Report: AI Tools Are Increasing 'Shadow IT' in Companies
A new benchmark report from Torii finds that the proliferation of AI tools is accelerating SaaS sprawl and expanding 'shadow IT' within enterprises. The 2026 report claims that 61% of applications used by employees are unmanaged by central IT departments. This trend is reportedly surging as employees adopt new AI-powered SaaS tools, increasing governance and security risks.
- The average organization uses approximately 830 applications, with large enterprises averaging 2,191. This illustrates the scale of "SaaS sprawl" that IT departments must contend with. - "Shadow IT" refers to any hardware, software, or cloud-based service used on an enterprise network without the IT department's explicit approval or oversight. Common examples include using personal Google Drive accounts for work files or using unapproved messaging apps like Slack or WhatsApp for team communication. - This phenomenon is not new, but the rapid adoption of generative AI tools is a significant accelerator; spending on AI-native SaaS applications saw a 108% year-over-year increase. - One driver of shadow IT is the perceived inefficiency of internal IT processes, leading employees to seek out their own solutions to meet deadlines or because company-approved tools are too complex. - Unmanaged software introduces significant security vulnerabilities. Organizations that do not centrally manage their SaaS lifecycles are predicted to be five times more susceptible to cyber incidents or data loss by 2027. - The financial impact of SaaS sprawl includes wasted spending on unused or redundant software licenses, with Gartner estimating that up to 25% of licenses go unused. - Beyond security and financial risks, shadow IT can lead to compliance and governance violations with regulations like GDPR and HIPAA, as sensitive data may be stored or shared through unvetted applications. - The issue is widespread, with some research indicating that 75% of employees are expected to acquire, modify, or create technology without IT's oversight by 2027, a significant jump from 41% in 2022.
