Shadow AI: What Mid-Sized Enterprises Are Facing in 2025
- Nethopper
- Jul 16
- 3 min read
Updated: Jul 28
The Rise of Shadow AI: Employees Using AI Tools Independently, Often Before IT or Leadership Is Aware
Shadow AI is growing fast in mid-sized companies.
Sensitive data shared with these tools almost tripled, from about 11% to 27%. Even security teams are using AI on their own, with 87% reporting daily use, often through personal accounts or browser extensions.
Most companies can’t see which AI tools are being used or what data is shared. For mid-sized firms with small IT teams, this blind spot is even bigger.
Employees turn to shadow AI because it is quick and convenient. They use it to solve problems, automate tasks, or try new ideas without waiting for IT approval.
Shadow AI also shows where official tools fall short. When approved systems are slow or limited, people look elsewhere.
The biggest risks are data leaks and breaking privacy rules.
Many companies worry about sensitive information leaving the business or not following compliance laws.
Often, no one is clearly responsible for managing these AI tools. This makes it hard to spot problems early or respond quickly.
Some mid-sized companies are starting to use tools that find and monitor unauthorized AI use. But adoption is slow, especially where IT resources are limited. There is a growing effort to set clear policies, classify data, and decide which AI tools are safe.
The Bottom Line
Shadow AI is now part of daily operations for many mid-sized enterprises. The risks - especially around data leaks and compliance - are real and growing. But shadow AI also shows where organizations can move faster or innovate. For companies with limited IT, the challenge is finding practical ways to see what’s happening and respond, without slowing down the business.
Our Enterprise AI-Powered Search & Insights Platform
As we Many companies are turning to shadow AI because it helps employees work faster, find information quickly, and spark new ideas, even when IT resources are stretched. But this often comes with worries about security and control.
Nethopper offers a safe, secure way for enterprises to get these same business benefits. With Nethopper’s unified generative AI search platform, employees can instantly find what they need (across emails, chats, files, and business apps), using a personal AI chat, all within your company’s own secure environment. This means:
Save time and boost productivity:
Teams reclaim hours lost searching for information, leading to real cost savings and more focus on important work.
Get tailored insights:
Each department gets answers and recommendations based on your company’s own data, so everyone works smarter.
Keep data private and compliant:
All AI operations happen inside your infrastructure, not in the public cloud, so your data stays protected and you stay in control.
Flexible for your needs:
Nethopper works on private cloud, on-premises, or hybrid setups, making it easy to fit your business and compliance needs.
Depending on your use case, we can help you move forward on your AI journey by giving you the speed and innovation of shadow AI - but with the safety and control your business needs.
With that in mind, I'd like to invite you to join our no-cost pilot! We’re a few companies this quarter to see how Nethopper can reduce search time by up to 90% and boost productivity.
Interested? Contact our team to learn more: Steve Libbey, Matt Wilson, Patrick Lexa, Dan Donahue, or Chris Munford.
You can also schedule a free consultation or a demo.
