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Netskope Threat Labs: Shadow AI Risks Proliferate as GenAI Platforms and AI Agents See Rapid Adoption
shadow-ai

Netskope Threat Labs: Shadow AI Risks Proliferate as GenAI Platforms and AI Agents See Rapid Adoption

Netskope research reveals a 50% surge in genAI use and growing shadow AI risks, urging enterprises to strengthen AI governance and monitoring.

August 4, 2025
5 min read
Netskope

Netskope research reveals a 50% surge in genAI use and growing shadow AI risks, urging enterprises to strengthen AI governance and monitoring.

Netskope Threat Labs: Shadow AI Risks Proliferate as GenAI Platforms and AI Agents See Rapid Adoption

Latest research indicates increased adoption of on-premises genAI and AI agents is magnifying security challenges despite enterprises safely enabling SaaS genAI apps on a broader scale. SANTA CLARA, Calif., Aug. 4, 2025 /PRNewswire/ – Netskope, a leader in modern security and networking, today released new research showing a 50% spike in genAI platform usage among enterprise end-users in the three months ended May 2025. Despite an ongoing shift toward safe enablement of SaaS genAI apps and AI agents, the growth of shadow AI—unsanctioned AI applications in use by employees—continues to compound potential security risks, with over half of all current app adoption estimated to be shadow AI. The new data was published within the company's latest Netskope Threat Labs Cloud and Threat Report. It examines the ongoing employee shift to genAI platforms, whether delivered from the cloud or on-premises, amid expansive interest to develop AI apps and autonomous agents, creating new cybersecurity challenges enterprises must address.

The Rise of GenAI Platforms

GenAI platforms, foundational infrastructure tools that enable organizations to build custom AI apps and AI agents, represent the fastest growing category of shadow AI given their simplicity and flexibility for users. In the three months ended May 2025, users of these platforms increased by 50%. GenAI platforms expedite direct connection of enterprise data stores to AI applications, creating new enterprise data security risks that heighten the importance of data loss prevention (DLP) and continuous monitoring. Network traffic tied to genAI platform usage increased 73% over the prior three months. In May, 41% of organizations were already using at least one genAI platform. Approximately 29% of organizations utilize Microsoft Azure OpenAI, followed by Amazon Bedrock (22%), and Google Vertex AI (7.2%).
"The rapid growth of shadow AI places the onus on organizations to identify who is creating new AI apps and AI agents using genAI platforms and where they are building and deploying them," said Ray Canzanese, Director of Netskope Threat Labs. "Security teams don't want to hamper employee end users' innovation aspirations, but AI usage is only going to increase. To safeguard this innovation, organizations need to overhaul their AI app controls and evolve their DLP policies to incorporate real-time user coaching elements."

The Many Facets of On-Premises AI Innovation

Organizations are innovating rapidly by deploying genAI locally through on-premises GPU sources and developing tools that interact with SaaS genAI applications or platforms. Large Language Model (LLM) interfaces are increasingly popular:
  • 34% of organizations use LLM interfaces, with Ollama leading adoption at 33%, while LM Studio (0.9%) and Ramalama (0.6%) have minimal adoption.
  • Employees actively experiment with AI tools, with 67% of organizations downloading resources from Hugging Face.
  • AI agents are gaining traction; GitHub Copilot is used in 39% of organizations, and 5.5% have users running agents generated from popular AI agent frameworks on-premises.
  • On-premises agents are accessing more SaaS data via APIs beyond browsers. Two-thirds (66%) of organizations have users making API calls to api.openai.com and 13% to api.anthropic.com.

    • The Continuation and Evolution of SaaS AI Use

    Netskope tracks over 1,550 distinct genAI SaaS applications, up from 317 in February 2025, reflecting rapid app release and adoption. Organizations use about 15 genAI apps on average, up from 13 in February. Data uploaded monthly to genAI apps increased from 7.7 GB to 8.2 GB quarter over quarter.
  • Enterprise users consolidate around purpose-built tools like Gemini and Copilot as security teams safely enable these integrated chatbots.
  • ChatGPT saw its first enterprise popularity decline since tracking began in 2023.
  • Other popular apps such as Anthropic Claude, Perplexity AI, Grammarly, and Gamma gained enterprise adoption.
  • Grok entered the top 10 most-used genAI apps for the first time; although still among the most-blocked apps, its blockage rates are declining as organizations adopt granular controls and monitoring.

