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 consumer AI products that require no approvals or training to start using.
The study highlights several reasons behind this divide:
1. Accessibility: Consumer tools are easy to set up, requiring little technical knowledge.
2. Flexibility: Workers can adapt them to their own workflows without waiting for management decisions.
3. Immediate value: Users see results instantly, unlike with many corporate systems that fail to show clear benefits.
Because of this, employees are increasingly choosing AI for routine tasks. The survey found that around 70% prefer AI for simple work like drafting emails, while 65% use it for basic analysis. At the same time, most still believe humans should handle sensitive or mission-critical responsibilities.
The findings also challenge some popular myths about AI. According to MIT, widespread fears of job losses have not materialized, and generative AI has yet to revolutionize business operations in the way many predicted. Instead, the problem lies in rigid tools that fail to learn, adapt, or integrate smoothly into existing systems. Internal projects built by companies themselves also tend to fail at twice the rate of externally sourced solutions.
For now, the “shadow AI economy” shows that the real adoption of AI is happening at the individual level, not through large-scale corporate programs. The report concludes that companies that recognize and build on this grassroots use of AI may be better placed to succeed in the future.
Tata Technologies, a multinational engineering firm and subsidiary of Tata Motors, recently experienced a ransomware attack that led to the temporary suspension of certain IT services. The company promptly launched an investigation into the incident and assured stakeholders that its operations remained unaffected. In a statement to Recorded Future News, Tata Technologies confirmed the cyberattack but refrained from sharing specifics, including the identity of the ransomware gang responsible, the divisions impacted, or whether any sensitive data was compromised.
On Friday, Tata Technologies filed an official report with the National Stock Exchange of India (NSE), confirming that only a few IT assets were affected. The company stated that it had taken precautionary measures by temporarily suspending some IT services, which have since been restored. Despite the attack, Tata Technologies emphasized that its client delivery services continued without interruption. As of now, no ransomware group has publicly claimed responsibility for the attack.
Ransomware attacks often involve data exfiltration, raising concerns about the potential exposure of sensitive corporate or customer information. Cybercriminal gangs typically take credit for breaches to pressure organizations into paying ransoms, but in this case, there has been no such acknowledgment. Tata Technologies specializes in providing engineering services to industries such as automotive, aerospace, and industrial manufacturing. Operating in 27 countries, the company plays a critical role in supporting the global automotive sector with advanced digital solutions.
In its latest financial report, Tata Technologies reported a revenue of $156.6 million in the last quarter, underscoring its significant market presence. This incident is not the first time a Tata Group company has faced cybersecurity challenges. In 2022, Tata Power, a major energy subsidiary, reported a cyberattack that affected parts of its IT infrastructure. That breach raised concerns about the cybersecurity preparedness of Tata Group companies, given their extensive global operations and reliance on digital technologies.
The attack on Tata Technologies highlights the increasing cybersecurity risks faced by multinational corporations. Ransomware groups continue to target high-value organizations, exploiting vulnerabilities in IT systems to disrupt operations and steal sensitive data. While Tata Technologies has managed to maintain business continuity, the incident serves as a reminder of the importance of robust cybersecurity measures.
Organizations facing ransomware threats typically invest in enhanced security protocols, such as:
Additionally, cybersecurity experts recommend that companies establish comprehensive incident response plans to mitigate the impact of potential cyberattacks. These plans should include steps for identifying, containing, and recovering from breaches, as well as communication strategies to keep stakeholders informed.
The ransomware attack on Tata Technologies underscores the growing threat of cyberattacks targeting multinational corporations. While the company has managed to restore its IT services and maintain business continuity, the incident highlights the need for proactive cybersecurity measures. As Tata Technologies continues its investigation, further details may emerge regarding the extent of the attack and any measures being taken to prevent future incidents. In an era of escalating cyber threats, organizations must remain vigilant and invest in robust security frameworks to protect their operations and sensitive data.
The shift to remote work has been transformative for enterprises, bringing newfound flexibility but also a myriad of security challenges. Among the rising concerns, a prominent fear looms large - the potential for end-users to inadvertently become the cause of the next major breach.
As businesses embrace the cloud, software-as-a-service (SaaS), and remote work, a million-dollar question arises: How will these roles evolve? The answer seems as complex as the myriad factors influencing it – company size, industry, culture, existing organizational charts, and future digital transformation plans, to name a few. Some advocate maintaining the status quo, while others propose a more specialized split between a business-oriented executive focused on risk management and compliance, and a technical executive honing in on threat prevention and response.
