New research from Microsoft suggests that the use of unapproved AI tools in the workplace is widespread across the UK, with potentially serious security implications.

The study, conducted by Censuswide in October 2025 and based on a survey of 2,003 UK employees, found that 71% have used consumer AI tools at work, and more than half (51%) continue to do so every week.

According to Microsoft, the growing use of shadow AI – generative AI tools and chatbots that are not sanctioned by employers – presents a significant privacy and cybersecurity risk for UK organisations.

While generative AI tools have become a fixture in day-to-day work, with employees saving an estimated 12 billion hours a year – worth around £207 billion in productivity, according to the research – Microsoft cautions that enthusiasm for AI is outpacing awareness of its risks.

According to the research, employees are turning to consumer AI assistants for a range of tasks, including drafting and responding to workplace communications (49%), creating reports and presentations (40%), and even handling finance-related activities (22%).

However, awareness of the potential dangers remains low. Only a third (32%) of respondents said they were concerned about the privacy of company or customer data entered into consumer AI tools, while just 29% expressed concern about their organisation’s IT security.

For many workers, convenience is driving adoption. Four in ten (41%) said they use consumer AI tools because they are familiar with them from personal use, while 28% said their company does not provide a work-approved alternative.

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“UK workers are embracing AI like never before, unlocking new levels of productivity and creativity. But enthusiasm alone isn’t enough,” said Darren Hardman, CEO of Microsoft UK & Ireland.

“Businesses must ensure the AI tools in use are built for the workplace, not just the living room. The message is clear: only enterprise-grade AI delivers the functionality that employees want, wrapped in the privacy and security every organisation demands.”

The report warns that the use of Shadow AI could lead to serious consequences, including data leaks, regulatory breaches, and increased exposure to cyber-attacks – particularly where sensitive company or customer information is involved.