    • Ensuring AI Governance and Usage Monitoring

    CISOs and security leaders should take steps to ensure safe and responsible genAI adoption:
  • Assess the genAI landscape: Identify which genAI tools are in use, who uses them, and how.
  • Bolster genAI app controls: Enforce policies allowing only approved genAI apps, implement blocking mechanisms, and deploy real-time user coaching.
  • Inventory local controls: For local genAI infrastructure, apply security frameworks like the OWASP Top 10 for Large Language Model Applications and ensure protection of data, users, and networks.
  • Continuous monitoring and awareness: Detect new shadow AI instances and stay updated on AI ethics, regulations, and adversarial threats.
  • Assess emerging agentic shadow AI risks: Identify early adopters and collaborate on actionable policies to limit shadow AI.
    • To learn more, view the Netskope Threat Labs Cloud and Threat Report: Shadow AI and Agentic AI here.

    Frequently Asked Questions (FAQ)

    GenAI Platform Adoption and Risks

    Q: What is the primary concern highlighted by the Netskope Threat Labs report regarding GenAI adoption? A: The primary concern is the proliferation of "shadow AI," where unsanctioned AI applications are used by employees, significantly increasing potential security risks. Q: What is the growth rate of GenAI platform usage among enterprise end-users? A: The report indicates a 50% spike in GenAI platform usage among enterprise end-users in the three months ending May 2025. Q: Why are GenAI platforms considered a growing category of shadow AI? A: GenAI platforms are simple and flexible for users, allowing for quick connections to enterprise data stores, which creates new enterprise data security risks. Q: What percentage of current app adoption is estimated to be shadow AI? A: Over half of all current app adoption is estimated to be shadow AI. Q: What are some of the leading GenAI platforms being used by organizations? A: Microsoft Azure OpenAI is used by approximately 29% of organizations, followed by Amazon Bedrock (22%), and Google Vertex AI (7.2%). Q: What is the impact of on-premises GenAI adoption on security challenges? A: The adoption of on-premises GenAI and AI agents is magnifying security challenges for enterprises.

    On-Premises AI Innovation

    Q: Which LLM interface has the highest adoption rate among organizations? A: Ollama leads LLM interface adoption at 33%. Q: What percentage of organizations have users downloading resources from Hugging Face? A: 67% of organizations have employees actively experimenting with AI tools by downloading resources from Hugging Face. Q: Which AI agent is most commonly used in organizations? A: GitHub Copilot is used in 39% of organizations. Q: How are on-premises agents accessing SaaS data? A: On-premises agents are accessing SaaS data via APIs, beyond just browser interfaces.

    SaaS AI Usage Trends

    Q: How many distinct GenAI SaaS applications does Netskope track? A: Netskope tracks over 1,550 distinct GenAI SaaS applications. Q: How has the average number of GenAI apps used by organizations changed? A: Organizations are using about 15 GenAI apps on average, an increase from 13 in February 2025. Q: What has been the trend for ChatGPT's enterprise popularity? A: ChatGPT saw its first enterprise popularity decline since tracking began in 2023. Q: Which popular GenAI apps have seen increased enterprise adoption? A: Anthropic Claude, Perplexity AI, Grammarly, and Gamma have gained enterprise adoption. Q: Which new app entered the top 10 most-used GenAI apps for the first time? A: Grok entered the top 10 most-used GenAI apps for the first time.

    AI Governance and Security Recommendations

    Q: What is a key recommendation for security teams regarding AI usage? A: Security teams should overhaul their AI app controls and evolve DLP policies to incorporate real-time user coaching. Q: What security frameworks should be applied to local GenAI infrastructure? A: Organizations should apply security frameworks like the OWASP Top 10 for Large Language Model Applications. Q: What are the crucial steps CISOs and security leaders should take for safe GenAI adoption? A: Key steps include assessing the GenAI landscape, bolstering app controls, inventorying local controls, continuous monitoring and awareness, and assessing emerging agentic shadow AI risks.

    Crypto Market AI's Take

    The rapid rise of both SaaS and on-premises GenAI platforms, as highlighted by Netskope's research, underscores a significant shift in how businesses operate and the potential security implications. This mirrors the broader trend of AI integration across various sectors, including finance and cryptocurrency. At Crypto Market AI, we are at the forefront of leveraging AI to navigate this evolving landscape, offering insights into market trends and the tools needed for secure and intelligent digital asset management. Our platform utilizes advanced AI for real-time market analysis and risk assessment, crucial for understanding the security challenges presented by widespread AI adoption. We believe that by embracing AI responsibly, businesses can unlock new opportunities while mitigating the risks associated with "shadow AI" and ensuring robust cybersecurity. Learn more about how AI is transforming the financial landscape and enhancing security measures in our comprehensive guides on AI-powered trading strategies and cryptocurrency security best practices.

    More to Read:

  • AI Agents: Capabilities, Risks, and Growing Role
  • AI-Driven Crypto Scams Surge 456%: Experts Warn No One is Safe
  • Netskope Finds Shadow AI Risks Proliferate as GenAI Platforms and AI Agents See Rapid Adoption
Source: Originally published by Netskope on PR Newswire on August 4, 2025.