Regardless of the path chosen, the crux of the matter remains – the imperative need for collaboration and alignment between CIOs and CISOs. In a world where successful digital transformation is contingent upon the delicate relation between innovation and security, these IT leaders find themselves at the forefront, shaping the future of businesses large and small. The article will delve into the intricacies of this new development, shedding light on the collaborative journey of CIOs and CISOs as they navigate the ever-changing currents of technology and cybersecurity.
About two decades ago, CIOs primarily focused on managing an organization's IT infrastructure and applications. However, with the rise of digital transformation, cloud computing, and remote work, their role has shifted. Today, CIOs act as brokers of IT services, concentrating on how technology can drive innovation and effectively managing resources.
Concurrently, the profile of CISOs has been on the rise, fueled by compliance mandates, data breaches, and emerging cybersecurity threats. Compliance requirements such as HIPAA, PCI DSS, GDPR, and SOC 2 have played a dual role – increasing the visibility and budgets for cybersecurity teams but often falling short in addressing sophisticated threats like phishing and ransomware.
The growing importance of digital security at the board level has prompted CIOs, traditionally the voice of digital matters, to delve deeper into understanding cybersecurity. This trend blurs the lines between the roles of CIOs and CISOs.
Enter digital transformation, offering an opportunity to enhance cybersecurity. Despite some skepticism about its promises, digital transformation has necessitated closer collaboration between CIOs and CISOs. While CIOs continue to guide the ship, CISOs have become proactive partners, deeply involved in operational decision-making from the outset.
As companies embrace the cloud, software-as-a-service (SaaS), and remote work, the question arises – how will these roles evolve? The answer is not straightforward and depends on various factors like company size, industry, culture, and existing IT setup. Some suggest maintaining the status quo, while others propose splitting the roles into a business-oriented executive focusing on risk management and compliance, and a more technical executive concentrating on threat prevention and response.
Regardless of the direction these roles take, the overarching theme is the critical need for collaboration and alignment between CIOs and CISOs for successful digital transformation. This synergy is essential not only during the transformation process but also for navigating the evolving cybersecurity landscape.
In essence, the traditional boundaries between CIOs and CISOs are fading, giving way to a collaborative approach that acknowledges the intertwined nature of technology and cybersecurity. As companies navigate this evolution, the success of their digital transformation hinges on the ability of these IT leaders to work hand-in-hand, ensuring a secure and innovative future for businesses of all sizes.
This transformative shift emphasises the importance of simplifying and strengthening the relationship between CIOs and CISOs, creating a united front against the ever-growing challenges of the digital age.
The software company – JumpCloud – based in Louisville, Colorado reported its first hack late in June, where the threat actors used their company’s systems to target “fewer than 5” of their clients.
While the IT company did not reveal the identity of its affected customers, cybersecurity firms CrowdStrike Holding and Alphabet-owned Mandiant – managing JumpCloud and its client respectively – claims that the perpetrators are known for executing heists targeting cryptocurrency.
Moreover, two individuals that were directly connected to the issue further confirmed the claim that the JumpCloud clients affected by the cyberattack were in fact cryptocurrency companies.
According to experts, these North Korea-backed threat actors, who once targeted firms piecemeal are now making efforts in strengthening their approach, using tactics like a “supply chain attack,” targeting companies that could provide them wider access to a number of victims at once.
However, Pyongyang’s mission to the UN did not respond to the issue. North Korea has previously denied claims of it being involved in cryptocurrency heists, despite surplus evidence claiming otherwise.
CrowdStrike has identified the threat actors as “Labyrinth Collima,” one of the popular North Korea-based operators. The group, according to Mandiant, works for North Korea’s Reconnaissance General Bureau (RGB), its primary foreign intelligence agency.
However, the U.S. cybersecurity agency CISA and the FBI did not confirm the claim.
Labyrinth Chollima is one of North Korea’s most active hackers, claiming responsibility for some of the most notorious and disruptive cyber threats in the country. A staggering amount of funds has been compromised as a result of its cryptocurrency theft: An estimated $1.7 billion in digital currency was stolen by North Korean-affiliated entities, according to data from blockchain analytics company Chainalysis last year.
JumpCloud hack first came to light earlier this month when an email from the firm reached its customers, mentioning how their credentials would be changed “out of an abundance of caution relating to an ongoing incident.”
Adam Meyers, CrowdStrike’s Senior Vice President for Intelligence further warns against Pyongyang’s hacking squads, saying they should not be underestimated. "I don't think this is the last we'll see of North Korean supply chain attacks this year," he says.
