Howdy HR friends!👋

Hope you’re all having a great start to the week!

Today we’re pondering shadow AI in the workplace. Because what makes something truly irresistible? Outlawing it of course!

So let’s step out of the shadows and into the light so we can all continue to use this super helpful new tool (whilst also playing by the company rules)…

🚦Coming up

In today’s edition

🤖 Shadow AI: The Unauthorized Productivity Revolution HR Needs to Address

🗳️ The Break Room: How is your organization handling shadow AI usage?

📚 Human Readsources: HR business acumen essentials, Wells Fargo's DEI rebranding, and the latest AI hiring trends.

💭Opening thoughts

Another AI HR headache: just what we needed?!

Whilst many organizations are still drafting their AI usage policies, 78% of employees are already uploading company data to ChatGPT!

Unlike traditional shadow IT, unauthorized AI usage affects every department. It creates unprecedented data security risks while simultaneously driving productivity gains that companies can't afford to ignore.

One for IT surely? Well, unfortunately not.

HR leaders need practical approaches to transform shadow AI from a workplace threat into a competitive advantage.

Easier said than done, right? By the end of today’s edition we hope you’ll have a few ideas to a) identify it and b)tackle it constructively.

For easy reading

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🧠Let’s unpick

🤖 The Unauthorized Productivity Revolution

Unauthorized AI tools employees use without company approval is exploding in workplaces everywhere.

And right under our noses by the sounds of it?!

With a staggering 485% year-over-year increase in AI usage, this isn't a fringe issue and it’s only going to accelerate over the next 12 months.

Most employees aren't being malicious; they're just trying to work smarter, faster, and more efficiently when official tools, software (and even colleagues) don't meet their needs.

The risks are very real though.

Sensitive data uploaded to third-party platforms, compliance violations with GDPR or HIPAA, and potential security breaches.

According to SHRM, "employees are using personal devices to access AI tools, circumventing company restrictions and potentially exposing sensitive information to third parties".

Instead of fighting the inevitable, HR should lead with balanced governance.

Create clear acceptable use policies with employee input, provide secure alternatives that actually meet people's needs, and implement education programs that explain the "why" behind restrictions.

The most successful approaches treat shadow AI as a signal of unmet employee needs rather than just a security threat.

Remember: your people aren't trying to break rules: they're trying to excel at their jobs!

You can read more at...

🔗 Managing Shadow AI: Balancing Security and Innovation (Wiz Academy) 

🔗Balancing Innovation Risks in the Workplace (SHRM)

🔗 Your Innovative Employees' Risky Security Backdoor (Workvivo)

👀Too long didn’t read

TLDR

Shadow AI is booming because your employees want to work smarter, not harder and fighting it only drives it underground.

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🎬Lights, camera, action!

Takeaway and try

🔍 Run an anonymous "AI Tool Census" asking what unauthorized tools people are using and why they find them valuable. This reveals productivity gaps without creating fear.

🛡️ Draft a balanced acceptable use policy with employee input rather than imposing top-down restrictions. Because when people help create the rules, they're more likely to follow them.

🔄 Replace prohibition with better alternatives by investing in enterprise-grade AI tools that match the functionality employees seek from shadow solutions. More expensive? Sure. But what’s the cost of company data getting into the wrong hands? Much more right?

📊 Treat shadow AI usage metrics as innovation indicators, not compliance violations. High usage signals unmet needs that your tech stack should address. Time to knock on IT's door and get creative!

☕The break room

What’s your take?

📚Additional reading

Human Readsources

💼 Business Acumen Tops HR Leaders' 2025 Priority List (HR Grapevine) - Business acumen tops HR leaders' priorities amid AI transformation.

🔄 Wells Fargo Quietly Scraps DEI Language From Website (HR Brew) - Wells Fargo quietly rebrands DEI as ""inclusion and accessibility"" program.

🤖 AI Hiring Surge Raises Concerns for Workers (The HR Digest) - Companies rapidly adopting AI in hiring despite concerns about bias.

That’s it for today.

Thanks for reading to the end and we hope today’s edition sparked some new ideas for your workplace! 🧠

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