According to a study conducted by the German Institute of Economic Research (IW), the use of unauthorized Artificial Intelligence (AI) software within German companies is common. Data gathered from the self-assessments of 5,000 employees in March and April of this year revealed that nearly one in three workers (29.1 percent) utilize what is known as “shadow AI”-AI tools that have not been officially authorized by their employers.
The IW noted that AI is advancing in the workplace faster than many businesses can organize or regulate its use. The use of unapproved programs was particularly high among employees under the age of 30 (38.4 percent) and among management (34.6 percent). Furthermore, shadow AI was utilized by a larger percentage of staff in smaller firms (33.5 percent) compared to large companies with over 250 employees (25.5 percent).
Prior surveys by the industry association Bitkom had already indicated that concerns regarding data protection often slow down the approval of new software in businesses. Bitkom also points out that legal uncertainty and worries about corporate secrets play a significant role in the implementation of new applications. However, the IW experts argue that overly strict restrictions are counterproductive. They suggest that if companies formally introduce and authorize specific programs, those tools would be used almost twice as frequently on a regular basis compared to the unauthorized shadow AI.