The accused were discovered selling data on more than 140 distinct groups of individuals, including military personnel, bank clients, energy sector consumers, NEET students, government employees, gas agencies, high net worth individuals, and demat account holders.
Another category of victims include Bengaluru women’s consumer data, data of people who have applied for loans and insurance, credit card and debit card holders (of AXIS, HSBC and other banks), WhatsApp users, Facebook users, employees of IT companies and frequent flyers.
"When an individual calls the toll-free numbers of JustDial and asks for any sector or category related confidential data of individuals, their query is listed and sent to that category of the service provider. Then these fraudsters call those clients/ fraudsters and send them samples. If the client agrees to purchase, they make payment and provide the data. This data is further used for committing crime," stated the commissioner.
The accused gang apparently operated via registered and unregistered organizations: Data Mart, Infotech, Global Data Arts and MS Digital Grow.
The accused were found to have access to 2.5 lakh defense personnel's sensitive data, including their ranks, email addresses, places of posting, etc. The thieves gained access to the data of 35,000 Delhi government employees, 12 million WhatsApp users, 17 lakh Facebook users, and 11 million customers of six banks. Also, the defendants had access to information on 98 lakh applicants for credit cards.
Main suspect Kumar in Noida, Nitish Bhushan had created a call center and obtained credit card records from Muskan Hassan, another defendant. The other suspects, Pooja Pal and Susheel Thomar were reportedly operating as tele-callers at Bhushan’s call center. While, Atul Pratap Singh's business, "Inspiree Digital," gathered credit cardholder data and profitably marketed it. Atul's workplace had employed Muskan as a telemarketer before she started her own business, "MS Digital Grow." She served as a middleman, selling data. She organized the data that Atul had provided and sold it to Bhushan.
Sandeep Pal founded Global Data Arts and sold private consumer information to fraudsters engaging in online crimes through Justdial services and social media platforms. The seventh defendant, Zia Ur Rehman, shared the database with Atul and Bhushan and offered bulk message services for advertising.
The volume and sophistication of cybercrime attacks have sharply increased at the same time, causing concerns inside IT departments. According to the most recent study from Cisco AppDynamics, the shift to a security approach for the full application stack, 78% of technologists believe that their company is susceptible to a multi-stage cybersecurity attack that would target the entire application stack over the course of the following 12 months. Indeed, such an attack might have catastrophic results for brands.
The major problem for IT teams is the lack of the right level of visibility and insights in order to recognize where new threats are emerging across a complicated topology of applications. More than half of engineers claim that they frequently find themselves operating in "security limbo" since they are unsure of their priorities and areas of concentration.
IT teams can safeguard the complete stack of modern apps throughout the entire application lifecycle by using an integrated approach to application security. It offers total protection for applications across code, containers, and Kubernetes, from development to production. Moreover, with coupled application and security monitoring, engineers can assess the potential business effect of vulnerabilities and then prioritize their responses instead of being left in the dark.
In order to improve the organization security, tech experts are recognizing the need for adopting a security strategy for the entire application stack that provides comprehensive protection for their applications from development through to production across code, containers, and Kubernetes.
Moreover, IT teams are required to integrate their performances and security checks to gain a better understanding of the way security flaws and incidents could impact users and organizations. Tech experts can assess the significance of risks using severity scoring while taking the threat's context into account thanks to business transaction insights. This entails that they can give priority to threats that pose a risk to an application or environment that is crucial for conducting business.
Due to the complexity and dynamic nature of cloud-native technologies, as well as the quick expansion of attack surfaces, IT teams are increasingly relying on automation and artificial intelligence (AI) to automatically identify and fix problems across the entire technology stack, including cloud-native microservices, Kubernetes containers, multi-cloud environments, or mainframe data centers.
AI is already being used for continuous detection and prioritization, maximizing speed and uptime while lowering risk by automatically identifying and blocking security exploits without human interaction. Also, more than 75% of technologists think AI will become more crucial in tackling the issues their firm has with speed, size, and application security skills.
To safeguard modern application stacks, companies must encourage much closer IT team collaboration. With a DevSecOps strategy, security teams analyze and evaluate security risks and priorities during planning phases to establish a solid basis for development. This adds security testing early in the development process.
IT teams can be far more proactive and strategic in how they manage risk with a comprehensive approach to application security that combines automation, integrated performance, security monitoring, and DevSecOps approaches. A security strategy for the entire application stack can free engineers from their impasse and enable them to create more secure products, prevent expensive downtime, and advance into the next innovation era.