Report: AI adoption is expanding shadow IT
Contrary to expectations that AI would consolidate software stacks, a new report from SaaS management platform Torii finds it is accelerating SaaS sprawl. The 2026 benchmark report reveals that 61% of applications are unmanaged "shadow IT," as employees adopt new AI-powered tools outside of official procurement channels. The trend increases governance and security risks for enterprises.
- Gartner predicts that by 2027, 75% of employees will acquire, modify, or create technology without IT's awareness, a significant increase from 41% in 2024. This trend of "shadow IT" is a primary driver of SaaS sprawl, with spending on these unmanaged applications accounting for 30-40% of IT budgets in large enterprises. The average large enterprise now contends with over 1,400 SaaS applications, with 85-90% of them being outside of direct IT oversight. - The rise of AI is intensifying this issue, as employees increasingly adopt AI tools without approval; one 2023 report found 70% of employees use generative AI at work, with half starting without leadership's consent. This "Shadow AI" creates new risks, such as sensitive data leaks to third-party models and business decisions based on unvalidated outputs. - For adtech, the deprecation of third-party cookies is forcing a strategic shift towards AI-powered contextual targeting and first-party data collaboration within data clean rooms. However, early tests of Google's Privacy Sandbox have shown mixed results, with some publishers reporting revenue drops of up to 30% and ad-tech vendors seeing cost-per-thousand-impressions (CPMs) fall by 33%. - In the UK tech ecosystem, funding reached $15.3 billion in 2025, an 11% decrease from 2024, yet the UK maintained its position as the second-highest funded country globally. Late-stage funding remained strong at $7.6 billion, while seed and early-stage investments saw declines of 27% and 19% respectively, indicating a more cautious investment climate. - Enterprise Applications was a top sector for UK tech funding in 2025, raising $9 billion. London continues to dominate, securing 78% of the total funding. Notable 2025 funding rounds included Nscale, DAZN, and FNZ. - CTOs are increasingly leveraging AI-driven "agentic workflows," where autonomous AI agents manage complex, multi-step tasks without direct human intervention. These systems can reason, adapt, and learn, which helps to automate processes like IT service management, intelligent customer support, and even aspects of the software development lifecycle (SDLC). - The 2026 Formula 1 season will introduce significant regulation changes, including new power units that eliminate the MGU-H and nearly triple the MGU-K's output to 350kW. The cars will feature active aerodynamics on both front and rear wings, and the Drag Reduction System (DRS) will be replaced by a "manual override" system for a power boost. - Following pre-season testing, Ferrari's Charles Leclerc and Lewis Hamilton have shown promising pace, and Mercedes is rumored to have a superior power unit for the 2026 season. The season will kick off in Melbourne, Australia, and will include a new street circuit in Madrid.
