UpGuard Report Finds 68% of Security Leaders Use Unauthorized AI Tools

UpGuard announced in a press release the findings of its new "State of Shadow AI" report, showing that 68% of security leaders, including CISOs, use unauthorized AI tools in their daily work. The report also found that 8 in 10 employees worldwide use unapproved generative AI systems, indicating widespread noncompliance with corporate governance policies.

The study highlights a paradox: employees who have received AI safety training are more likely to use unapproved AI tools. UpGuard’s data suggests that traditional awareness programs may not reduce shadow AI usage, as trained employees often become more confident in experimenting with such tools.

Senior leadership appears to be leading this trend. The report states that 90% of security leaders admit to using unapproved AI, and 23% of CISOs are aware of credentials being shared with AI platforms. Additionally, 27% of workers trust AI more than their managers for reliable information, underscoring a growing divide between employees and corporate oversight.

UpGuard’s findings indicate that blocking access to AI tools is ineffective, as 41% of employees find ways to bypass restrictions. The company recommends a governance approach focused on visibility, intelligent guardrails, and providing secure, approved AI options to reduce risk and improve compliance.