Executive insights
Why shadow AI is costing revenue teams millions each year

Eilon Reshef
Chief Product Officer & Co-Founder at Gong
Published on: November 6, 2025

The rise of shadow AI
Sales reps are resourceful. When the end of quarter looms and quotas mount, they’ll find the fastest path to productivity. Increasingly, that path involves AI. But there’s a catch: They often use tools that aren’t sanctioned by IT or leadership.
The quiet adoption of personal AI is what researchers are now calling “shadow AI” and it’s exploding in revenue teams. In fact, The GenAI Divide: State of AI in Business 2025 reports that while only 40 percent of companies have official enterprise AI subscriptions, employees at more than 90 percent of those same firms are already using personal ChatGPT or Claude accounts to handle their daily work.
At first glance, this might seem like a productivity win. Sellers are taking the initiative to work smarter and are turning to AI for everything from crafting emails to summarizing calls. But beneath the surface, shadow AI creates a massive blind spot — one that could be costing revenue organizations millions in lost opportunities, unrecognized lessons learned, and unmanaged risks.
Productivity without visibility
Shadow AI thrives because it’s accessible. A rep can log into ChatGPT or subscribe to Claude in minutes with no training, integration, or approvals required. The problem is that these tools are designed for individuals, not teams.
When sellers use their own AI, leadership loses sight of three things:
- What’s working and what isn’t: Prompts that lead to winning customer conversations never make it back into the organization’s playbook. The collective intelligence of the sales team remains scattered in private accounts.
- How productivity connects to outcomes: A rep might save time on email drafting, but if leadership can’t measure whether those AI-assisted emails actually drive higher conversion, there’s no way to double down on success.
- Where the risks are: Sensitive customer data may be entered into systems without enterprise-grade guardrails, creating compliance and security vulnerabilities.
The GenAI Divide highlights that a lack of access to this feedback is the single biggest reason most companies’ AI initiatives fail. While 80% of companies have piloted AI tools, only 5% have seen a measurable profit and loss impact.
Systems that don’t learn from, adapt to, or improve on their context remain stuck in pilot purgatory. Shadow AI, by design, falls into this trap. You can’t link specific usage to outcomes, and it can’t improve at scale.
A costly divide
This isn’t just a workflow issue. It’s a revenue growth issue.
The MIT research behind The GenAI Divide points to a gap between organizations that adopt AI in ad-hoc ways (like shadow AI) and those that integrate it deeply into workflows. On the wrong side of the divide, companies experiment endlessly but see no real transformation. On the right side, a smaller number of organizations are unlocking millions in measurable value by using adaptive AI systems that learn from feedback and tie individual and team outputs directly to business results.
For revenue teams, staying on the wrong side of this divide poses three risks:
- Slower learning cycles: When every seller reinvents the wheel with their own AI hacks, best practices never emerge or scale.
- Lost competitive advantage: Early adopters of enterprise-grade, learning-capable AI are already seeing faster deal cycles and improved win rates than those who don’t use the tech. Here’s the data to prove it.
- Heightened risk: As security and compliance concerns mount, regulators are beginning to scrutinize uncontrolled AI usage. Leaders who ignore shadow AI may find themselves facing both reputational and financial costs if its terms of use change and their teams are left hanging.
The leadership gap
What is it about shadow AI that makes it thrive? Oftentimes, it’s the fact that leadership hasn’t provided an alternative.
The State of Sales Productivity Report found that only 38% of sellers say their company has clear AI guidelines or policies. That means most reps are left to figure out AI’s use for themselves.
This leadership gap creates fertile ground for shadow AI. Sellers want to use it because it works, but they don’t have an approved, trusted framework for its daily use.
The path forward: Step out of the shadows
The good news is that shadow AI doesn’t have to remain in the shadows. In fact, its use can be a powerful demonstration of what’s possible when AI is accessible and effective. Organizations that succeed often study how employees already use their personal AI tools, and then channel that behavior into sanctioned, secure, and learning-capable systems, purpose-built for revenue and embedded into their teams' workflows.
Research shows that winning companies do three things differently:
- Buy, don’t build: Instead of experimenting endlessly with internal builds that fail to scale, they partner with vendors whose systems are purpose-built to adapt and learn.
- Empower the frontlines: Instead of waiting for leadership to dictate strategy, they source use cases from reps and managers who know the team’s workflows best.
- Integrate deeply: They prioritize solutions that plug into existing systems (like CRM) and evolve over time, rather than using one-off point solutions.
For revenue organizations, this means moving from a world in which AI is an unsanctioned sidekick to one in which it’s a strategic advantage.
The case for solutions with domain expertise
Generic tools like ChatGPT are powerful for individual productivity, but they can’t close the loop between inputs and revenue outcomes. They forget context, can’t accumulate knowledge across a team, and don’t integrate into core workflows.
Solutions with revenue domain expertise like the Gong Revenue AI OS, by contrast, connect AI usage directly to winning outcomes. They remember what works, improve over time, and are designed with enterprise-grade security and compliance in mind. Most importantly, they give leadership the visibility needed to turn isolated productivity into repeatable revenue growth.
This isn’t about replacing a rep's ingenuity as they tap into AI; it’s about capturing it, scaling it, and learning from it. Shadow AI proves there’s demand. Domain-specific AI makes it measurable, safe, and transformative.
Shadow AI is already here, and it’s costing organizations millions in missed opportunities. But with the right strategy — and the right solution — leaders can bring it into the light. In doing so, they won’t only close the “GenAI Divide,” they’ll open a new frontier of measurable, scalable, and secure revenue growth.

Chief Product Officer & Co-Founder at Gong
Eilon Reshef is the Co-Founder and Chief Product Officer at Gong, the leading platform in the revenue intelligence space. Since co-founding Gong in 2015, Eilon has spearheaded its product and engineering efforts, transforming how sales teams harness data to drive success. Gong uses AI to analyze sales interactions, offering actionable insights that help businesses grow revenue. Prior to Gong, Eilon co-founded Webcollage, a SaaS platform for e-commerce infrastructure. With deep expertise in product strategy and AI, Eilon is a key figure in advancing sales technology and operations.
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