Are Unmanaged SaaS and AI Tools Risking Your Enterprise’s Security?

A recent report by Grip Security has unveiled the widespread issue of unmanaged SaaS applications and AI tools within enterprises, spotlighting a significant security risk. According to the study, an astonishing 90 percent of SaaS applications and 91 percent of AI tools, such as ChatGPT, operate without proper management, leaving organizations vulnerable to potential threats. Over the past two years, there has been a 40 percent increase in the number of SaaS applications used in enterprises, along with an 85 percent rise in the number of accounts per user. Alarmingly, 73 percent of these provisioned users do not utilize their SaaS licenses, creating a complex security predicament for enterprise IT departments.

One of the most critical issues highlighted by the report is the phenomenon of Shadow SaaS and Shadow AI. These terms refer to applications that are used without the knowledge or control of the IT department, leading to serious implications such as potential data breaches, non-compliance issues, and operational inefficiencies. The research indicates that while 42 percent of popular AI tools possess SAML capabilities, a staggering 80 percent are not managed accordingly. Such unmanaged tools fly under the radar of traditional IT oversight, exacerbating the risks they pose to organizational security and efficiency.

The Growing Threat of Shadow SaaS and AI

Lior Yaari, co-founder and CEO of Grip Security, underscores the disparity between perceived and actual security, attributing it to the unmanaged nature of these applications. Yaari emphasizes the necessity for real-time visibility and a robust risk governance program to ensure a secure environment. This sentiment is echoed by Gartner’s prediction that 75 percent of employees will be using technologies outside IT’s oversight by 2027, highlighting the urgency for a paradigm shift in SaaS security strategy. The increase in Shadow SaaS and AI usage is not just a vulnerability but a ticking time bomb waiting for the opportune moment to explode into disastrous consequences.

The lack of management over SaaS and AI tools not only presents security risks but also hampers operational efficiency by creating redundant or unused resources. With a substantial portion of provisioned licenses remaining unutilized, enterprises face significant wastage of financial and technological resources. This inefficiency is compounded by the risk of non-compliance, especially in industries with stringent regulatory requirements. Ensuring all software tools are properly managed and compliant with organizational policies is not just a best practice but an urgent necessity in today’s rapidly evolving tech landscape.

Toward a Holistic, Identity-Driven Security Approach

A recent Grip Security report has revealed a major concern with unmanaged SaaS applications and AI tools in enterprises, presenting a substantial security threat. The study found a staggering 90 percent of SaaS applications and 91 percent of AI tools like ChatGPT operate without proper oversight, exposing organizations to various risks. In the past two years, there’s been a 40 percent surge in SaaS application usage within enterprises and an 85 percent increase in the number of accounts per user. Alarmingly, 73 percent of these users do not utilize their SaaS licenses, creating a challenging security scenario for enterprise IT teams.

One of the most pressing issues identified by the report is the rise of Shadow SaaS and Shadow AI. These terms describe applications used without IT department knowledge or control, leading to potential data breaches, regulatory non-compliance, and operational inefficiencies. The research shows that while 42 percent of popular AI tools have SAML capabilities, an overwhelming 80 percent are not properly managed. These unmanaged tools evade traditional IT oversight, worsening the risks they pose to organizational security and efficiency.

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