AI is spreading through workplaces faster than the policies designed to manage it, creating a growing governance gap that many organisations are struggling to control.
New research from Smartsheet highlights how quickly employees are adopting AI tools to keep up with change—often without formal approval—and the risks that follow when governance lags behind behaviour.
Smartsheet’s 2026 operational excellence report, based on a global survey of 1,550 operations management professionals, found that AI is already embedded in everyday work. Almost all respondents said they use AI to support tasks such as content creation, workflow automation and repetitive admin. But while adoption is widespread, governance is not. Only 26% said their organisation has fully documented and enforced AI policies, while 70% admitted employees are using AI tools outside corporate guidelines.
This rise in so-called “shadow AI” reflects mounting operational pressure rather than casual rule-breaking. Nearly all respondents said they are forced to shift priorities frequently as business needs change, yet 71% reported that outdated tools and manual processes are holding them back. In that environment, employees are finding their own ways to move faster—even if that means introducing compliance and security risks.
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The data reveals a deeper contradiction. Efficiency was ranked as the most critical factor for success, yet 99% of respondents said they still spend time each week on low-value, repetitive tasks. More than half struggle to balance efficiency with adaptability, and only 8% believe their organisation has achieved operational excellence. AI is seen as part of the solution, but many organisations lack the infrastructure to deploy it safely at scale.
Workarounds have become the norm. Three-quarters of respondents said their organisation relies on them because systems can’t keep up with changing priorities. While these fixes help teams cope in the short term, they often create information silos. Almost everyone surveyed said visibility across work is essential, yet 61% acknowledged they don’t have full visibility across teams and projects.
Smartsheet’s Chief Product Officer, Pratima Arora, described the situation as an inflection point, warning that ungoverned AI use is creating new risks as teams attempt to overcome the limits of legacy tools. The report argues that organisations need more than isolated AI tools, calling instead for integrated approaches that combine automation with enterprise-grade governance and auditability.
“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.”
The findings suggest shadow AI is not a fringe issue, but a symptom of broader operational strain. As AI becomes part of standard work, organisations face a clear choice: evolve governance and systems to match how people actually work, or continue managing risk after the fact.
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