The Rise of the “Shadow AI Economy”: Employees Outpace Companies in AI Adoption

 

Artificial intelligence has become one of the most talked-about technologies in recent years, with billions of dollars poured into projects aimed at transforming workplaces. Yet, a new study by MIT suggests that while official AI programs inside companies are struggling, employees are quietly driving a separate wave of adoption on their own. Researchers are calling this the rise of the “shadow AI economy.”

The report, titled State of AI in Business 2025 and conducted by MIT’s Project NANDA, examined more than 300 public AI initiatives, interviewed leaders from 52 organizations, and surveyed 153 senior executives. Its findings reveal a clear divide. Only 40% of companies have official subscriptions to large language model (LLM) tools such as ChatGPT or Copilot, but employees in more than 90% of companies are using personal accounts to complete their daily work.

This hidden usage is not minor. Many workers reported turning to AI multiple times a day for tasks like drafting emails, summarizing information, or basic data analysis. These personal tools are often faster, easier to use, and more adaptable than the expensive systems companies are trying to build in-house.

MIT researchers describe this contrast as the “GenAI divide.” Despite $30–40 billion in global investments, only 5% of businesses have seen real financial impact from their official AI projects. In most cases, these tools remain stuck in test phases, weighed down by technical issues, integration challenges, or limited flexibility. Employees, however, are already benefiting from consum

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