Shadow AI is becoming a bigger operational risk than Shadow IT ever was, according to Microsoft solutions specialist FormusPro, as employees increasingly turn to artificial intelligence tools without formal governance or organisational oversight.
The company warns that unofficial AI use is no longer just a technology issue. As AI becomes embedded in everyday work, it’s beginning to influence business decisions, customer communications and operational processes in ways many organisations cannot currently see or govern.
Unlike Shadow IT, which primarily introduced risks around systems, infrastructure and data, Shadow AI is increasingly shaping how people analyse information, communicate with customers and make business decisions. FormusPro believes that shift fundamentally changes the nature of organisational risk.
“Shadow IT created visibility and governance problems,” said James Crossland, Head of Marketing at FormusPro. “Shadow AI has the potential to influence judgement itself. That’s a fundamentally different challenge because organisations may have no idea where AI is already shaping decisions.”
FormusPro says unofficial AI adoption is accelerating because employees are under growing pressure to work faster, not because they are deliberately trying to bypass company policies. As AI tools become easier to access and capable of completing complex tasks in seconds, their adoption is being driven by practicality rather than formal technology programmes.
“Most people aren’t trying to create risk,” Crossland continued. “They’re trying to remove friction. If AI can produce a first draft, summarise a meeting or analyse a spreadsheet in seconds, employees will naturally use it. The challenge for organisations is making sure that happens within clear guardrails, using approved tools and with appropriate oversight.”
Rather than attempting to ban AI outright, FormusPro argues organisations should focus on practical governance, approved AI platforms, employee education and clear guidance that makes safe AI adoption easier than unsafe alternatives. The company believes this approach is more likely to create visibility and accountability than restrictive policies that employees may simply work around.
As AI capabilities continue to evolve, FormusPro believes the organisations that will benefit most are those that balance innovation with governance, enabling employees to use AI confidently whilst maintaining security, transparency and trust.
