Rise of ‘shadow AI’ exposes wellbeing risks as employees bypass workplace systems 

The growing use of unauthorised artificial intelligence tools by employees is creating new risks for UK businesses, with implications extending beyond cybersecurity into workplace health and wellbeing. 

New research from Studio Graphene, based on a survey of 500 senior decision-makers, found that almost half (48 per cent) of organisations know or suspect employees are using AI tools that have not been officially approved. 

The trend, often referred to as “shadow AI”, highlights a widening gap between employee behaviour and organisational strategy, with 64 per cent of business leaders concerned that unregulated AI use could lead to data security or compliance risks. 

However, the findings also point to a deeper issue around employee experience and workplace pressure. 

More than a third (34 per cent) of organisations have no formal policies governing AI usage, while 37 per cent have not communicated expectations to staff. At the same time, 61 per cent of leaders admitted that frontline employees are more comfortable using AI tools than senior leadership. 

This disconnect suggests employees are turning to external tools to manage workload, improve efficiency or reduce friction in their day-to-day roles. 

For workplace health and wellbeing, this raises important questions. The use of unsanctioned tools may be a signal of underlying pressure, where employees feel the need to work faster, smarter or more independently without sufficient support from existing systems. 

Ritam Gandhi, director and founder of Studio Graphene, said: “Shadow AI isn’t the result of malice or even carelessness. It’s often the result of a disconnect between senior leadership and their teams.” 

The research also found that 59 per cent of leaders are concerned that over-reliance on AI could lead to mistakes, reinforcing the tension between productivity gains and potential risk. 

From a wellbeing perspective, this tension can contribute to stress, uncertainty and cognitive overload, particularly where employees are navigating unclear expectations around AI use. 

The findings come at a time when organisations are under increasing pressure to balance innovation with employee support. While AI has the potential to improve productivity and reduce workload, a lack of clear strategy and communication can have the opposite effect. 

For HR and people teams, the rise of shadow AI presents a dual challenge: managing risk while also understanding why employees feel the need to seek out alternative tools. 

This points to a broader shift in the workplace, where technology adoption is increasingly driven from the bottom up, rather than dictated by leadership. 

To respond effectively, organisations may need to move beyond restrictive policies and focus on enabling safe, supported and transparent use of AI. This includes clearer guidance, better training and tools that genuinely meet employee needs. 

As AI becomes more embedded in everyday work, its impact on employee wellbeing will become more pronounced. The challenge for employers will be ensuring that technology reduces pressure, rather than adding to it, while creating environments where employees feel supported, not monitored. 

The rise of shadow AI is not just a security issue, but a signal of how work is evolving, and how organisations must adapt to protect both their data and their people.