Netskope Highlights Rising Shadow AI Risks Amid GenAI Adoption

Netskope has released new research indicating a 50% increase in generative AI (genAI) platform usage among enterprise end-users in the three months ending May 2025, announced in a press release. Despite efforts to safely enable SaaS genAI apps and AI agents, the proliferation of shadow AI—unsanctioned AI applications used by employees—continues to pose significant security risks.

The report from Netskope Threat Labs highlights that over half of all current app adoption is estimated to be shadow AI. This trend is driven by the rapid growth of genAI platforms, which allow organizations to build custom AI apps and agents. The usage of these platforms has led to a 73% increase in network traffic, with 41% of organizations already using at least one genAI platform.

Netskope's research also notes the rise of on-premises AI innovation, with 34% of organizations using Large Language Model (LLM) interfaces. The company emphasizes the need for organizations to overhaul their AI app controls and evolve data loss prevention (DLP) policies to incorporate real-time user coaching elements to safeguard innovation.

As the adoption of genAI technologies accelerates, Netskope recommends that organizations assess the genAI landscape, bolster app controls, and implement continuous monitoring to manage the risks associated with shadow AI effectively.