Business AI

Enterprises Struggle with AI ROI as "Shadow AI" Creates Security Risks

A study found 95% of corporate generative AI projects fail to show returns, pushing employees to use unauthorized public tools.

Olivia Sharp 2 min read 467 views
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With 95% of enterprise generative AI projects failing to deliver returns, employees are turning to unauthorized "Shadow AI" tools, creating significant security risks that companies are now racing to address.

Despite massive corporate spending on artificial intelligence, the vast majority of enterprise generative AI projects are failing to deliver measurable results. This implementation gap, detailed in reports on Aug. 25, 2025, is driving employees to use unauthorized public AI tools, a practice known as "Shadow AI" that introduces significant security risks.

Widespread Project Failure

A 2025 study from the Massachusetts Institute of Technology, cited on Aug. 25, found that 95% of enterprise-level generative AI initiatives failed to produce any measurable return on investment (ROI). The report identified several causes for this high failure rate, including: - Strategic misalignment, where …

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