Smartsheet Research Reveals Security Risk: 70% of Operations Management Professionals Use “Shadow AI” Amid Pressure to Increase Efficiency
Smartsheet, the Intelligent Work Management platform that unites people, data and AI, today released its 2026 operational excellence report, which found a widening gap between the speed of business change and operational systems’ ability to adapt. The result is that most operations management professionals are using their own tools to increase efficiency, many of which are unsanctioned by IT.
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The challenges reported are consistent with those in project and portfolio management, indicating a pervasive, enterprise-wide execution crisis. Nearly all (99.6%) of teams must shift priorities due to rapidly changing business needs, but 71% of operations professionals report that outdated tools and manual processes are hindering progress. AI offers promising solutions for bridging the gap, but most organizations lack the necessary infrastructure and governance to implement the technology effectively.
“It’s clear that businesses are facing an urgent inflection point: operations professionals are creating compliance and security risks by using ungoverned, shadow AI to overcome the limitations of legacy tools,” said Pratima Arora, Chief Product Officer at Smartsheet. “An Intelligent Work Management platform is the answer. Smartsheet embeds AI directly into its platform with built-in enterprise-grade governance and audit trails, delivering security and compliance without sacrificing the speed teams need to succeed.”
Key insights from the report include:
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The shadow AI crisis: 70% use ungoverned tools, creating security risk
Most operations management professionals are turning to AI to improve efficiency, with 94% stating they currently utilize AI to assist with tasks such as content creation, automating repetitive tasks and streamlining workflows. However, only 26% of respondents say their companies have fully documented and enforced AI governance policies. In the absence of a clear AI strategy, 70% of respondents admit employees use AI tools not covered by corporate policy. As AI adoption outpaces corporate policy, the use of unsanctioned AI tools, often referred to as shadow AI, poses significant security and compliance risks to organizations.
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The operational paradox: efficiency is the top priority, yet 99% still spend time on low-value tasks
Survey respondents rank efficiency as the most critical factor for success; yet, nearly all (99%) admit to spending time on repetitive, low-value tasks each week, and more than half (63%) struggle to balance conflicting demands for efficiency and adaptability. It’s no surprise that only 8% believe their organizations have achieved operational excellence.
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Rigid processes and fragmented tools: 76% rely on workarounds that create visibility gaps and slow execution
Three-fourths (76%) of operations professionals say their organization relies on workarounds because their tools and processes can’t keep pace with changing business priorities. However, this approach often backfires, resulting in information silos that impede execution. While 97% say visibility into work across the organization is essential, 61% admit they lack full visibility.
Securely unlock operational excellence with Intelligent Work Management
To truly harness AI and mitigate risk, organizations need more than point solutions; they need a secure, governed operational layer that unites people, data and workflows into a system that evolves as quickly as the business. An Intelligent Work Management platform that embeds AI into existing workflows provides that foundation by prioritizing enterprise-grade governance, enabling:
- Governed AI at scale to ensure security, compliance and consistent usage without slowing innovation.
- Connected work for full visibility across teams and systems, eliminating silos and facilitating informed decisions.
- Data-driven insights that help teams anticipate disruptions and enable confident, proactive responses.
- Flexibility within standardized processes, so teams can move fast and adapt without sacrificing efficiency or control.
“The report highlights a critical shift in operations management: adaptability is now as important as efficiency, and fixed processes can’t keep pace with business change,” said Maribel Lopez of Lopez Research. “AI can help close this gap, but only when paired with enterprise-grade governance and secure, integrated workflows. Organizations that embrace this shift will gain the visibility and agility needed to respond to disruption, reduce risk and turn operational complexity into a competitive advantage.”
Report methodology
Smartsheet partnered with Dimensional Research to conduct a global online survey with a total of 1,550 operational management professionals from the United States, the United Kingdom, Germany, France, Singapore, Japan and Australia. All participants had responsibilities for operations management and included a mix of ages, job levels, job functions, company sizes and industries. The survey was fielded in September and October 2025.
About Smartsheet
Smartsheet is the Intelligent Work Management Platform that unites people, data and AI to turn strategy into measurable enterprise impact. Purpose-built for scale, Smartsheet gives enterprises the speed, governance and trust to execute complex work across portfolios, operations and IT on a single, secure system. Trusted by 123,000 customers and used by teams in 85% of the Fortune 500, Smartsheet empowers millions of users to move faster, reduce risk and realize ROI with confidence. Visit www.smartsheet.com to learn more.
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Abstract
Smartsheet Research Reveals Security Risk: 70% of Operations Management Professionals Use “Shadow AI” Amid Pressure to Increase Efficiency
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“It’s clear that businesses are facing an urgent inflection point: operations professionals are creating compliance and security risks by using ungoverned, shadow AI to overcome the limitations of legacy tools.”
