment with focus on advanced technology and network infrastructure
  • ZayZoon, the Calgary fintech born on a fishing boat, posts 1,487% growth as earned wage access goes mainstream

    ZayZoon co-founder Tate Hackert built the Calgary fintech around earned wage access
  • Botpress raises $25m as Quebec's Sylvain Perron pitches his startup as the 'infrastructure layer' for AI agents

    Botpress product UI: the Quebec startup pitches itself as the infrastructure layer for enterprise AI agents
  • Tanium’s Converge World Tour Returns to London to Explore the Future of Autonomous IT

    Business Wire
  • FluidAI wins US FDA clearance for its surgical monitor as Waterloo's Youssef Helwa targets 100,000 operations

    FluidAI's Origin surgical monitor wins FDA clearance for use in US hospitals
  • Terms & Conditions
  • Privacy Policy
  • Cookie Policy
  • News
  • Markets & Economics
  • Politics
  • Opinion
  • Life&Style
  • Personal Finance

Follow us for breaking news and latest updates

  • Facebook
  • X
  • Instagram
  • LinkedIn
Copyright 2026 CityAM Limited