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Research from Netskope Threat Labs’ 2026 Europe Report has found that AI is becoming harder for security teams to govern as it moves beyond standalone tools and into the everyday applications employees already use.
The report found that while 64% of users in Europe interact directly with AI applications, 95% use applications that incorporate AI-powered features indirectly. A further 89% use applications that rely on user data for training. This means sensitive data is now at risk of being exposed not only through obvious GenAI prompts or uploads, but also through AI features operating inside normal workplace tools.
This challenge is made more complex by continued use of personal applications in corporate environments. Although European organisations are shifting employees towards managed AI tools, with personal AI app usage falling from 79% to 43% and organisation-managed AI usage rising from 28% to 72%, the proportion of users switching between personal and enterprise accounts has grown from 7% to 15%. This suggests that shadow AI risk is not disappearing, it’s simply changing shape as employees move between approved and unmanaged services.
Regulated data is where this risk is becoming most visible. Across AI and personal cloud applications in Europe, regulated data accounted for 59% of data policy violations, followed by source code at 15%, intellectual property at 13% and passwords and API keys at 12%. In personal applications specifically, regulated data accounted for 63% of violations.
The report also found that attackers are increasingly using trusted cloud services to distribute malware. GitHub and Microsoft OneDrive were the most abused platforms for malware distribution in Europe, each affecting 10% of organisations.
“Europe is moving past the early excitement phase of generative AI and into a more operational reality, where usage is widespread but control is still catching up” says Gianpietro Cutolo, Cloud Threat Researcher at Netskope Threat Labs. “Organisations are increasingly shifting away from personal AI tools toward managed environments, yet regulated data continues to dominate policy violations, showing where the real risk still sits. As AI becomes embedded into everyday workflows rather than used as a standalone tool, the challenge is no longer adoption, but maintaining visibility and control over sensitive data flowing through increasingly complex and connected systems”.
Additional key findings include:
AI usage now spans about 99% of organisations in Europe, with individual user adoption rising from 35% to 65% over the past year.
ChatGPT remains the most widely adopted AI app in Europe, used by 88% of organisations, followed by Anthropic Claude at 79% and Google Gemini at 69%.
LinkedIn is the most commonly used personal app in European workplaces at 89%, followed by Google Drive at 84%, ChatGPT at 82%, Google Gmail at 80% and OneDrive at 78%.
The personal apps most commonly subject to real-time controls are Google Drive at 32%, ChatGPT at 27% and Google Gmail at 22%.
The most frequently blocked AI applications in Europe are Particular Audience at 44%, ZeroGPT at 37% and DeepSeek at 36%.
