Report: AI Is Expanding 'Shadow IT' Instead of Consolidating SaaS
A new report from SaaS management firm Torii finds that the proliferation of AI tools is accelerating SaaS sprawl and expanding 'shadow IT' within companies. The 2026 Benchmark Report reveals that 61% of software-as-a-service applications are unmanaged by IT departments. This trend suggests that instead of consolidating software stacks, AI is increasing governance and security risks for enterprises.
- "Shadow IT" refers to any hardware, software, or application used for business purposes without the explicit approval or oversight of the IT department. This trend has accelerated with the adoption of cloud-based services that are easily accessible to employees. - A primary driver of shadow IT is the employee desire for efficiency and the use of familiar tools, often in response to slow internal processes or gaps in company-provided software. Four out of five employees have admitted to using unauthorized software for work. - The proliferation of unmanaged software, known as SaaS sprawl, introduces significant security vulnerabilities. Unvetted applications may lack proper security controls, increasing the risk of data breaches, compliance violations with regulations like GDPR or HIPAA, and malware attacks. - Beyond security, shadow IT creates financial risks, with Gartner estimating it accounts for 30-40% of IT spending in large organizations. This can lead to redundant application subscriptions and wasted software license fees. - The adoption of AI in enterprises is growing rapidly, with a projected annual growth rate of 36.6% from 2023 to 2030. This surge in AI tools contributes to shadow IT as employees independently adopt new applications to enhance productivity. - Research from McKinsey indicates that AI could boost the productivity of software engineering by 20% to 45% of current annual spending on the function. This potential for increased efficiency is a major incentive for employees to adopt new AI tools, often outside of official IT channels. - In 2023, 44% of experienced software developers reported using AI tools in their development process. This trend highlights the rapid integration of AI into workflows, often preceding formal IT approval and management. - The challenge for businesses is to manage the influx of new AI applications by implementing robust SaaS management and security protocols without stifling the innovation and productivity gains that these tools can offer.
